The State of Utah Department of Commerce, Division of Securities, Licensing and Compliance Section, is responsible for the license and registration process, investigating complaints, handling public inquiries and enforcement of securities laws of Investment Advisers.
The Utah Uniform Securities Act provides details that investment advisers must meet for the license registration process. The license registration process includes the following:
1. Payment of a filing fee and application for registration through IARD with any required attachments.
2. Formation and register your business: corporation, LLC, general partnership, limited partnership. Out-of-state business compliance must meet that state’s requirements.
3. Designate an official for the business (sole proprietor, partner, director, officer, etc.) that insures that any employee of the business that is required to be licensed meets Utah compliance. Notification of this must be in writing to the state.
4. Maintain a minimum net worth of $10,000 if there is discretionary authority of client funds.
5. Maintain a minimum net worth of $35,000 with custody of client funds.
6. Submit an audited balance sheet and if the minimum net worth is not met for either custody of client funds or discretionary authority of client funds, a surety bond is required to make up the difference of the shortage of net worth.
7. License expires annually on December 31.
8. De Minimis: out-of-state applicants are not required to register until there are five clients or more during any preceding 12 months and certain types of non-retail clients.
The premium that you pay for a Utah Investment Adviser Bond is dependent on credit and the bond amount required.
You need a to register as an investment adviser if you are being paid for investment advice.
Contact our Surety Bond Specialists today at:
Hours: 8:00-5:00 CST, Monday through Friday