Form ADV: The Foundation of State Registration
Registering as an investment adviser at the state level is a multi-step process that requires careful attention to both federal filing requirements and state-specific mandates. The cornerstone of every adviser registration is Form ADV, a uniform disclosure document administered by the SEC and used by both state and federally registered advisers. Form ADV consists of two parts: Part 1, which contains information about the adviser's business, ownership, clients, employees, and disciplinary history; and Part 2, the firm's brochure, which must be written in plain English and delivered to prospective and existing clients.
Filing Through IARD and Fee Considerations
The IARD system, operated by FINRA on behalf of state and federal regulators, serves as the centralized electronic filing platform for all Form ADV submissions. Advisers must establish an IARD account, fund it to cover applicable filing fees, and submit their Form ADV electronically. Initial state registration fees vary widely, from $40 in Utah to $550 in New Jersey (IARD schedules as of August 2026), with most states in the $100–$400 range. Renewal fees are assessed annually, typically due during the IARD renewal period in November and December for the following calendar year. Advisers should budget for both initial and ongoing IARD fees as a recurring cost of doing business.
State-Specific Examination and Qualification Requirements
State-specific requirements layer on top of the standard Form ADV filing. Many states require advisory firm principals and investment adviser representatives to pass qualifying examinations such as the Series 65 (Uniform Investment Adviser Law Examination) or the Series 66 (Uniform Combined State Law Examination, taken in conjunction with the Series 7). Some states accept alternative qualifications, such as certain professional designations including the CFA, CFP, or ChFC, in lieu of the Series 65. Firms should verify the specific examination and qualification requirements for each state in which they plan to register.
Surety Bond Requirements
Surety bond requirements represent another state-specific consideration that varies by jurisdiction. Some states require advisers to post a surety bond, the amount of which may depend on the adviser's business activities, whether it exercises custody or discretion over client assets, or its net worth. The NASAA model rule sets a minimum net worth of $35,000 for advisers with custody and $10,000 for advisers with discretion, and some states allow an adviser to post a bond instead (actual requirements vary by state). Maintaining the required net worth or bond, and providing proof of it to the state securities regulator, is an ongoing obligation that must be monitored.
Registration Processing Times
Review times vary by state and by how complete the application is. A regulator may also issue a deficiency letter requesting additional information before approving an application. Advisers should plan for potential delays and avoid committing to client relationships that depend on completed registration until the approval is in hand.
Ongoing Compliance Obligations
Ongoing compliance obligations begin immediately upon registration. Advisers must file annual updating amendments to Form ADV within 90 days of the firm's fiscal year end, promptly amend Form ADV to reflect any material changes, and deliver updated brochures to clients. Many states also require advisers to file annual financial statements, and those with custody obligations may need to submit audited financial statements. Maintaining a compliance calendar that tracks all state-specific deadlines is critical for avoiding late-filing penalties and regulatory scrutiny.
Notice Filing for Federally Registered Advisers
SEC-registered advisers make notice filings in the states that require them, generally including any state where they have a place of business or exceed the de minimis client threshold. A notice filing typically consists of the Form ADV filed through IARD and the state's notice-filing fee. Notice filings must be renewed annually, and failure to maintain current notice filings can result in the adviser conducting business in violation of state securities law.
Compliance Approved Support
Compliance Approved supports state-registered advisers with home-state requirement tracking, including a minimum net worth check, filing deadline reminders on a regulatory calendar, and Form ADV amendment tracking. Our platform is designed to reduce the administrative burden of initial registration and ongoing compliance, letting advisers focus on serving their clients.