Coast to coast
compliance
Coast to Coast Compliance works with a diverse client base located across the United States, as well as some domiciled internationally.
These clients include investment advisers (SEC-registered, state-registered, exempt reporting advisers, international advisers, etc.), alternative asset managers (private equity funds, hedge funds, real estate funds, venture capital funds, etc.), broker-dealers, investment banks, money services businesses, business brokers, and other financial services organizations.
The following is helpful information to determine under which category an investment adviser falls under. Investment advisers can be divided into the following categories based on their regulatory assets under management (“RAUM”):
Generally, small advisers and mid-sized advisers are required to register with and are primarily regulated by a state securities authority where their principal office is maintained, unless a registration exemption is available. If a mid-sized adviser is not required to be registered in a state, they must file with the SEC unless an exemption is available. State registered investment advisers (i.e. small and mid-sized advisers) have Form ADV filing requirements as well as other compliance requirements such as developing and maintaining a compliance program.
Generally, large advisers are required to register with and are primarily regulated by the SEC, unless a registration exemption is available. For example, investment advisers with between $100 - $150 million RAUM solely attributable to private funds may qualify as an Exempt Reporting Adviser under the Private Fund Adviser Exemption. However, once that adviser’s RAUM is over $150 million, they would then be required to register with the SEC.
Exempt reporting advisers (“ERAs”) are not “registered with” the SEC; however, they file an abbreviated Form ADV among other compliance requirements. Federally, the two exemptions that investment advisers can use to claim ERA status are: (i) the Private Fund Adviser Exemption; or (ii) the Venture Capital Fund Adviser Exemption.
The Securities Exchange Act of 1934 ("Exchange Act") governs the way in which the nation's securities markets and its brokers and dealers operate. Most "brokers" and "dealers" must register with the SEC and join a "self-regulatory organization." Under Section 15(b) of the Exchange Act, if a broker-dealer does not qualify for an exemption, the broker-dealer must register and the broker-dealer may not begin business until:
Section 3(a)(4)(A) of the Exchange Act generally defines a "broker" as any person engaged in the business of effecting transactions in securities for the account of others. Sometimes you can easily determine if someone is a broker. For instance, a person who executes transactions for others on a securities exchange clearly is a broker. However, other situations are less clear. For example, each of the following individuals and businesses may need to register as a broker, depending on a number of factors:
Section 3(a)(5)(A) of the Exchange Act generally defines a "dealer" as: any person engaged in the business of buying and selling securities for his own account, through a broker or otherwise. Unlike a broker, who acts as agent, a dealer acts as principal. The definition of "dealer" does not include a "trader," that is, a person who buys and sells securities for his or her own account, either individually or in a fiduciary capacity, but not as part of a regular business. Individuals who buy and sell securities for themselves generally are considered traders and not dealers. Sometimes you can easily tell if someone is a dealer. For example, a firm that advertises publicly that it makes a market in securities is obviously a dealer. Other situations can be less clear. For instance, each of the following individuals and businesses may need to register as a dealer, depending on a number of factors:
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