The Commonwealth of Virginia State Corporation Commission, Division of Securities and Retail Franchising otherwise known as the “Division,” regulates securities and registration of securities professionals. It is also responsible for trademarks and franchise registration, investor education programs, following up on complaints and investigating code violations and auditing of securities financials and Investment Adviser Registration.
The Virginia Securities Act provides details that investment advisers must meet for the registration process.
The following is required for the registration process:
1. Payment of a filing fee and complete the application for registration through IARD with any required attachments.
2. Submit an audited balance sheet if having custody of client funds. A certified current balance sheet is required if applicant has discretion over client funds, or requires payment of fees of more than $500 per client or advance payments of more than six months. If the applicant has neither custody nor discretion of client fees, then a balance sheet is not required.
3. Maintain a minimum net worth of $35,000 or more.
4. A surety bond is required if the minimum net worth is less than $35,000. Bonds need to be in the amount of the deficiency rounded to the nearest $5,000.
5. Registration expires December 31 of each year.
6. De Minimis: out-of-state applicants are not required to register until there are five clients.
7. Non-CRD/IARD filings must be sent directly to the Division.
The premium that you pay for a Vermont Investment Adviser Bond is dependent on credit and the bond amount required.
The balance sheet, net worth and bond requirements are waived in Vermont if the applicants’ primary business location is in another state and the applicant meets that state’s compliance requirements.
Contact our Surety Bond Specialists at:
Hours: 8:00-5:00 CST, Monday through Friday