An IAR registers using the same mechanics as a broker-dealer agent (covered in the Agents chapter). The key points:
- Registration is filed on Form U4 by the investment adviser firm on the IAR's behalf (the IAR does not file directly).
- The applicant files a consent to service of process, appointing the Administrator as agent for legal process. It is a one-time, irrevocable filing that survives termination of registration.
- Absent a denial order or pending proceeding, registration becomes effective at noon on the 30th day after a complete application is filed. The Administrator does not "approve" registrations; they become "effective."
- Registration of an investment adviser automatically constitutes registration of any IAR who is a partner, officer, or director of the firm.
Exam Tip: Gotchas
- Registration is never "approved" by the Administrator; it becomes "effective." This is a terminology trap on the exam.
- The consent to service of process survives termination of registration. A former IAR can still be served through the Administrator.