2019 Investment Adviser Renewals

Tuesday, November 27, 2018

Renewal season is almost here. Renewal has two steps: (1) payment of annual renewal fees to the Investment Adviser Registration Depository (IARD), which must be received by the IARD no later than December 17, 2018; and (2) annual filing requirements, which are due within 90-120 days after the investment adviser’s fiscal year end (FYE).

2019 Renewal Calendar

Action Item Where/To Whom Action Due Date
Pay renewal fees IARD December 17, 2018
File Form ADV Parts 1 & 2 IARD 90 days after the Adviser's FYE
Deliver or Offer Form ADV 2 Clients 120 days after the Adviser's FYE
File GAAP Balance Sheet Securities Division 120 days after the Adviser's FYE
File Fund Audit (Private Fund only) Securities Division 120 days after the Adviser's FYE

Annual Renewal Fees

Renewal Fee Amount
Investment Adviser IARD System Fee $0
Investment Adviser Washington State $75
Investment Adviser Other Jurisdictions IA Settings and Standard Fees
Investment Adviser Representative IARD System Fee $10
Investment Adviser Representative Washington State $20
Other Jurisdictions IARD System Fee IA Representative Fee and Setting Schedule

Resources and Contact Information

IARD Information Resource
Help & Training https://www.iard.com/help-training
Form ADV Part 1 http://www.iard.com/part1instructions.asp
Form ADV Part 2 http://www.iard.com/part2instructions.asp
Form BR http://www.iard.com/uniform_branch_office_registration_form.asp
IARD Call Center (240) 386-4848
Securities Divsion Information  
Website http://www.dfi.wa.gov/investment-advisers
General Mailbox IALicensing@dfi.wa.gov
General Questions (360) 902-8815
Pooled Investment Vehicles/Private Fund Advisers (360) 902-8786

Annual Renewal Payment Requirements

Payment Options

Payment of annual renewal fees is made through your IARD Renewal Account. Please ensure that this account has sufficient funds. Remember to pay the full amount of the Preliminary Renewal Statement, which will be available in the Accounting section on IARD beginning today.

You must submit payments to IARD by electronic payment via E-Bill, wire transfer, automatic Flex-Funding Account-to-Renewal Account transfer, or check. If you pay by check, you will need to include a copy of the first page of your Preliminary Renewal Statement with your payment to FINRA. Do not send your renewal payment to the Securities Division.

Payment Deadline

To ensure timely processing, FINRA must be in receipt of funds no later than December 17, 2018. The best practice is to pay your renewal fees in November upon receipt of your Preliminary Renewal Statement. If you wait until the deadline, you may not have enough time to fix any errors that may occur.

If a firm fails to pay its renewal fees, IARD will systematically terminate the investment adviser and their representatives.


Annual Filing Requirements

The final stage of the annual renewal process are your fiscal year end filings. Please do not submit your filings prior to the end of your fiscal year.

Form ADV Part 1

You are required to file an annual updating amendment. This is required even if there have been no changes since your last filing. In order to ensure that the Form ADV Part 1 has been updated properly, please ensure that you have passed the “Completeness Check” and click “Submit Filing.”

Form ADV Part 1 must also be updated throughout the year, in general, within 30 days whenever any information becomes inaccurate. Please see WAC 460-24A-205 and ADV Part 1 for additional information.

Form ADV Part 2

You must confirm the accuracy of your current Form ADV Part 2 or file an updated version. You are required to update Form ADV Part 2 each year at the time you file your annual updating amendment if there are any changes. For example, if your assets under management have changed, you must update your Part 2. If there have been no changes, you must attest to the accuracy of your Part 2 by clicking on the “Brochure ID” to verify that the brochure on file is up to date, select the “Confirm” radio button, and then click on “Save.”

If there have been material changes to your Form ADV Part 2, you are required to, without charge, annually deliver (or offer, in writing, to deliver upon written request) to each of your clients the Form ADV Part 2. This must include a summary of material changes. This delivery may be done electronically for those clients that have opted to receive communication from the investment adviser via electronic delivery in the investment advisory agreement. Please note that evidence of the annual offer or delivery must be maintained by the investment adviser.

Form ADV Part 2 (Brochure) must also be updated throughout the year within 30 days whenever any information in the brochure becomes materially inaccurate. Please see ADV Part 2 and WAC 460-24A-145 for additional information.

Form BR

If your firm conducts business at locations other than your principal office, the Securities Division requires that you also submit a Form BR for each of these locations which may include home office and satellite locations. Form BR is filed through your firm’s account on the IARD system.

Balance Sheet with Written Attestation

Email To: IALicensing@dfi.wa.gov

Per WAC 460-24A-060, you are required annually to submit a balance sheet dated as of the last day of your most recent fiscal year end to the Securities Division. The balance sheet must be prepared in accordance with Generally Accepted Accounting Principles (GAAP), with a written attestation that your balance sheet is true and complete to the best of your knowledge upon submission. This written attestation can be attached to your balance sheet or in the body of your email submission to the Division at IALicensing@dfi.wa.gov.

If you have custody, absent an exemption, your investment adviser’s balance sheet will need to be audited by an independent certified public accountant and must include the accountant’s audit opinion. See WAC 460-24A-060 for additional information.

If your principal place of business is located in the State of Washington, your minimum financial requirements are as follows:

  • If you have custody of client funds or securities, you must maintain at all times a net worth of at least $35,000;
  • If you have discretion, you must maintain at all times a net worth of at least $10,000; or
  • If you have neither discretion nor custody, you must be able to maintain a positive net worth. See WAC 460-24A-170 for additional information.

Please note that you may be requested to provide your income statement, statement of cash flows, statement of owner’s equity, and trial balances to support and/or verify the information on your balance sheet.

If you utilize a bond to meet your minimum financial condition, please submit a copy of the bond renewal confirmation from the insurance company to the Securities Division.

If your firm manages a private fund, you are required to submit a copy of your annual fund audit to the Securities Division within 120 days after your fiscal year end. Please see WAC 460-24A-060 and WAC 460-24A-107.

Warning to Late and/or Non-Filers

Investment advisers who fail to file the required documents within the due dates following their fiscal year end can expect to be referred for administrative action, which may include suspension or revocation of your license and fines.


Reminder

As we announced last year, the Securities Division is no longer automatically sending any renewal and filing notices via hard copy. We will continue to send communication via email and post notices on our website at http://dfi.wa.gov/investment-advisers.

If you have any questions or would like to receive hard copy notices, please contact us at IALicensing@dfi.wa.gov or (360) 902-8815.