NASAA Series 63Regulation of Investment Advisers and IARsMedium
A state-registered investment adviser (IA) has decided to cease all advisory activities and dissolve its business. The IA files Form ADV-W to withdraw its registration. According to the Uniform Securities Act, when does the withdrawal of registration typically become effective?
- AUpon the Administrator's explicit approval, which may take an indefinite amount of time.
- BImmediately upon filing Form ADV-W with the Administrator.
- C30 days after the filing of Form ADV-W, or a shorter period as determined by the Administrator.
- D60 days after the filing of Form ADV-W, or a shorter period as determined by the Administrator.
Show answer & explanationAnswer & explanation
Correct answer: D. 60 days after the filing of Form ADV-W, or a shorter period as determined by the Administrator.
Under the Uniform Securities Act, the withdrawal of registration for an investment adviser generally becomes effective 60 days after the Administrator receives the application for withdrawal (Form ADV-W), or within such shorter period as the Administrator may determine.
Why the other options are wrong
- A. While Administrator approval is involved, there's a statutory timeframe for effectiveness.
- B. Withdrawal is not immediate to allow the Administrator time for review.
- C. This period is typically 60 days, not 30 days, for withdrawal of registration.
IA Registration Withdrawal Effectiveness
The withdrawal of an investment adviser's state registration typically becomes effective 60 days after filing Form ADV-W, unless the Administrator shortens the period.
- Initiated by filing Form ADV-W.
- Allows Administrator time to review outstanding issues (e.g., client complaints).
- The Administrator can accelerate the effective date.
Memory trick: When an IA 'W-ithdraws', they start a '60-day WAIT' for it to officially end.