Attorney General Matthew J. Platkin and the Bureau of Securities within the Division of Consumer Affairs have announced the commencement of their annual investment adviser examination. This examination serves as a risk assessment tool for nearly 800 New Jersey-registered investment adviser firms managing clients’ investment accounts in the state.
The Bureau’s role includes regulating New Jersey’s securities industry, and this examination gathers information on firm organization, business practices, investment concentration, and representatives associated with the firms. Attorney General Platkin emphasized the importance of this proactive oversight, stating, “New Jersey’s nationally recognized leadership in investor protection is due, in part, to its proactive oversight of emerging trends in the investment landscape.”
Firms are required to respond to questions about their business activities each year. These questions cover portfolio composition, compliance with regulatory requirements, and customer complaints. The questions are updated annually to reflect changes in the industry and examination priorities such as emerging technologies and digital assets.
Elizabeth M. Harris, Acting Director of the Division of Consumer Affairs, highlighted the significance of these examinations: “Investment advisers are often entrusted with the life savings meant to support individuals in their older years or create a better future for their families.”
This year’s examination focuses on ensuring that firms monitor their representatives’ outside business activities to identify potential conflicts of interest. Keith A. Alt, Acting Bureau Chief, noted that they are investigating whether firms have policies specifically addressing outside business activities: “We want to make sure that investment firms of all sizes are making disclosure of outside business activities front and center in their fiduciary obligation to clients.”
The 2025 written examination is available on the Bureau’s website and must be completed electronically by June 18, 2025. Non-compliance may result in administrative action under N.J.A.C. 13:47A-14.16.
The Bureau’s mission is to protect investors from fraud and regulate New Jersey’s securities industry. Investors are encouraged to verify financial professionals’ registration status and disciplinary history through the Bureau by calling toll-free at 1-866-I-INVEST (1-866-446-8378) or visiting their website.
