Kentucky

Back to state index

I. Registration Fees.

  • Investment Adviser: $100.
  • Investment Adviser Representative: $50.

II. Financial & Bonding Requirements. If an IA has no discretion or custody, the IA must be solvent and have a positive net worth. If an IA has discretion but not custody over client accounts and less than $25 million under management, the IA must maintain a minimum net worth of $10,000 of which $10,000 may be a surety bond. If the IA has discretion but not custody over client accounts and more than $25 million in assets under management, it must have a minimum net worth of at least 0.001 of AUM of which 100% may be a surety bond. If an IA has custody of client funds and less than $25 million under management, the IA must have a minimum net worth of $35,000 of which $25,000 may be a surety bond. If the IA has custody of client funds and over $25 million in assets under management, the IA must have a minimum net worth of .0015 of AUM of which any amount over $10,000 may be a surety bond. If an IA has custody due entirely to advising a pooled investment vehicle, the IA must comply with the capital requirement associated with discretionary authority.

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.

IV. De Minimis. An out-of state IA with no place of business in Kentucky is not required to register until it has more than 5 clients in Kentucky.

V. Other Required Documents.

  • Financial Statements.
  • Fingerprints.
  • Advisory Contracts.
  • Credit Report for IAR of Kentucky IAs.

For additional information, please contact the state securities administrator

Back to state index