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Division of Securities
INVESTMENT ADVISER
Requirements to Maintain Registration
FILING
REQUIREMENTS TO CONDUCT BUSINESS IN FLORIDA
EXEMPTIONS AND EXCEPTIONS FROM FILING REQUIREMENTS FOR ALL ADVISERS
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If your principal place
of business is located outside the state of Florida, you
may be eligible for exemption from registration under the National
Di Minimis Standard which provides an exemption from state registration
requirements for an investment adviser who: (1) does not have a
place of business located within that state, and (2) during the
preceding 12-month period has had fewer than 6 clients who are residents
of that state.
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Any other exemptions
or exceptions from registration can be found in Chapter 517, Florida
Statutes. Section 517.171, F.S., provides that the burden of establishing
the right to any exemption shall be upon the party claiming the
benefit of such exemption.
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There is no requirement
to notify the State where an exemption or exception from filing
is claimed.
APPLICATION REQUIREMENTS FOR AN INVESTMENT ADVISER
Submit all forms to:
NASD/IARD
Phone No: (240) 386-4848
Website:
www.iard.com
Application Fee:
$200 - Paid through IARD
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Form ADV: Submitted through
IARD
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Designation of a Qualifying
Principal: A completed application and fee must be filed at the
same time as the firm application to register at least one associated
person as a Qualifying Principal. Refer to the "Associated Person
of Investment Adviser Application Requirements" for more information.
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Financial Statements:
[This requirement applies only to Investment Advisers whose principal
place of business is in Florida] Financial statements must include
a balance sheet. Statements shall be prepared in accordance with
Generally Accepted Accounting Principles (GAAP), and shall be dated
within 90 days of the date of filing with the Office. Financials
must be audited or unaudited, as explained below.
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Unaudited Statements:
If client funds and/or securities are not held, and advisory fees
are not prepaid six months or more in advance and in excess of $500
per client, financials must evidence net capital (calculated as
assets minus liabilities) of at least $2,500. Subordinated liabilities
cannot be excluded using this method to compute net capital.
Unaudited financials must be certified as true and correct by an
authorized person, and notarized.
Audited Statements :
If client funds and/or securities are not held, and advisory fees
are not prepaid six months or more in advance and in excess of $500
per client, but applicant elects to compute net capital as prescribed
by SEC Rule 15c3-1, financials must evidence net capital of at least
$5,000 calculated as prescribed.
If client funds or securities
are held or advisory fees are prepaid six months or more in advance
and in excess of $500 per client, financials must evidence net capital
of at least $25,000, calculated as prescribed by SEC Rule 15c3-1.
Notarized statement of
compliance: Submit a notarized statement that your firm is familiar
with, and is currently in compliance with, the investment adviser
regulations of the state where your principal place of business
is located (home state).
Additional information
as required: The Office has the authority to request additional
information as it deems necessary during the application process.
REQUIREMENTS FOR MAINTAINING REGISTRATION AS
AN INVESTMENT ADVISER
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Amendments to Form ADV.
All registered investment advisers shall submit changes to the Form
ADV via IARD within thirty (30) days of such change. This includes
information relating to ownership, disciplinary matters, and financial
condition.
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Financials. [This requirement
applies only to Investment Advisers whose principal place of business
is in Florida] All statements must include at least a balance sheet
and income statement. Statements shall be prepared in accordance
with Generally Accepted Accounting Principles (GAAP), and shall
be filed annually within 90 days after the firm's fiscal year end.
Financials must be audited or unaudited as explained above.
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Branch Office registration.
For any location in Florida required to be registered as a branch
office pursuant to Rule 69W-200.001, F.A.C., approval must be obtained
from the Office through the branch office application process
prior to operation of any such office.
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Registration of associated
persons. All individuals defined as an Associated Person pursuant
to Rule 69W-200.001 F.A.C. should be registered unless otherwise
exempt. Applications for such persons must be filed and approved
prior to such person conducting business requiring registration
with the investment adviser. Every investment adviser must maintain
at least one registered Principal with the Office at all times.
Should the sole Principal be terminated, another Principal must
be registered within thirty (30) days after such termination.
Renewal requirements
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Firms and Agents: Renewal
for firms and agents is conducted in Florida on a calendar year-end
basis and the renewal deadline is December 31st of each year. The
renewal fee of $200 for the firm and $30 for each associated person
is assessed and collected by CRD. It is incumbent upon the
registrant, not the Office, to ensure that the renewal payment is
submitted timely.
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Branches: The Renewal
deadline for branch office registration renewal is December 31st
of each year. The renewal fee of $100 per branch is assessed and
collected by CRD. It is incumbent upon the registrant, not the Office,
to ensure that the renewal payment is submitted timely.
NOTE:
This information is not a comprehensive summary of the rules and regulations
governing compliance with Florida law. It is merely a checklist to assist
registrants with filing requirements.
Refer
to Chapter 517, F.S., or contact the Office, for more information.
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