Investment Adviser Registration Requirements

 

The state of Michigan provides additional information here.

The application for investment adviser registration, for firms domiciled in Michigan, is a two-part. It involves the electronic filing of Form ADV Part I, ADV Part 2, and other documents. The examination process varies depending on the complexity of the Applicant's business model.

Step 1: IARD Entitlement Process

Electronically file Form ADV Part I and Part 2 using the Investment Adviser Registration Depository (IARD) System. Download and complete the IARD entitlement forms for state registration. The IARD entitlement process is managed by the Financial Industry Regulatory Authority (FINRA). Questions regarding the entitlement forms or process should be directed to the IARD Call Center at 240-386-4848.

Payment of the $200.00 application fee must be made through the IARD at the time of the electronic filing of Part I Form ADV. DO NOT SEND APPLICATION FEES TO CORPORATIONS, SECURITIES AND COMMERCIAL LICENSING BUREAU.

Step 2: CSCL Examinations Process

Upon completion of the entitlement process and Form ADV Part I and Part 2, the IARD will electronically notify the State of Michigan and a letter and/or email from CSCL will be sent to you, the Applicant.

Investment Advisory Contract

Provide a copy of all investment advisory contracts the Applicant will use for Michigan clients.

• Note that investment advisers, investment adviser representatives, or federal covered investment advisers shall not enter into, extend, or renew any investment advisory contract unless it provides in writing all of the following:
• The services to be provided, the term of the contract, the investment advisory fee, the formula for computing the fee, the amount of prepaid fee to be returned in the event of termination or non-performance of the contract, and any grant of discretionary power to the investment adviser, investment adviser representative, or federal covered investment adviser.
• That no assignment of the investment advisory contract may be made by any investment adviser, investment adviser representative or federal covered investment adviser without the consent of the other party to the contract.
• That the investment adviser, investment adviser representative, or federal covered investment adviser, if a partnership, shall notify the other party to the investment advisory contract of any change in the membership of the partnership within fifteen (15) days after the change.

Balance Sheet

Provide an accrual basis balance sheet in conformity to Generally Accepted Accounting Principles (GAAP) that is no older than 45 days. It must be signed as to its accuracy by an officer, partner, member, or sole proprietor.

The accrual basis accounting method recognizes assets when they are earned (but not necessarily collected) and records liabilities when they are incurred (but not necessarily paid). This is different than the cash basis accounting method, which recognizes revenues when they are collected and expenses when they are paid.

 

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 $200.00. 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 $200.00. Fees are paid through IARD system.

Ready to Get Started? Set up an Introductory Call