I. Registration Fees.
- Investment Adviser: $75
- Investment Adviser Representative: $35
II. Financial & Bonding Requirements. An IA is not required to maintain a bond, but it must be solvent. IAs must demonstrate solvency by providing a certified or audited balance sheet dated within 90 days of a firm’s new application.
III. Sole Proprietorships. If an IA is a sole proprietorship, the following must be submitted:
a. Form ADV Parts 1 and 2, via the IARD system
b. Filing fees paid through the IARD system
c. Form U-4 (for all investment adviser representatives) including the sole proprietor
d. Other documents listed under TR 116.2 listed on our Check Sheet for Registration.
IV. De Minimis. An out-of-state IA with no place of business in this state and fewer than 6 clients during the last 12 months is exempt from the registration requirements; however, is required to file a notice by completing Form ADV Part 1.B for the IA and Form U4 for the IAR through the IARD system, and paying the IA and IAR notice filing fee of $75 and $35, accordingly. Lastly, the IA should simultaneously send a letter directly to the Texas State Securities Board claiming the notice filing contained in Texas Rule 116.1(b)(2)(a)(iv) and 116.1(b)(2)(C).
V. Branch Offices. If a registered IA has branch offices within the state, the IA must register each branch office by filing Form BR on the IARD system.
VI. Other Required Documents.
- Financial statements.
- Registration of the Designated Officer who satisfies the minimum qualifications as an IAR (i.e., passed the Series 65).
- Certificate of formation/articles of incorporation.
- Fee schedule.
- Advisory contracts.
- Advisers to hedge funds are required to submit private placement memoranda, partnership agreements, and subscription documents.
For additional information, please contact the state securities administrator.
For a list of common deficiencies found in an Investment Adviser application, please go to http://www.ssb.state.tx.us/Important_Notice/Avoiding_Common_Deficiencies.php.
