How to Register and Obtain a License in Minnesota
Investment Advisors must have information on file with the Investment Advisor Registration Depository (IARD) electronic system. Once filed with IARD, the State of Minnesota reviews the information on file. If additional information is required, the investment adviser will be contacted directly by the Department of Commerce.
To register in the State of Minnesota, investment advisors must do the following:
Submit Financial Information
For investment advisers who have custody or discretionary authority over a client’s funds: You must provide audited financial statements of the firm dated within 135 days of the application including a current balance sheet.
Complete Additional Requirements
A surety bond of $25,000 is required to be maintained unless the applicant has no custody of or discretionary authority over, client assets and has $100,000 in net capital.
Net Worth Requirements
Investment Advisers with custody over client funds must maintain a minimum net worth or $35,000 if they do not have direct fee deductions. Investment advisors with discretion over a client’s funds, but without custody, must maintain a minimum net worth of $10,000.
To register as an investment advisor, an initial fee of $100 is required at the time of registration with IARD. Subsequently, a fee of $100 must be paid through the IARD system on an annual basis to keep registration current.
Completion of Exam
$100 Annual fee payable and sent directly to FINRA due upon registration and at the time of annual renewals
Register with the Secretary of State
Register with the Secretary of State to do business in the State of Minnesota if you are an entity based in another state. Please note that the State of Minnesota has adopted the national deminimus rule.
Requirements for Non-Minnesota Businesses