I. Registration Fees.
- Investment Adviser: $400.
- Investment Adviser Representative: $135.
II. Financial & Bonding Requirements. Any IA requesting registration in Pennsylvania must be solvent. In addition, an IA with discretion must have a minimum net worth of $10,000 and provide an unaudited (prepared in accordance with GAAP) no older than 45 days from the date of filing the application. An IA with custody of client funds and/or securities must have a minimum net worth of $35,000 and provide an audited Balance Sheet (prepared in accordance with GAAP) no older than 45 days from the date of filing the application. If the audited Balance Sheet is as of a date more than 45 days prior to the date of filing the application, it must be accompanied by an unaudited Balance Sheet (prepared in accordance to GAAP), as of a date within 45 days of the application date. Once registered, both discretionary and custodial IA’s must annually file the Balance Sheet (audited if Custodial) within 120 days of their fiscal year end.
III. Sole Proprietorships. If an IA is a sole proprietorship, registration fees must be paid for the IA only. Pennsylvania does not require a sole proprietor to individually file a Form U4 and seek registration as an investment adviser representative. However, the sole proprietor must pass the Series 65 examination or the Series 7 and 66 examinations.
IV. De Minimis. An in-state IA is not required to register if it has fewer than 6 clients anywhere and does not hold itself out to the public as an IA. An out-of-state IA is not required to register if it has 5 or fewer clients in Pennsylvania.
V. Other Required Documents.
- Original Financial statements.
- Original copy of the firm’s surety bond (if applicable).
- Original certification that applicant has read and understands state securities law (if applying for Exam waiver).
- Original contracts and agreements.
- Original code of ethics.
- Original various undertakings (if applicable).
For additional information, please contact the state securities administrator.