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. 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.
IV. Other Required Documents.
- Financial Statements.
- Fingerprints.
- Advisory Contracts.
- Credit Report for IAR of Kentucky IAs.
For additional information, please contact the state securities administrator.
