Are you a registered investment adviser (RIA) firm registered with the state of New Jersey? For over 15 years the New Jersey Bureau of Securities has required all state-registered investment advisers to complete an annual written examination and this year is no different. Each year the exam is updated to reflect current priorities set forth by the Bureau and trends in the investment advisory arena. This year’s exam consists of 39 questions across the following categories:
- Business
- Policies and Procedures
- Personnel, Associated Persons and Other Activities
- Complaints
- Advertising and Promotional Activities
- Custody and Financial Condition
Although the Bureau conducts regular on-site examinations of state registered firms, with all state-registered New Jersey RIA firms completing the annual written adviser examination, it allows the state to better prioritize onsite examinations based on individual firm risk profiles that the state utilizes the exam to compile. Per the instructions provided by the New Jersey Bureau of Securities, “completion of the written examination, however, does not guarantee that the Bureau will not contact you with additional questions or conduct an onsite examination of your advisory firm.”
Examinations are to be completed and submitted digitally no later than Friday May, 15, 2015. No exam submissions will be accepted or reviewed if mailed or emailed. To review the examination instructions, check out the Bureau’s instructions here.
As RIA compliance consultants, we strongly recommend that all state-registered investment advisory firms located in New Jersey complete and submit the exam as soon as possible given the pending deadline. The exam is quite detailed and will take some time to complete. Advisory firms that wait until the final day to complete this exam may not have enough time to gather any additional information that needs to be provided.