Section 26-B152. INVESTMENT ADVISER LICENSING AND RENEWAL

 

152.1It shall be unlawful for any person to transact business in the District as an investment adviser or as an investment adviser representative unless the person is registered under the Act.

 

152.2An application for an investment adviser license, pursuant to Section 202 of the Act (D.C. Register at 47 DCR 7845), shall be filed with the LARD on Part 1A and Part 1B of Form ADV (the Uniform Application for Investment Adviser Registration) promulgated by the Securities and Exchange Commission (17 C.F.R. 279.1)) or any successor form, and shall include the additional information and materials required by these regulations.

 

152.3The initial application shall include an irrevocable consent appointing the Commissioner to be the attorney to receive service of any lawful process in any non-criminal suit, action, or proceeding against the applicant or its successor, executor or administrator which arises under the Act, these regulations or order hereunder after the consent has been filed, with the same force and validity as if served personally on the applicant filing the consent.

 

152.4The application for an initial license shall also be accompanied by the following:

 

(a)Proof of compliance by the investment adviser with the examination requirements of § 160;

 

(b)A statement of financial condition of the applicant, prepared in accordance with generally accepted accounting principles in such detail as to disclose the nature and amount of assets, liabilities, and capital. This requirement may be satisfied by either of the following:

 

(1)An audited statement of financial condition as of the end of the applicant's most recent fiscal year which complies with the requirement of § 177; provided that such statement is no more than 45 days prior to the date of filing; or

 

(2)An unaudited balance sheet. Such balance sheet shall be accompanied by an oath or affirmation that the statement is true and correct to the best of his or her knowledge and belief and shall be made before a person duly authorized to administer the oath or affirmation. Such balance sheet shall be as of a date within thirty (30) days of the date on which the application is filed; and

 

(3)As a part of the statement of financial condition, the Director may require the filing of the following separate schedules;

 

(4)Listing the securities owned by the applicant valued at the market; and

 

(5)Stating material contractual commitments of the applicant not otherwise reflected in the statements;

 

(c)The fee required by § 161;

 

(d)Except for an investment adviser that is a sole proprietorship, or the substantial equivalent, each investment adviser licensed with the Department shall register with the Department at least one investment adviser representative;

 

(e)A copy of the Surety Bond required by § 179; and

 

(f)Any other information required by statute or requested from the applicant by the Director.

 

152.5Applications for initial and renewals licenses as an investment adviser shall be deemed an incomplete application for purposes of § 164 unless the required fee and all required submissions have been received by the Department.

 

152.6The license of an investment adviser and investment adviser representative shall expire on December 31 of each year.

 

152.7The application for renewal as an investment adviser or an investment adviser representative shall be filed with the Department through IARD, together with the fee required by § 161. An investment adviser shall file the renewals of its investment adviser representatives with the Department on a form provided by the Director, prior to the IARD's acceptance of renewals for investment adviser representatives.

 

152.8The license of an investment adviser representative is not effective during any period when the representative is not employed or associated with an investment adviser licensed under the Act. The investment adviser shall promptly notify the Commissioner when the representative is not employed or associated with an investment adviser registered under the Act. No investment adviser representative may be registered with more than one (1) investment adviser unless the investment adviser which employs or associates with the investment adviser representative is under common ownership or control.

 

152.9Applicants for licensure with the Commissioner as an investment adviser, must complete and file the IARD with the Department Part 1A and Part 1B of Form ADV by following the instructions in the Form.

 

152.10An investment adviser applying for a license shall file electronically with the IARD, unless the investment adviser has received a hardship exemption under § 156. Each Form ADV will be considered filed with the Department upon acceptance by the IARD.

 

152.11Until the IARD begins to accept Part 2A and Part 2B of Form ADV (the "brochure"), an investment adviser shall file Part II of Form ADV in paper form with the Department.

 

152.12An investment adviser shall pay FINRA (the operator of the IARD) a filing fee, the amount of which is provided in the instructions to Form ADV, no portion of which is refundable. An application for registration will not be accepted by NASDR, and thus will not be considered filed with the Department, until the appropriate fee has been paid.

 

152.13Once an investment adviser has filed a Form ADV [17 CFR 279.1] (or any amendments to Form ADV) electronically with the IARD, any Form ADV-W must be filed with the IARD, the IA must file unless a hardship exemption has been granted for such filing pursuant to § 157.

 

source

Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).