Washington investment advisers need to register and get a surety bond before offering financial services to the public. Find out how to get registered and why a bond is required.
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Washington investment advisers offer portfolio management and financial planning services to the public. The state requires advisers and their representatives to register�keep reading to learn how the process works.
Financial adviser registration
Washington investment advisers and representatives�register with the Securities Division of the state’s Department of Financial Institutions. Adviser applicants submit parts of their registration application online through the Investment Adviser Registration Depository (IARD), and part on paper with the Securities Division. Applicants begin by setting up their IARD account and paying the necessary fees for registering as an adviser and/or a representative. They must also submit forms ADV Part 1, ADV Part 2, and U4 (if a representative is being registered).
Documentation financial adviser applicants need to submit to the Division includes:
- Balance sheet from the past 90 days
- Proof of compliance with minimum net worth requirements, which might include a surety bond
- Proposed client contract
- LLC agreement, if applicable
This is not a full list of required documentation; thoroughly read the list to make sure your registration application is complete. Washington investment advisers applying as sole proprietors must submit proof that they have passed a qualifying exam in the previous two years, proof of registration in another state in the past two years, or proof of holding special designations (for example, a Certified Financial Planner). This documentation is submitted to the Securities Division via email, fax at (360) 704-7029, or mail:
For overnight delivery Department of Financial Institutions
Division of Consumer Services
150 Israel Rd SW
Tumwater, WA 98501
Regular mail
PO Box 41200
Olympia, WA 98504-1200
Adviser and representative registrations need to be renewed annually, and fees and forms have different due dates, so stay on top of your renewal�renewal season begins in November.
Investment adviser surety bond?
Washington investment advisers are required to maintain a minimum net worth. If they have custody of their clients’ funds or securities, they need a $35,000 minimum net worth, and if they do not have custody of any funds, a $10,000 net worth. If the applicant does not meet the minimum net worth amounts, they can supplement with a surety bond. The bond must be the amount of the net worth deficiency rounded to the nearest $5,000. So, if an applicant was $7,000 short, they would need a $10,000 surety bond.