How to Register as an Investment Advisor in Alaska

• FINRA Entitlement Paperwork: To initiate the process of becoming a registered investment advisor in Alaska, individuals must first apply to the Financial Industry Regulatory Authority (FINRA) to create an account (Entitlement) for their WebCRD/IARD online system (the web application for the registration of RIA and its representatives). FINRA does not regulate or supervise RIAs, but the State of Alaska uses FINRA’s WebCRD/IARD system to process applications.

• Form ADV Part 1: Electronically file Form ADV through IARD. Form ADV Part 1 discloses information about the RIA, including its ownership structure, client base, operational practices, any disciplinary incidents involving the advisor or their employees, and affiliations. This form acts as the online portal for submitting additional documentation within the system.

• Form ADV Part 2A: Detail your RIA’s fee structure, services, disciplinary disclosures, and other firm information in Form ADV Part 2A. Form ADV Part 2A is also known as the Firm’s Disclosure Brochure.

• Form ADV Part 2B: Form ADV Part 2B provides information about the advisor, such as their education, employment history, potential conflicts of interest, and any disciplinary actions.

• Minimum Net Capital for most advisers: According to State Code, "(a) A state investment adviser registered or required to be registered under AS 45.55 that has custody of client funds or securities shall be bonded in the amount of $35,000. (b) A state investment adviser registered or required to be registered under AS 45.55 that has discretionary authority over, but does not have custody of, client funds or securities shall be bonded in the amount of $10,000. (c) A state investment adviser that has its principal place of business in a state other than this state is exempt from the requirements of this section, if the state investment adviser is registered as an investment adviser in the state where it has its principal place of business and is in compliance with that state's bonding requirements. (c) As a condition of the right to continue to transact business in this state, if the net worth of a state investment adviser registered or required to be registered under AS 45.55 that is not bonded under 3 AAC 08.025 becomes negative, the state investment adviser shall notify the administrator of that fact by the close of business on the next business day, unless the state investment adviser receives a waiver from the administrator.* *Advisors must maintain a positive net worth." Source, Source 2

• Surety Bonds: Required for advisors with discretionary authority

• Fees: Submit a $250 fee for the firm's registration through FINRA IARD.

Disclaimer: This website offers general information and is not tailored to address individual business transactions or legal matters. It does not constitute legal advice and should not be relied upon as a substitute for professional legal guidance. While we strive to provide accurate and up-to-date information, we cannot guarantee its absolute accuracy or currency. Errors may occur, and laws may change over time. If you have any questions, please contact a Success Strategist.