The State of New Mexico Regulation & Licensing Department, Securities Division has the responsibility of overseeing Investment Adviser licensing, consumer protection and investor education, enforcement of securities laws, and compliance of securities transactions.
New Mexico Uniform Securities Act 58-13C Article 4 sets forth investment adviser registration requirements and exemptions.
The following requirements must be met for the registration process:
1. Payment of a filing fee and application for registration through FINRA-IARD with any required attachments.
2. Sample copies of a written client agreement.
3. Submit Form U4 with a list of investment adviser representatives of the company.
4. Submit a financial statement. If there will not be custody of client funds, an unaudited financial statement less than 90 days old is acceptable.
5. A minimum net worth of $5,000 must be maintained at all times. If there is discretionary authority of client funds, the net worth minimum requirement is $10,000.
6. A surety bond is required if there is custody of client funds or securities and less than a minimum net worth of $2,000,000. The surety bond amount is set by order of the director up to a maximum bond amount of $2,000,000.
7. De Minimis- applicants are not required to register until there are five clients or more in any consecutive 12-month period. Additional exemption can be found in the New Mexico Uniform Securities Act 58-13C Article 4.
The premium that you pay for a New Mexico Investment Adviser Bond is dependent on credit and the bond amount required.
Registration and bonds must be renewed by December 31 of each year.
Contact our Surety Bond Specialists at:
Hours: 8:00-5:00 CST, Monday through Friday