Section 26-B178. FINANCIAL STATEMENTS AND REPORTS

 

178.1Every investment adviser whose principal place of business is located in the District who has custody of client funds or securities or who requires payment of advisory fees six months or more in advance and in excess of $ 500 per client shall file with the Department an audited balance sheet as of the end of the investment adviser's fiscal year. Each balance sheet filed pursuant to this section shall be:

 

(a)Examined in accordance with generally accepted auditing standards and prepared in conformity with generally accepted accounting principles;

 

(b)Audited by an independent public accountant or an independent certified public accountant; and

 

(c)Accompanied by an opinion of the accountant as to the report of financial position and by a note stating the principles used to prepare it, the basis of included securities, and any other explanations required for clarity.

 

178.2The financial statements required by this section shall be filed with the Department as soon as possible but no later than 90 days from the date of the end of the investment adviser's fiscal year.

 

178.3For the purposes of this section, "custody of client funds or securities" shall apply to persons only if the client's funds or securities are held for the purposes of engaging in the business of an investment adviser.

 

178.4Every investment adviser licensed or required to be licensed under the Act may be required by the Department to file a financial statement showing the financial condition of such investment adviser as of the most recent practicable date. The financial statements shall not be required to be audited.

 

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).