INVESTMENT ADVISORS

The registration process for an Investment advisor is relatively simple. The applicant must determine if it will be a state registered advisor and/or registered with the Securities and Exchange Commission. Application for registration is made by filing a Form ADV, Forms U4 for all persons providing investment advice and paying the applicable fees. Individual states may require additional forms for registrations. Once a complete filing is submitted, the SEC has 45 days to declare that applicant's registration effective. Individual states may take longer depending on their individual registration requirements.

The critical elements to submitting a successful investment advisor registration:

• A complete Form ADV Part I (a description of the advisor's business);
  
• A detailed and accurate Form ADV Part II and Schedule F (a written disclosure brochure about the advisor's business practices);
  
• A detailed Schedule H for advisors offering wrap fee accounts; and
  
• Timely licensing of all persons involved in providing investment advice.

In addition to the registration process, SEC registered advisors and most state advisors must develop Written Supervisory Procedures and a Code of Ethics. (Note: the Code of Ethics becomes a requirement effective 1/7/05.) Finally, prior to commencing operation, the advisor must establish all required books and records.

At Mainstay, our consultants have many years of direct experience with the advisor registration process. As such, we are uniquely positioned to provide the assistance needed to submit a successful registration application.

Contact a Mainstay consultant to request additional information.