Investment Advisers: How To Register
The application for investment adviser registration is a two-part. It involves the electronic filing of Form ADV Part I, ADV Part 2, and other documents. The examination process varies depending on the complexity of the Applicant's business model.
Step 1: IARD Entitlement Process
Electronically file Form ADV Part I and Part 2 using the Investment Adviser Registration Depository (IARD) System. Download and complete the IARD entitlement forms for state registration. The IARD entitlement process is managed by the Financial Industry Regulatory Authority (FINRA). Questions regarding the entitlement forms or process should be directed to the IARD Call Center at 240-386-4848.
Payment of the $200.00 application fee must be made through the IARD at the time of the electronic filing of Part I Form ADV. DO NOT SEND APPLICATION FEES TO CORPORATIONS, SECURITIES AND COMMERCIAL LICENSING BUREAU.
Step 2: CSCL Examinations Process
Upon completion of the entitlement process and Form ADV Part I and Part 2, the IARD will electronically notify the State of Michigan and a letter and/or email from CSCL will be sent to you, the Applicant.
NOTE: Item 7 of the Transition Order Administering the Michigan Uniform Securities Act, Order No. 09-049-M (Transition Order #1) provides that all new applicants for investment adviser registration without custody orders are prohibited from taking custody of funds or securities until standards for maintaining custody of customer securities and funds are established by further order or promulgation of administrative rules.
Investment Advisory Contract
Provide a copy of all investment advisory contracts the Applicant will use for Michigan clients.
- Note that item 12 of Transition Order #1 provides that an investment adviser, investment adviser representative, or federal covered investment adviser shall not enter into, extend, or renew any investment advisory contract unless it provides in writing all of the following:
- The services to be provided, the term of the contract, the investment advisory fee, the formula for computing the fee, the amount of prepaid fee to be returned in the event of termination or non-performance of the contract, and any grant of discretionary power to the investment adviser, investment adviser representative, or federal covered investment adviser.
- That no assignment of the investment advisory contract may be made by any investment adviser, investment adviser representative or federal covered investment adviser without the consent of the other party to the contract.
- That the investment adviser, investment adviser representative, or federal covered investment adviser, if a partnership, shall notify the other party to the investment advisory contract of any change in the membership of the partnership within fifteen (15) days after the change.
Provide an accrual basis balance sheet in conformity to Generally Accepted Accounting Principles (GAAP) that is no older than 45 days. It must be signed as to its accuracy by an officer, partner, member, or sole proprietor.
The accrual basis accounting method recognizes assets when they are earned (but not necessarily collected) and records liabilities when they are incurred (but not necessarily paid). This is different than the cash basis accounting method, which recognizes revenues when they are collected and expenses when they are paid.
Corporations, Securities and Commercial Licensing Bureau
PO Box 30018
Lansing, MI 48909
(Please note: Mail/Packages should not be sent to this address)
2501 Woodlake Circle,
Okemos, MI 48864
Corporations, Securities & Commercial Licensing
525 W. Allegan St.
Lansing, MI 48913
Investment Adviser Seminars: For a better understanding of the registration process as well as what to expect when an CSCL examiner visits your firm, attend on of our Investment Adviser Seminars