AR&H News & Blog
Are Mid-Sized Advisers Required to Register with the Securities and Exchange Commission?
By: Daniel A. Perry Time for another typical lawyer answer … it depends! As we discussed in a previous article, a Mid-Sized Adviser is defined as an adviser that manages between $25 million and $100 million in assets under management. In addition, a Mid-Sized Adviser, just like an Investment Adviser (IA) and an Investment Adviser Representative […]
What is a Security for Purposes of Registration Requirements with the Securities and Exchange Commission?
By: Daniel A. PerryBecause of the Stock Market Crash of 1929 followed by Great Depression in the 1930s, sweeping changes occurred to the financial markets in the form of new legislation. These changes were put in place to prevent the abuses believed to have led to the Stock Market Crash and Great Depression. These acts […]
Does Forming a Corporation Protect Me from Debts and Lawsuits?
By: Daniel A. Perry Time for the classic lawyer answer again! “It depends.” If you have a corporation, generally, the individual shareholders are not liable for the debts and liabilities for the corporation. For example, if your corporation was sued for $25,000.00, the other party could only collect from the assets of the corporation. The other […]
What is an Investment Adviser Representative?
By: Daniel A. PerryAn Investment Advisor Representative, depending on the state, is a person who 1) makes any recommendations regarding securities, (2) manages accounts of clients, (3) determines which recommendation or advice regarding securities should be provided, (4) solicits or sell investment advisory services, or (5) supervises employees who perform any of the above items.Just […]
What Is Included in an Adviser’s Application for Registration?
By: Daniel A. PerryFortunately, an application for registration is done entirely online which makes registration easier. However, there are still several requirements that you need to complete. The registration is completed online through the Investment Adviser Registration Depository (IARD). Once you have obtained your login for the IARD, you can proceed with registration.Your application for […]
When Is It Appropriate to Select a Corporate Trustee?
When I speak with clients and ask them the question “who do you want to make decisions on your behalf should you become incapacitated, and who do you want making decisions when you are gone,” clients routinely have difficulty answering the question.Many times, families believe that they should select their oldest adult child as the successor trustee. […]
What is an LLC?
By: Daniel A. Perry An LLC, which stands for limited liability company, is one of the most popular types of business entities because of its ease in formation. In general, the members of an LLC are not held personally liable for the debts and liabilities of the company. An LLC is formed upon filing Articles of […]
What is a Side Letter in Relation to Private Equity and Hedge Funds?
By: Daniel A. PerryCommonly, private equity and hedge funds are structured as limited partnerships which are governed by the partnership agreement. A partnership agreement will generally determine the rights, actions, and responsibilities of the general partner and limited partners. One aspect that is currently used in the context of private equity and hedge funds is […]
What is a 3(c)(7) Fund?
By: Daniel A. Perry A 3(c)(7) fund applies to a private equity fund in relation to Section (3)(c)(7) of the Investment Company Act of 1940. This specific regulatory act was enacted because of The Stock Market Crash of 1929 and the ensuing Great Depression. It provided numerous safeguards to the investing public. This specific section of […]
What is a Registered Investment Adviser?
By: Daniel A. Perry A Registered Investment Adviser (RIA) is a person or firm which advises individuals and families regarding their investments and manages their portfolios. Depending upon the size of the assets and/or the size of the firm, an RIA will be required to register with the state securities division and/or the Securities and Exchange […]