The State of Rhode Island and Providence Plantation Department of Business Regulation, Securities Division, handles Investment Adviser licensing and investigates alleged violations. The department also regulates banking, insurance, securities and charities, racing and athletics, design professionals, liquor licensing, real estate licensing, the Board of Accountancy and constable licensing.
The Rhode Island Securities Division Regulations sets forth that investment advisers must meet the conditions of the Act which includes registration.
The following requirements must be met for the registration process:
1. Payment of a filing fee and application for registration through IARD with any required attachments.
2. Sample copies of a written client contracts and/or agreements.
3. Designate a supervisory investment adviser.
4. Maintain a minimum net worth of $5,000 if no custody of client funds.
5. A minimum net worth of $25,000 is required if having custody of client funds. In addition to the net worth, a surety bond will be required in the amount set by the director. The surety bond can range from $100,000 to one million for the adviser, and $10,000 to $100,000 for each associated investment adviser.
6. De Minimis: out-of-state applicants are not required to register until there are five clients or more.
The premium that you pay for a Rhode Island Investment Adviser Surety Bond is dependent on credit and the bond amount required.
A sole proprietor Rhode Island investment adviser must pay both the investment adviser fee and the investment adviser representative fee.
Hours: 8:00-5:00 CST, Monday through Friday