The Arkansas Securities Department is responsible for overseeing various securities programs and has the responsibility of insuring that investment advisers register, comply with state laws, as well as, handling of consumer complaints and providing consumer education.
One of the requirements for registration is obtaining an Investment Advisor Surety Bond.
The Securities Act and Rules of the Arkansas Securities Commissioner require the following:
1. Payment of a filing fee and application for registration through IARD with any required attachments.
2. Provide a copy of applicants investment advisory contract.
3. Submit a financial statement meeting GAAP standards and attestation that the information is correct. An audited financial statement and a unaudited balance sheet not more than 30 days old is required for an investment adviser company that has been in operation a year or more.
4. A $50,000 surety bond is required if the investment adviser has custody of client funds or securities.
5. A bond is not needed if the applicant’s business is located out of state and has met the requirements of said state in which the investment adviser is registered or licensed.
6. An Independent Contractor Acknowledgement Form.
7. A minimum net capital in the amount of $12,500 that meets Ark. Code § 23-402-303.02.
8. De Minimis- applicants are exempt from registration if they do not have a physical business location in Arkansas and have less than six clients that live in Arkansas not including institutional investors during the preceding 12-month period.
The premium that you pay for an Arkansas Investment Adviser Bond is dependent on credit.
Most states require the Series 63 examination even if you have already passed the FINRA examination.
You can Apply online or contact our Surety Bond Specialists today at:
Hours: 8:00-5:00 CST, Monday through Friday