Virginia Administrative Code › Title 21 - SECURITIES AND RETAIL FRANCHISING › Agency 5 - STATE CORPORATION COMMISSION › Chapter 80 - INVESTMENT ADVISORS › Part I - Investment Advisor Registration, Notice Filing for Federal Covered Advisors, Expiration, Renewal, Updates and Amendments, Terminations and Merger or Consolidation › Section 21VAC5-80-10 - Application for registration as an investment advisor and notice filing as a federal covered advisor

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				  Application for registration as an investment advisor shall be filed in
				  compliance with all requirements of IARD and in full compliance with forms and
				  regulations prescribed by the commission and shall include all information
				  required by such forms.
B. An
				  application shall be deemed incomplete for registration as an investment
				  advisor unless the applicant submits the following executed forms, fee, and
				  information:
1. Form ADV Parts 1 and 2
				  submitted to IARD.
2. The statutory
				  fee made payable to FINRA in the amount of $200 submitted to IARD pursuant to
				  §
											13.1-505F
				  of the Act.
3. A copy of the client
				  agreement.
4. A copy of the firm's
				  supervisory and procedures manual as required by
				  21VAC5-80-170.
5. Copies of all advertising
				  materials.
6. Copies of all
				  stationery and business cards.
7. A
				  signed affidavit stating that an investment advisor domiciled in Virginia has
				  not conducted investment advisory business prior to registration, and for
				  investment advisors domiciled outside of Virginia an affidavit stating that the
				  advisor has fewer than six clients in the prior 12-month period.
8. An audited or certified balance sheet
				  prepared in accordance with generally accepted accounting practices reflecting
				  the financial condition of the investment advisor not more than 90 days prior
				  to the date of such filing.
9. A
				  copy of the firm's disaster recovery plan as required by
				  21VAC5-80-160
				  F.
10. Evidence of at least one
				  qualified individual with an investment advisor representative registration
				  pending on IARD on behalf of the investment advisor.
11. A copy of the firm's physical security
				  and cybersecurity policies and procedures as required by 21VAC5-80-260
				  A.
12. A copy of the firm's privacy
				  policy as required by 21VAC5-80-260 B.
13. Any other information the commission may
				  require.
For purposes of this section, the term "net worth" means an
					 excess of assets over liabilities, as determined by generally accepted
					 accounting principles. Net worth shall not include: prepaid expenses (except as
					 to items properly classified as assets under generally accepted accounting
					 principles), deferred charges such as deferred income tax charges, goodwill,
					 franchise rights, organizational expenses, patents, copyrights, marketing
					 rights, unamortized debt discount and expense, all other assets of intangible
					 nature, home furnishings, automobiles, and any other personal items not readily
					 marketable in the case of an individual; advances or loans to stockholders and
					 officers in the case of a corporation; and advances or loans to partners in the
					 case of a partnership.