Our “turn-key” investment adviser registration program for the State of California includes:

• Setting up your firm’s account on the Investment Adviser Registration Depository (IARD) system
• Acting as liaison with the California Corporations Commissioner
• Facilitating the payment of all California state registration fees
• Preparing and filing Form ADV Part 1 via the IARD system
• Preparing and filing Form ADV Part II via the IARD system
• Filing the California Corporation (or Limited Liability Company) Securities Filing
• Filing the Statement of Financial Condition and worksheet
• Completing Customer Authorization of Disclosure of Financial Records Form
• Completing Statement of Citizenship, Alienage, and Immigration Status (as applicable)
• Drafting and filing investment advisory and/or financial planning agreements
• Drafting a compliance manual in conformity with the California Code of Regulations
• Drafting of the privacy notice
• Filing Form U4 to register investment adviser representatives

Important Additional Information for California Registrants:

Financial Documents

A Statement of Financial Condition is required if an investment adviser registered in the State of California will have custody of client funds or securities, discretionary authority over client funds or securities, or accept prepayment of more than $500 per client and six or more months in advance. A Statement of Financial Condition (Balance Sheet) and a worksheet that demonstrates compliance with the capital requirements as found in the California Code of Regulations §260.237.2 and Verification Form should be filed directly with the California Corporations Commissioner. 

The Balance Sheet should be dated no later than 45 days prior to the filing of the application and prepared in accordance with generally accepted accounting principles. The balance sheet need not be audited. 

For the worksheet to demonstrate compliance with the minimum financial requirements, an applicant should use the Minimum Financial Requirements Worksheet (Form 260.237.2). 

Minimum Financial Requirements

Any state-registered investment adviser with its principal place of business in California is subject to minimum financial requirements if the investment adviser (i) has custody of client funds or securities, (ii) has discretionary authority over client funds or securities or (iii) accepts prepayment of more than $500 per client and six or more months in advance.

1. An investment adviser who has custody of client funds or securities must maintain at all times a minimum net worth of $35,000.  

2. An investment adviser who has discretionary authority over client funds or securities but does not have custody of client funds or securities must maintain at all times a minimum net worth of $10,000.

3. An investment adviser who accepts prepayment of more than $500 per client and six or more months in advance must maintain at all times a positive net worth.

An investment adviser with its principal place of business in a state other than California should maintain minimum capital as required by the state in which it maintains its principal place of business, provided the investment adviser is licensed or registered in such state and is in compliance with such state’s minimum capital requirements.  If the investment adviser is not licensed or registered in the state where it maintains its principal place of business, it is subject to California’s minimum financial requirements.

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Please call us toll free at 888-798-2930 for more information about our California “Turn-Key” Registration Program.