A significant post November regulatory event is noted for advisers with more than 5 clients in the State of New York. On December 2, 2020, New York Attorney General Letitia James announced the adoption of final rules that will modernize registration and filing with the Investor Protection Bureau in the Office of the Attorney General (“OAG”). Effective February 1, 2021, Part 11 of Chapter II, Title 13 of the NYCRR will be amended to require the registration of investment adviser representatives (IAR) in New York, fully implementing the OAG’s registration authority under the Martin Act. IARs will be required to register through the Central Registration Depository/Investment Adviser Registration Depository (collectively CRD/IARD). IARs will be explicitly required to meet exam requirements and register with the state. To accommodate this change, the rule contains a significant implementation period, which allows those currently engaged in business covered by the new regulations to continue their business without an approved registration until December 2, 2021, so long as certain criteria are met. The adopted rule also creates a new exam special waiver category for people who have been serving as IARs for at least two years.
[https://ag.ny.gov/sites/default/files/text_of_revised_adopted_regulations_part_11.pdf],
[https://ag.ny.gov/sites/default/files/13-nycrr-11-unofficial.pdf],
[https://ag.ny.gov/press-release/2020/attorney-general-james-announces-final-rules-modernize-and-streamline-securities].