Investment Adviser Registration Requirements

 

The state of Maryland provides additional information here.

How to Register as an Investment Advisor in Maryland

• FINRA Entitlement Paperwork: To initiate the process of becoming a registered investment advisor in Maryland, individuals must first apply to the Financial Industry Regulatory Authority (FINRA) to create an account (Entitlement) for their WebCRD/IARD online system (the web application for the registration of RIA and its representatives). FINRA does not regulate or supervise RIAs, but the State of Maryland uses FINRA’s WebCRD/IARD system to process applications.
• Form ADV Part 1: Electronically file Form ADV through IARD. Form ADV Part 1 discloses information about the RIA, including its ownership structure, client base, operational practices, any disciplinary incidents involving the advisor or their employees, and affiliations. This form acts as the online portal for submitting additional documentation within the system.
• Form ADV Part 2A: Detail your RIA’s fee structure, services, disciplinary disclosures, and other firm information in Form ADV Part 2A. Form ADV Part 2A is also known as the Firm’s Disclosure Brochure.
• Form ADV Part 2B: Form ADV Part 2B provides information about the advisor, such as their education, employment history, potential conflicts of interest, and any disciplinary actions.
• Minimum Net Capital for most advisers: According to state regulations, "An IA that has custody of client funds, assets, or securities, or requires payment of advisory fees more than 6 months in advance and in excess of $500 per client, shall: Maintain at all times a minimum net capital of $20,000, or minimum tangible net assets of $35,000; or Be bonded in the amount of $10,000 or deposit cash or any other equivalent form of security as the Commissioner may permit in the amount of $10,000"
  
  Regulation: "B. An investment adviser registered or required to be registered in this State that has custody of client funds, assets, or securities, or requires payment of advisory fees more than 6 months in advance and in excess of $500 per client, shall:
  
  
• • Maintain at all times a minimum net capital of $20,000, or minimum tangible net assets of $35,000; or
  • Be bonded in the amount of $10,000 by a bonding company qualified to do business in this State, or deposit cash or any other equivalent form of security as the Commissioner may permit in the amount of $10,000.

• Surety Bonds: Permitted in lieu of minimum net capital requirements and only required if the firm has custody.
• Fees: Submit a $300 fee for the firm's registration through FINRA IARD.

 

Initial Registration

• File Form ADV Parts 1 and 2 electronically through the IARD system.
• Ensure that at least one member listed on Form ADV Part 1 - Schedule A complies with the state’s examination requirements.
• Pay filing fee of $300.00. Fees are paid through IARD system.
• Submit any other information requested by the state’s Securities Division.

 

For SEC Notice Filing

• • • • • • • • • • • File Form ADV Parts 1 and 2 electronically through the IARD system.
                    • Pay filing fee of $300.00. Fees are paid through IARD system.

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