Investment Advisers: FAQs

Our Most Frequently Asked Questions

  1. Is there a De Minimus Rule for investment advisers?
  2. Do solicitors have to be registered?
  3. Are annual financial statements required for investment advisers?
  4. Are investment advisers notified in advance of examinations?
  5. What should I expect during an examination?
  6. Are there any exams required for investment adviser representatives?
  7. Are investment adviser representatives allowed to register with more than one investment adviser?

FAQ Answers

  1. Is there a De Minimus Rule for investment advisers?

    Answer:
    Yes. Generally, a person without a place of business in this state if the person has had, during the preceding twelve (12) months, not more than five (5) clients that are resident in this state. Please see Miss. Code Ann. §75-71-403(b) for additional information regarding clients and investment adviser registration exemptions.

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  2. Do solicitors have to be registered?

    Answer:
    Yes. Pursuant to Mississippi Securities Act Rules 6.31 (B) It shall be unlawful for any investment adviser, registered or required to be registered, to pay a cash fee or any other economic benefit, directly or indirectly, in connection with solicitation activities unless the solicitor is registered as an investment adviser representative. For additional information, including additional rules that apply to solicitors please see the Mississippi Securities Act Rules 6.31.

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  3. Are annual financial statements required for investment advisers?

    Answer:
    No, unless the investment adviser has custody of client funds or securities or requires payment of advisory fees six (6) months or more in advance and in excess of Five Hundred Dollars ($500.00) for any client shall annually file with the Division an audited balance sheet as of the end of the investments adviser’s most recent fiscal year.

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  4. Are investment advisers notified in advance of examinations?

    Answer:
    Yes. Typically you will be contacted in advance and provided with information regarding what the Division will be reviewing during the examination. However, from time to time, the Division also makes unannounced examinations.

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  5. What should I expect during an examination?

    Answer:
    The examiner will review documents and records to determine compliance with relevant laws and regulations, and interview employee(s) regarding the operations of the investment adviser. See Mississippi Securities Act Rule 6.19 for information regarding record keeping requirements for investment advisers.
    More Information about State IA Exams

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  6. Are there any exams required for investment adviser representatives?

    Answer:
    Yes. Investment adviser representatives are required to take and pass within the two (2) year period immediately preceding the date of the application:

    1. The Uniform Investment Adviser State Law Examination (S65); or
    2. The Uniform Combined State Law Examination (S66) and the General Securities Representative Examination (S7).

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  7. Are investment adviser representatives allowed to register with more than one investment adviser?

    Answer:
    No. Pursuant to Mississippi Securities Act Rules 6.13(G) an investment adviser representative may associate with only one (1) investment adviser at a time. ​​​​​​

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