Massachusetts Proposes New Regulations Related to Investment Adviser Representative Registration


On March 15, 2013, the Massachusetts Securities Division started the process to amend the  regulations for investment adviser representative (“IAR”).

The proposal would require an IAR applicant to submit to a review of the Massachusetts Criminal Offender Record Information (CORI) of the applicant.

The Division believes that it is in the public interest and for the protection of investors to conduct criminal background checks of those individuals seeking IAR registration in order to ensure that the applicant is not subject to a statutory disqualification and has truthfully and accurately disclosed any criminal background required on Form U-4. The Registrations, Inspections, Compliance and Examinations (“RICE”) Section of the Division has recently been granted access to utilize the Massachusetts “iCORI system,” an electronic criminal history database, in order to conduct these reviews.

However, the CRD system for submitting Form ADV is not able to accept the required CORI acknowledgement. So Massachusetts registered investment advisers will have to send the form directly to the state regulators.

Also, Massachusetts is cleaning up its regulations as to Form ADV to comply with the SEC’s 2010 changes to the form. The proposed language is based upon the NASAA model brochure rule. Along with that ate a bunch of other small changes that clean up the Massachusetts investment adviser regulations.

The Request for Comment and the Proposed Regulations are available on the Division’s website at

The comment period will end on Wednesday, May 15, 2013.  A public hearing on these proposed changes will be held at 10:00 a.m. on Wednesday, May 15 at One Ashburton Place, 17th Floor, Boston, MA 02108.