Application Requirements for Investment Advisers
REGISTRATION OF INVESTMENT ADVISERS (State Registrants) IA Essential Information
Filing fee: $250.00 through electronic filing, Investment Adviser Registration Depository (IARD)
- File electronically – Form ADV through Investment Adviser Registration Depository, (IARD). Please refer to FINRA (www.iard.com) for all applicable systems fees.
The following documents shall be submitted directly to the Alabama Securities Commission:
- Copies of the applicant’s client agreement forms. (Contract / Agreement Guidelines)
- Balance sheet prepared in accordance with GAAP, dated not more than 90 days prior to filing of application. All investment advisers must maintain a minimum net capital of $10,000.00 or post a $50,000.00 surety bond.
- Attached to balance sheet: oath by duly authorized officer stating that such statement is true and correct to the best of their knowledge, information, and belief.
- A statement regarding whether the firm maintains custody and/or discretionary authority should be provided.
- A surety bond in the amount of $50,000.00 on Form U-SB, payable to the State of Alabama if:
- The investment adviser maintains custody of client funds or securities; or
- The investment adviser has discretionary authority over customer accounts; or
- The investments adviser does not maintain the minimum net capital of $10,000.00.
- If the applicant is an out-of-state corporation:
- An undertaking or affidavit as to whether the applicant has branch offices or representatives residing in Alabama.
- A certificate to do business as a foreign corporation is required if the applicant has branch offices or representatives residing in this state. This certificate is available through the Alabama Secretary of State’s office, (334) 242-5324
- Copies of applicant’s brochure if clients will receive a brochure in addition to or instead of Part II of Form ADV
- An undertaking or affidavit stating the number and type, if any, of Alabama clients.
- Submission of Forms U-4 through the IARD System for all investment adviser representatives doing business in Alabama.
- List of all representatives who will be conducting business in Alabama.