New Michigan Law for Investment Advisers (12/25/2009)

Michigan has adapted the Uniform State Act on investment advisers and requires that nearly all individuals employed by even a federally registered investment advisory firm who provide investment advice to clients in Michigan must file a Form U-4 and pass an examination such as S65, the Uniform Investment Advisers State Law exam.  New Century is federally registered, but our Investment Committee team members had taken and passed the exam as a matter of course, years ago.  However, the way the Act was written they each had to pass it again during the two years preceding filing their U-4's, which they did in February, 2010.

Portfolio Manager Mark Lahti noted that his exam included an extraordinary number of questions about insurance policies and insurance company annuities.  New Century provides no advice on either, and they require an insurance license to sell.  Go figure.