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Notice To Investment Advisers Seeking Registration in Indiana

Effective June 15, 2002, all new investment adviser registrations must be done through the Investment Adviser Registration Depository (IARD).

You will file Part I and Part II of Form ADV electronically on the IARD through their website at http://www.iard.com. You can also file the Uniform Consent to Service of Process on the IARD. Please do not send this information to the Division in paper form.

Before you are approved for registration, you must send the following items to the Division:

1. Copies of any client agreements or contracts you intend to use; and
2. Current balance sheet for the investment adviser. If the investment adviser will have custody or possession of client funds or securities, or bills clients more than $500 and more than six months in advance, then the balance sheet must be audited by a certified public accountant.

Any investment adviser representatives (RAs) of the investment adviser also must be registered and a Form U-4 for each RA filed on Web CRD at https://www.webCRD.com.

All registration fees due to Indiana are paid through an account the investment adviser establishes with NASDR.

Steps to become an Indiana (State-Covered) Registered Investment Adviser (IA) or Investment Adviser Representative (RA)

Under the Indiana Securities Act, your business entity (sole proprietorship, general partnership, limited partnership, limited liability partnership, limited liability company, corporation, professional corporation, etc.) is the registered Investment Adviser (IA). Any person affiliated with the business entity and providing advice about the purchase and management of securities will be an Investment Adviser Representative (RA). Note: As an individual, a sole proprietor must meet all the registration requirements of an RA but does not have to pay a separate RA registration fee. However, any other RAs working for the IA need to register as such and pay the RA registration fee.

Initial registration fees are $100.00 for the business entity (IA) and $25.00 for each representative (RA.) Annual renewal fees are $50.00 for the IA and $25.00 for each RA. All fees are paid to Indiana through an account established and maintained by the investment adviser through the NASDR.

1. Obtain Form ADV and its instructions, which can be obtained at the following web site: http://www.sec.gov/about/forms/formadv.pdf. The instructions tell you how to file the form electronically. This web site allows you to download the form to your computer and print it out. If this does not work, the form and its instructions in paper copy may be obtained by contacting the SEC Publications Office directly at telephone number (202) 942-4046. The SEC does not charge a fee for the forms. The Indiana Securities Division does not stock these forms.
2. Go to the web site www.iard.com to obtain the entitlement forms to register on the IARD. Complete and send these forms to the address specified on them. Do not send these forms to the Securities Division. This web site also has useful information to help you file electronically.
3. Once you get entitled to use the IARD, have been issued a CRD number for your IA, and have established and funded an account with the NASDR, you may begin the registration process. Part I of Form ADV (and its supporting schedules) will be filed electronically on the IARD. As of April, 2007, you will also file Part II electronically. After filing the ADV electronically, you can make any changes to it electronically as well..
4. You must also file on the IARD the Investment Adviser Execution Page(s) for the "Appointment of Agent for Service of Process." This replaces the old Form U-2 that IAs once filed in paper form.
5. In addition to sending Part II of Form ADV to the Securities Division, you also must send copies of any client agreements or contracts you intend to use and a balance sheet for the business entity (IA). This balance sheet does not need to be audited unless the investment adviser (1) will have custody or possession of clients' funds or securities or (2) bills clients more than $500 and more than six months in advance. Note: The filing of a balance sheet is an annual requirement of all investment advisers registered in the State of Indiana. Annual balance sheets must be sent to the Division within 120 days of the end of the IA's fiscal year.
6. Once the IA has filed electronically, its investment adviser representatives (RAs) should be registered on Web CRD at https://www.webCRD.com. This involves filing a Form U-4 electronically for each RA. The Web CRD system will provide a screening to make sure each RA meets the registration requirements.
7. When all information is received, the IA application will be reviewed at the Securities Division. If additional information is needed, the IA will be contacted. When the application is approved, the approval will appear on the IARD, and the IA will receive a Certificate of Investment Adviser Registration from the Division.

Additional information is included below to help you with the registration process. If you have any questions, you may direct them to:

Sally Spiers, Examiner
Indiana Secretary of State Todd Rokita, Securities Division
Indiana Government Center South - E-111
302 W. Washington Street, Indianapolis, IN 46204
317-232-0111; 317-233-3675 (fax)
sspiers@sos.in.gov

DE MINIMUS EXEMPTION FROM REGISTRATION AS AN INDIANA IA:

In 1997, the Indiana Securities Act was amended to modify the existing de minimus clause exemption from registering as an investment adviser doing business in Indiana to read: "…(c) It is unlawful for a person to transact business in this state as an investment adviser or an investment adviser representative unless…(3) the person during the preceding twelve (12) months has had less than six (6) clients who are residents of Indiana." See IC 23-2-1-8(c)(3).

Professional Designations Accepted in lieu of Series 65 or Series 7 & 66 Exams

1. Certified Financial Planner (CFP) awarded by the International Board of Standards and Practices for Certified Financial Planners, Inc. (now called the Certified Financial Planner Board of Standards.)
2. Chartered Financial Consultant (ChFC) awarded by the American College, Bryn Mawr, Pennsylvania
3. Personal Financial Specialist (PFS) awarded by the American Institute of Certified Public Accountants
4. Chartered Financial Analyst (CFA) awarded by the Institute of Chartered Financial Analysts
5. Chartered Investment Counselor (CIC) awarded by the Investment Counsel Association of America, Inc.