The SEC’s Office of Investor Education and Assistance warns investors that scammers are using SEC exempt reporting adviser (ERA) filings to create a false impression of legitimacy and to lure investors into scams, including advance fee fraud. These scammers may falsely tell investors that they are “registered” with the SEC or have a “certificate” from the SEC. An ERA is not registered with the SEC. An ERA is an investment adviser that advises only private funds. Do not trust a purported ERA that offers investment advice directly to individual investors or claims to be registered with the SEC.
ERAs are not allowed to give investment advice directly to individual investors.
An ERA is an investment adviser that can only provide investment advice to private funds, such as hedge funds, venture capital funds, and private equity funds. An ERA legally cannot provide investment advice directly to you, as an individual.
ERAs are not registered with the SEC.
ERAs are not registered with the SEC and the SEC does not issue any type of certificates to ERAs (or registered advisers), but they are subject to certain SEC reporting, recordkeeping, and other obligations. For example, ERAs are required to report some information on Form ADV, but are not required to complete all sections of Form ADV like registered advisers.
You can find information about a specific ERA, including its most recently filed Form ADV, using the “Check Out Your Investment Professional” tool on Investor.gov. For information on how to use our tool, please read: How to Use the Investment Professional Search Tool on Investor.gov.
The SEC does not review the abilities or qualifications of ERAs. Beware of any claims or implications that the SEC has sponsored, recommended, or approved of an ERA, or that the adviser’s abilities or qualifications have been evaluated by the SEC.
ERAs are not subject to some of the regulations that apply to registered advisers, many of which are designed to protect investors. ERAs, however, are subject to the same prohibitions against fraud as registered advisers.
SEC Enforcement Actions. The SEC filed a series of enforcement actions alleging that 38 entities, as so-called exempt reporting advisers, made material misrepresentations in Forms ADV filed with the SEC to falsely portray themselves as legitimate advisory firms to investors. The Forms ADV for these 38 entities have been removed from the Investment Adviser Public Disclosure (IAPD) website. The SEC also alleges that certain defendants were marketed on websites and some of the websites displayed a fake certificate indicating that the entity was registered with the SEC, even though it was not. According to the SEC’s complaints, the fake certificates included the Central Registration Depository (CRD) and SEC file numbers assigned to the entity upon filing its Form ADV, and falsely stated that “SEC RIA permission” was granted to the defendant. Here is an example of one of the certificates that the SEC alleges is fake: 
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Do not trust any individual or firm that claims to be an ERA and directs you to a filing or website as evidence of SEC registration. While some information about ERAs is available through SEC websites, ERAs are not registered with the SEC. If individuals or firms falsely claim they are registered with the SEC, do not trade with them, do not give them money, do not transfer crypto assets to them, and do not share your personal information with them. Submit a complaint and report their misrepresentations to the SEC.
Additional Information
Group Chats as a Gateway to Investment Scams – Investor Alert
Investment Scams Involving Fake Form 4 Filings: Updated Investor Alert
Investor Alert: Beware of False Claims of SEC Registration
Impersonation Schemes | Investor.gov
Resources for Victims of Securities Law Violations | Investor.gov
Report possible securities fraud to the SEC.
If you are an adviser who has questions about your filings on the Investment Adviser Registration Depository (IARD) or the IAPD website, please email IARDLIVE@sec.gov.
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This Investor Alert represents the views of the staff of the Office of Investor Education and Assistance. It is not a rule, regulation, or statement of the Securities and Exchange Commission (“Commission”). The Commission has neither approved nor disapproved its content. This Alert, like all staff guidance, has no legal force or effect: it does not alter or amend applicable law, and it creates no new or additional obligations for any person.
