State Advisers to Register in Federal Databank

August 23, 2004 ( - State-registered investment advisers seeking investment manager status under federal benefits law must register electronically through the Investment Adviser Registration Depository (IARD).

The US Department of Labor’s Employee Benefits Security Administration (EBSA) announced the rule Monday covering advisers looking for the manager status under the Employee Retirement Income Security Act (ERISA).

The IARD is a centralized electronic filing system for investment advisers created by the US Securities and Exchange Commission (SEC) and state securities regulators.   A majority of state-registered investment advisers who are investment managers of ERISA-covered plans already file registration forms electronically through the IARD, the EBSA said in a news release.

“Our rule allows plan fiduciaries to consult a single source to find out whether an investment advisor is registered, while also streamlining the process through the elimination of paper filings,” said Ann Combs, assistant secretary of EBSA, in the news release.

Under ERISA, plan trustees are relieved of certain liabilities relating to management of plan assets by a registered investment adviser, bank or insurance company who meet certain requirements to be appointed an investment manager for an ERISA-covered plan.

The EBSA said the final rule will apply to investment adviser registration filings due on or after October 25, 2004.  More information on IARD is at .