I. Registration Fees.
- Investment Adviser: $50.
- Investment Adviser Representative: $50 .
II. Financial & Bonding Requirements. All IAs must be solvent and maintain a positive net worth. IAs with discretion over customer funds must maintain either a minimum net worth or surety bond of $10,000. IAs with custody over customer funds must maintain either a minimum net worth or surety bond of $35,000. Audited financial statements are required for IAs that have custody of client funds or securities within 90 days following the end of the adviser’s fiscal year. The filing must include balance sheet, statement of income or operations, statement of shareholder equity, and statement of cash flows.
III. Sole Proprietorships. If an IA is a sole proprietorship, registration fees must be paid for both the IA and the IAR. In addition, a form U4 must be filed for the IAR.
IV. De Minimis. An out-of-state IA with no place of business in Utah is not required to register until it has more than 5 clients during the preceeding 12-month period, other than certain types of non-retail clients. (See Utah Code Section 61-1-3)
V. Other Required Documents.
- Designation of a supervisor.
- Depending on the application, the Division may request:
- Investment advisory agreements (or similar contracts).
- Solicitor agreements.
- Copies of advertising materials.
- Copies of private placement memoranda and subscription agreements (or similar offering documents).
- Written Supervisory Procedures
- Cybersecurity Policies
- Documentation regarding CRD/IARD Disclosures
For additional information, please contact the state securities administrator.