I. Registration Fees.
- Investment Adviser (IA): $300
- Investment Adviser Representative (IAR): $60.
Pursuant to §7-11-203: Both an IA and IAR must be licensed to transact business in the state or be exempt from licensing.
II. Financial & Bonding Requirements. All IAs must prepare and retain financial statements indicating solvency and a positive net worth for a period of not less than five years and make those financial statements available to the Director within 72 hours of any verbal or written request(Rule 209(c)). An IA licensed with the Division must have a minimum net worth of $5,000 (Rule 209(a)-1.D.) . An IA with custody must have a minimum net worth of $25,000 and a surety bond set by order of the director in an amount ranging from $100,000 to $1 million for the adviser and between $10,000 and $100,000 for each associated IAR (Rule 215 (b)-1). IAs with custody must comply with Rule 206(4)-2 under the Investment Advisers Act of 1940, and the provisions of Rhode Island Uniform Securities Act and all relevant rules promulgated thereunder.
III. De Minimus. An IA with no place of business in this state is not required to register until it has more than 5 clients.
IV. Other Required Documents
- ADV Part 2A and 2B (Submitted through IARD);
- Proof of Net Worth (Submitted to the Department);
- Any Contracts and/or Account Agreements (Submitted to the Department);
- Privacy Policy (Submitted to the Department).
For additional information, please contact the state securities administrator.
