N.J. Bureau of Securities Announces Launch of Modernized Investment Adviser Examination Process
NEWARK – The New Jersey Bureau of Securities has completed the modernization of the annual investment adviser examination process, which was released on April 17th. This year, the written examination is web-based, allowing for documents to be uploaded and electronically submitted. It is anticipated this will be more user-friendly and streamlined for the investment advisers registered with Bureau.
As a part of the Bureau's examination authority, the Examination Unit creates and reviews an annual written examination that is required to be completed by approximately 900 New Jersey-registered investment advisers, including approximately 100 mid-sized investment advisers for whom New Jersey became the primary regulator under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The examination asks various questions regarding the business model of the investment adviser. The answers to these questions are used to determine the need for an on-site or desk examination, as well as to monitor the different approaches used to render the investment advice. The electronic format for the exam will enable the Bureau examiners to quickly and efficiently analyze the information derived from the examination.
"The updated investment adviser examination process is a great example of how we're working smarter, to better protect investors and their hard-earned money," said Attorney General Jeffrey S. Chiesa. "As the regulator overseeing the state's securities industry, protecting investors is our focus and we now have a new tool to help us do so."
Eric T. Kanefsky, Acting Director of the State Division of Consumer Affairs, said that, "today entities and individuals dealing with their regulators expect effective systems to be in place. This new process is less burdensome to investment advisers, while also allowing our Bureau of Securities to more effectively identify those registered individuals in need of additional review and scrutiny."
"The new annual examination will allow registrants to provide the Bureau with detailed information about their business models, without creating the need to mail a large number of documents," Bureau Chief Abbe R. Tiger said. She also described the importance of the information being supplied through the process. "The Bureau's role as a regulator requires it to understand how investment advisers are operating in the State of New Jersey. An electronic examination with clear questions allows us to gather information efficiently, so that it can be put to use in how we interact with the industry."
The Examination Unit is headed by Stephen Bouchard, Director of Examinations.
The Bureau of Securities can assist investors in determining whether those selling securities, as well as securities offered for sale, are registered or are exempt from registration. The Bureau can be contacted toll-free within New Jersey at
1-866-I-INVEST (1-866-446-8378) or from outside New Jersey at
973-504-3600. The Bureau's website is
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