The South Carolina Attorney General, Legal Securities Division, handles investment adviser registration. The Division provides services for detriments against fraud and unethical practices, investor education and insures an equitable securities marketplace.
The South Carolina Uniform Securities Act of 2005 provides details of the investment adviser registration process. The following is required 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. Submit a balance sheet and income statement that is less than 45 days.
4. Submit a list of investment adviser representatives for the firm doing business in South Carolina and their CRD numbers.
5. Maintain a minimum net worth of $50,000 if there is custody of client funds. A $50,000 surety bond is required if the minimum net worth is not maintained.
6. Maintain a minimum net worth of $35,000 is required if discretionary authority of client funds. A $35,000 surety bond is required if the minimum net worth is not maintained.
7. If the applicant business is located out-of-state, the bonding requirements may be waived if the applicant is in compliance with said state requirements for net worth or surety bonding.
8. Registration expires annually on December 31.
9. De Minimis: out-of-state applicants are not required to register until there are 5 clients or more.
The premium that you pay for a South Carolina Investment Adviser Surety Bond is dependent on credit and the bond amount required.
You must provide to the South Carolina Securities Division, a list of investment adviser representatives with their CRD numbers that will be doing business in South Carolina.
Hours: 8:00-5:00 CST, Monday through Friday