How to Register as an Investment Advisor in Kentucky

• FINRA Entitlement Paperwork: To initiate the process of becoming a registered investment advisor in Kentucky, 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 Kentucky 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, ""5. An investment adviser must be solvent. 6. If an investment adviser based in Kentucky has custody of client funds or securities, then the adviser shall maintain a minimum net worth of $35,000 or may be bonded up to $25,000 with surety bond and $10,000 net worth. 7. If an investment adviser based in Kentucky has discretionary authority over client funds or securities, but does not have custody of client funds or securities, then the adviser shall maintain a minimum net worth of $10,000 or be bonded in that amount. For a sample of a surety bond, see the example in the documents list below. 8. A current balance sheet."" Source

• Surety Bonds: Permitted in lieu of Net Capital when advisor has discrationary authority

• Fees: Submit a $100 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.