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Is a Surety Bond Required for a Kentucky Investment Adviser?

A

The State of Kentucky Public Protection Cabinet regulates the Department of Financial Institutions which includes Investment Adviser Registration.

Kentucky Code 292.330 details the laws for investment adviser’s registration. The registration process requires the following:

1. Payment of a filing fee and application for registration through IARD with any required attachments.
2. Provide a copy of the client advisory contract.
3. Provide proof of business solvency.
4. A financial statement if the applicant has custody or discretionary authority over client funds.
5. If the applicant has custody or discretionary authority of client funds, a minimum business net worth of $35,000 is required. If the net worth is less than $35,000 but greater than $10,000, the applicant must obtain a $25,000 surety bond.
6. If the applicant has discretionary authority of client funds but not custody, the applicant must have a net worth of $10,000 or obtain a $10,000 surety bond.
7. De Minimis- if the applicant physical business address is out of state, it is not necessary to register until there are five or more clients.

How Much Will This Bond Cost?

The premium that you pay for a Kentucky Investment Adviser bond is dependent on credit and the bond amount required.

Did You Know?

You must have a passing score of 72% for the Series 65 exam and a score of 75% for the Series 66 exam.

Information:

Kentucky Registration of Broker-Dealers, Agents, Investment Advisers and Investment Adviser Representatives


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