How to Register as an Investment Advisor in West Virginia

• FINRA Entitlement Paperwork: To initiate the process of becoming a registered investment advisor in West Virginia, 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 West Virginia 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, "(1) Every investment adviser shall maintain net capital of not less than twenty-five thousand dollars ($25,000), which shall be in the form of case or securities or other liquid assets as determined by the Commissioner. Any investment adviser which fails to meet, or does not at all times maintain the minimum net capital herein prescribed shall be required to furnish a surety bond as prescribed and detailed in Section 11.2(e) of these rules. (d) Minimum capital requirements. (1) A broker-dealer, investment adviser, or issuer having agents registered in this State, shall comply with SEC Rules 15c3-1 (net capital requirements for broker-dealers, 17 CFR 240.15c3 - 3 ), and shall maintain net capital in such minimum amounts as are prescribed therein, or in the amount of twenty-five thousand dollars ($25,000), whichever is greater. (e) Any broker-dealer, any issuer having agents registered in this State or wishing to have agents so registered, and any investment adviser which fails to meet, or does not at all times maintain the minimum net capital defined and required by Section 11.2(d) of these rules shall be required to furnish a surety bond in the amount of ten thousand dollars ($10,000), as a condition for said registration becoming, or remaining effective." Source, Source 2

• Surety Bonds: Required if advisor falls below minimum net capital requirement

• Fees: Submit a $200 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.