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

• Setting up your firm’s account on the Investment Adviser Registration Depository (IARD) system
• Acting as liaison with the North Carolina Securities Division
• Facilitating the payment of all North Carolina 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 financial statements directly with the North Carolina Securities Division
• Drafting investment advisory and/or financial planning agreements
• Drafting a compliance manual in conformity with the North Carolina Investment Advisers Act
• Drafting of the privacy notice
• Filing Form U4 for investment adviser representatives

Important Additional Information for North Carolina Registrants:

Financial Statement Requirements

An investment adviser applying for registration in North Carolina who has custody of client funds or securities or who requires payment of advisory fees six months or more in advance and in excess of five hundred dollars ($500.00) per client shall file with the administrator an audited balance sheet as of the end of the investment adviser's fiscal year. Each balance sheet filed must be:

1. Examined in accordance with generally accepted auditing standards and prepared in conformity with generally accepted accounting principles;

2. Audited by an independent public accountant or an independent certified public accountant; and

3. Accompanied by an opinion of the accountant as to the report of financial position, and by a note stating the principles used to prepare it, the basis of included securities, and any other explanations required for clarity.

Every registered investment adviser who has discretionary authority over client funds or securities, but not custody, shall file with the administrator a balance sheet, which need not be audited, but which must be prepared in accordance with generally accepted accounting principles and represented by the investment adviser or the person who prepared the statement as true and accurate, as of the end of the investment adviser's fiscal year.

Every investment adviser that has its principal place of business in a state other than this state shall maintain such capital as required by the state in which the investment adviser maintains its principal place of business, provided the investment adviser is licensed in such state and is in compliance with such state’s minimum capital requirements, if any.

Minimum Net Worth Requirements

Unless an investment adviser posts a bond (see below), an investment adviser registered or required to be registered in the State of North Carolina who has custody of client funds or securities shall maintain at all times a minimum net worth of thirty-five thousand dollars ($35,000.00), and every investment adviser registered or required to be registered the State of North Carolina who has discretionary authority over client funds or securities but does not have custody of client funds or securities shall maintain at all times a minimum net worth of ten thousand dollars ($10,000.00).

Unless otherwise exempted, as a condition of the right to continue to transact business in this state, every investment adviser registered or required to be registered the State of North Carolina shall by the close of business on the next business day notify the administrator if such investment adviser's total net worth is less than the minimum required. After transmitting such notice, each investment adviser shall file by the close of business on the next business day a written report with the administrator of its financial condition, including the following:

1. A trial balance of all ledger accounts;

2. A statement of all client funds or securities which are not segregated;

3. A computation of the aggregate amount of client ledger debit balances; and

4. A statement as to the number of client accounts.

Bonding Requirements

Every investment adviser having custody of or discretionary authority over client funds or securities that does not meet the minimum net worth requirements shall be bonded in an amount of not less than thirty-five thousand dollars ($35,000.00) by a bonding company qualified to do business in this state or in lieu thereof may provide evidence of a deposit of cash or securities in such amount.

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