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Federal Covered Advisor

What is 'Federal Covered Advisor'

An investment advisor in the United States that manages more than $25 million in assets for other investors or who is providing services in 30 or more states. Federal covered advisors are required to be registered and file annually with the U.S. Securities and Exchange Commission (SEC). In addition, federal covered advisors must meet specific regulations set forth by individual states.


Also called federal covered investment advisor.




Explaining 'Federal Covered Advisor'

Federal covered advisors are required to file a notice with the state in which they plan to conduct investment advisor business. A state covered investment advisor is an investment advisory firm that has assets under management of less than $25 million. States require federal covered advisors to file a notice if the firm has six or more clients who are residents of that state, or if the firm is operating a place of business in that state.


The Investment Advisors Supervision Coordination Act, which became effective on July 8, 1997, was established to reallocate federal and state regulation of investment advisors. The Act was designed to make states responsible for smaller advisors and the SEC responsible for larger advisors.


Further Reading


Dangerous interconnectedness: economists' conflicts of interest, ideology and financial crisis
academic.oup.com [PDF]
… and Second District Highlights, “a regional supplement to Current Issues covering financial and economic … the rules were: (1) the article was assigned to the Federal Reserve category … current or previous staff economist; current or previous visiting scholar, consultant, or advisor) …

Economic analysis by federal financial regulatorsEconomic analysis by federal financial regulators
heinonline.org [PDF]
… and Second District Highlights, “a regional supplement to Current Issues covering financial and economic … the rules were: (1) the article was assigned to the Federal Reserve category … current or previous staff economist; current or previous visiting scholar, consultant, or advisor) …

The economic importance of financial literacy: Theory and evidenceThe economic importance of financial literacy: Theory and evidence
www.aeaweb.org [PDF]
… and Second District Highlights, “a regional supplement to Current Issues covering financial and economic … the rules were: (1) the article was assigned to the Federal Reserve category … current or previous staff economist; current or previous visiting scholar, consultant, or advisor) …

Economic effects of federal credit programsEconomic effects of federal credit programs
www.jstor.org [PDF]
… and Second District Highlights, “a regional supplement to Current Issues covering financial and economic … the rules were: (1) the article was assigned to the Federal Reserve category … current or previous staff economist; current or previous visiting scholar, consultant, or advisor) …


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