IAA begins accepting members not registered with the SEC

The Investment Adviser Association has begun accepting “associate members” that are not registered with the Securities and Exchange Commission as investment advisory firms.
The IAA, which has about 500 full member advisory firms, accepted 12 associate members in December.
The new associate-member program will help the IAA “expand its network” of organizations that are interested in the issues IAA follows, said senior counsel Monique Botkin. The idea of starting an associate membership program had been contemplated for several years, she said.
Associate members, which can include state-registered advisory firms, law firms, service providers, publications and other groups with an interest in the investment advisory business, pay $1,500 per year and receive fewer services than full members, according to IAA counsel Paul Glenn. Full IAA members pay dues of at least $2,500 per year up to a maximum of $17,000 a year, depending on assets under management, he said.
The new associate members are law firms Alston & Bird LLP, Debevoise & Plimpton LLP, Morgan Lewis & Bockius LLP, Seward & Kissel LLP, as well as Chubb Specialty Insurance, Starkweather & Shepley Insurance Brokerage Inc., U.S. Bankcorp Fund Services LLC, and compliance and software firms Ascendent Compliance Management Inc., Financial Tracking LLC, HedgeOp Compliance LLP, Advent Software Inc. and Professional Compliance Assistance Inc.
The IAA’s move could create more competition among adviser associations as trade organizations struggle to cope with falling revenue in the economic downturn. However, the groups that represent financial advisers also have different focuses. “I don’t see how that could compete with NAPFA,” said Ellen Turf, chief executive of the National Association of Personal Financial Advisors. NAPFA concentrates on comprehensive financial planning, IAA does not, she said.