I run across compliance stories that make me scratch my head when I find something odd. I just came across another that made me remember one of the quirks of registration with the Securities and Exchange Commission as an investment adviser.
The SEC was after Timothy Sexton and his advisory firm, Bantry Bay Capital. Examiners showed up at Bantry Bays offices and were surprised to find no office. The address was listed at 3465 N Pines Way in Jackson, Wyoming in its Form ADV filing as its principal place of business. The examiners found a UPS Store instead of an operating office.
One aspect of registration between state and SEC registration is that investment advisers in Wyoming register with the SEC, regardless of the amount of assets under management. Some advisers try to sneak into Wyoming. It looks like Bantry Bay had rented a post office box at that UPS Store. That is not enough for a principal place of business.
Wyoming does not have a state level regulator of investment advisers so all Wyoming investment advisers are under SEC jurisdiction.
That will change next year. Wyoming passed a securities law and is implement a regulatory regime for investment advisers. On June 1, 2017, those 21 investment advisers in Wyoming will be required to state registration.
Wyoming will no longer be the wild, wild west for investment advisory firms.
Sources:
- Court Orders CEO of Wyoming Investment Adviser to Appear At Hearing for Failure to Produce Business Records
- Wyoming poised to scrutinize its RIA industry for the first time by Christine Idzelis in InvestmentNews
- The Lure of Wyoming
- Dislocated in Wyoming Again
Buildings in Jackson, Wyoming, located at the crossing of Deloney Avenue and Center Street
By DXR
CC BY SA
