Investment Advisers: FAQs
Is there a De Minimus Rule for investment advisers?
Yes a person without a place of business in New Mexico, and if during the preceding 12 months does not have more than 5 clients that are residents in New Mexico are not required to register.
Do solicitors have to be registered?
Pursuant to Rule 220.127.116.11 NMAC A solicitor is not required to be registered as an investment adviser or investment adviser representative if the solicitor either:
- Receives compensation that consists of a one-time payment only; or
- The Securities Director grants a waiver for the registration requirement.
Are annual financial statements required for investment advisers?
Yes, financial statements are required annually for all notice filers and state registered investment advisers.
Are investment advisers notified in advance of examinations?
Yes, if your firm is to be examined, the Division may either schedule an appointment in advance, but examinations may also be unannounced.
What should I expect during an examination?
The examiner will review documents and records to determine compliance with relevant laws and regulations, and interview employee(s) regarding the operations of the investment adviser. See Rule 18.104.22.168 NMAC for the list of record keeping requirements.