How to Register as an Investment Advisor in Wisconsin

• FINRA Entitlement Paperwork: To initiate the process of becoming a registered investment advisor in Wisconsin, 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 Wisconsin 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, "If you require a prepayment of an assets under management fee equal to or greater than $1,200 and the fee covers the following six months or a longer period of services, you would be subject to the net worth requirement. If you charged more than $1,200 for planning services which would include services provided throughout a year rather than a walk away plan given to the client in, say, 30 days, you would be subject to the net worth requirement. In these instances, the adviser must maintain a positive net worth. If you will take custody of client funds and/or securities in accordance with Wis. Admin. Code s. DFI-Sec 5.035, you must maintain a net capital of $35,000. There is no special net worth requirement in Wisconsin for advisers that have discretionary authority over client accounts. Either of the two previously discussed net worth requirements would apply if you charge fees in advance or maintain custody of client assets. *No bonding requirement listed" Source

• Surety Bonds: Not Applicable

• Fees: Submit a $400 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.