Awesome! I thought you may be able to help with the following.........The Federally Covered RIA Schwab is in NY state, The IAR David works for RIA Schwab in NY inside Schwab's building (office). Should David register in NY state as is or he should have his separate office to register in NY? Thank you in advance!
@@zmack1830 David should register in NY as an IAR of Schwab. Legally speaking, IARs of federal covered advisers only register in the state they maintain an office in. I'm not sure what you mean about him registering as is or have his separate office register. If David is not running a business separate from Schwab, then there is no need to register his office as a separate entity. Hope this helps!
I keep falling for the answer that says Investment Management Company in thinking that is an investment company which would be required to register. How might I find a way to tell the difference between the two because it's getting me everytime!
Management companies (open and closed-end) are types of investment companies. Not sure if you're referring to these. Can you share a bit more so I can try to help?
@@chasing_chika I see what you mean. The difference is subtle, but it's an investment company vs. an adviser managing an investment company. GHI is an investment company and would be registered as an investment company (not an adviser). Here's a real world example - let's talk about the Fidelity Large Cap Stock Fund. The fund itself is a registered investment company (not an adviser). If my company (Basic Wisdom) was hired to manage the Fidelity Large Cap Stock Fund, my company would be required to register as a federal covered adviser. The key is knowing what we're focusing on. Firms that manage/advise investment companies must register as federal covered advisers. The investment companies (mutual funds, closed-end funds, UITs) must register and investment companies. I hope that helps!
I assume you are referring to the "multi-state" rule, where an adviser performing business in 15 or more states is eligible for registration as a federal covered adviser. If so, it is covered in this video at 2:40.
