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Investment Adviser Initial Registration Requirements
The same instructions apply to RIA firms switching from SEC to State Registration.
1. File Form ADV, Parts 1 and 2, on IARD, and apply for registration in Indiana. The fee is $100 for Registered Investment Adviser (“RIA”) firms and $25 for new Investment Adviser Representatives (“IAR”).
• “Switch” firms will likely already have at least one registered individual, but they may need to register any additional IARs.
• If new IARs are being added to an RIA firm, they must have passed either the Series 65 exam OR BOTH the 7 and 66 exams. Certain professional designations will be accepted in lieu of the exam requirements. If an individual holds one of the following designations, upload the current information to the individual’s CRD record: CFP, ChFC, PFS, CFA, or CIC.
2. Include a current balance sheet (not older than 60 days) of the RIA firm to the Division. If the firm has custody of client funds or securities or bills clients more than $500 and more than six months in advance, the balance sheet must be audited. Otherwise, an unaudited balance sheet will suffice.
3. If the firm maintains its books and records at a location other than the principal location, or if the firm is located outside of Indiana, complete the Books and Records Location Form, and return to the Division.
4. Provide copies of all contracts/agreements offered to clients to the Division.
IMPORTANT: The most common deficiency that holds up a registration is issues with the fee information. All contracts/agreements must disclose all fees that will be charged, and the fee information in the contracts/agreements MUST agree with the fee information disclosed in the ADV Part 2. Dollar amounts must be disclosed for hourly fees, fixed fees, financial planning fees, consulting fees, etc. If the fees are a set percentage based on Assets Under Management (“AUM”), the specific “tiers” must be disclosed. See example below.
For example only: If the RIA charges between .50% and 2.50% based on AUM, show the dollar values assigned to each “tier” such as:
AUM------- up to $500,000 Fee is ---------- 2.50%
$500,001 to $1,000,000 2.0%
$1,000,001 to $2,000,000 1.50%
$2,000,001 to $3,000,000 1.0%
Over $3,000,000 .50%
All deficiencies or requests for additional information will be emailed to the firm’s contact person.
Additional information is included below to help you with the registration process. If you have any questions, you may direct them to:
Doreen L. Fuery
Indiana Secretary of State Connie Lawson
Securities Division, Room E111
302 West Washington Street
Indianapolis, IN 46204
DE MINIMUS EXEMPTION FROM REGISTRATION AS AN INDIANA IA:
In 2008 the Indiana Securities Act was amended to modify the existing de minimus clause exemption from registering as an investment adviser doing business in Indiana.. See IC 23-19-4-3 (b) (2).
The following persons are exempt from the registration requirement:
- The IA is without a place of business in this state and
- The IA has had no more than five (5) clients in this state during the previous 12 months.
Professional Designations Accepted in lieu of Series 65 or Series 7 & 66 Exams
- 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.)
- Chartered Financial Consultant (ChFC) awarded by the American College, Bryn Mawr, Pennsylvania
- Personal Financial Specialist (PFS) awarded by the American Institute of Certified Public Accountants
- Chartered Financial Analyst (CFA) awarded by the Institute of Chartered Financial Analysts
- Chartered Investment Counselor (CIC) awarded by the Investment Counsel Association of America, Inc.
Books and Records Location Form (PDF Format)