I. Registration Fees.
- Investment Adviser: $100.
- Investment Adviser Representative: $55.
II. Financial Requirements. If an IA has custody of client funds, the IA must have a minimum net worth of $35,000. If an IA has discretion over client funds, the IA must maintain a minimum net worth of $10,000. If an IA has no discretion or custody, the IA must be solvent. A balance sheet is required for registration.
III. Sole Proprietorships. If an IA is a sole proprietorship, registration fees are not required for the IAR. A form U4, however, must be filed for the IAR. If the adviser is an out-of-state adviser, they must be registered or qualified to transact business as an IAR in the state of their principal place of business.
IV. De Minimis. An out-of-state IA is not required to register until it has more than 5 clients.
V. Other Required Documents.
- Financial Statements.
- Investment Advisory Contracts.
- New account form that includes 3rd party trading authorization.
- Solicitors disclosure document & agreement.
- POAs and other documents evidencing the vesting of discretionary authority.
- Advisory client contracts.
- Documents supporting performance statements.
- Policy and procedures manual.
- Written supervisory procedures.
- Written compliance procedures.
For additional information, please contact the state securities administrator.