What must a Financial Compliance Advisor (FCA) do if they conduct business in states with six or more retail clients?

A Financial Compliance Advisor (FCA) operating in states with six or more retail clients is required to give notice or file a notice with the state regulatory authority. This requirement is in place to ensure that the FCA complies with state laws regarding registration and operating standards, which vary by state.

When an FCA has six or more retail clients in a state, it triggers the need for greater regulatory oversight. The notice allows state regulators to be aware of the FCA's activities and clientele, promoting transparency and accountability. Filing this notice is a formal acknowledgment of the FCA's client base and an indication of their intent to conduct business in those states in accordance with applicable regulations.

This requirement ensures that financial professionals operating in the retail space are properly registered and are meeting the necessary legal obligations, thus protecting both the clients and the integrity of the financial system.