I. Registration Fees.
- Investment Adviser: $200
- Investment Adviser Representative: $50
II. Financial & Bonding Requirements. If an IA has custody of client funds, the IA must have a minimum net worth of $35,000 or a surety bond for the net worth deficiency rounded up to the nearest $5, 000. If an IA has discretion over client funds, the IA must maintain a minimum net worth of $10,000 or a surety bond for the net worth deficiency rounded up to the nearest $5,000. If an IA has no discretion or custody, the IA must maintain a positive net worth.
III. Sole Proprietorships. If an IA is a sole proprietorship, it must file a U4 and pay registration fees for the IA. Sole proprietors must take and pass the Series 65 or Series 7 and 66, submit fingerprint cards, and attend the office’s new broker/adviser seminar.
IV. Branch Offices. If an IA has branch offices within the state, the IA must register each branch office and pay a registration fee of $50.
V. De Minimis. An out-of state IA is not required to register until it has more than 5 clients.
VI. Other Required Documents.
- Financial Statements.
- Written Supervisory Procedures.
- Copy of firm’s surety/fidelity bond.
- Fingerprints.
- Client Agreements.
- Attend seminars for new advisers.
For additional information, please contact the state securities administrator.
