I. Registration Fees.
- Investment Adviser: $150.
- Investment Adviser Representative: $40.
II. Financial & Bonding Requirements. All IAs must have a positive net worth. IAs with discretion must maintain a minimum net worth of $10,000. IAs with custody must maintain a minimum net worth of $35,000. Audited financial statements are required for IAs with custody. Financial statements must be GAAP compliant and dated within the last 90 days.
An IA who does not meet the minimum net worth requirements stated above must be bonded in the amount of the net worth deficiency rounded up to the nearest $5,000. The form of the bond shall be determined by the director, issued by a company qualified to do business in this state and shall be subject to the claim of all clients of the investment adviser regardless of the client’s state of residence.
III. Sole Proprietorships. If an IA is a sole proprietorship, the name appearing on the license will be the individual’s legal name and thereforeregistration fees must be paid for only the IA.
IV. Branch Offices. If an IA conducts business at locations other than its principal office, the IA must submit a Form BR listing these locations.
V. De Minimis. An out-of state IA is not required to register until it has more than 5 clients.
VI. Privately Pooled Investment Vehicles. Advisers to private investments vehicles must also file all offering documents:
- Private placement memorandum.
- Subscription agreement.
- Limited partnership (or LLC) agreement.
- Independent party agreement.
- Agreement with auditor.
- Custodial and/or prime brokerage agreement.
VII. Other Required Documents.
- A list of investment adviser representatives registering in Washington state (including a qualifying principal).
- Client contracts.
- Any contract(s) the IA may have with other investment adviser(s).
- Other documentation to support net worth.
- Personal guarantee-subordination agreement (if applicable).
- Surety bond (if applicable).
For additional information, please contact the state securities administrator.