NYS Adopts New Rules Regarding IAR Registration in the State

New York State is amending Part 11 of Chapter II, Title 13 of the NYCRR — will 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). Beginning on February 1, 2021, 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.