Kansas Investment Advisor Registration Process

How to Register as an Investment Advisor in Kansas

• FINRA Entitlement Paperwork: To initiate the process of becoming a registered investment advisor in Kansas, 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 Kansas 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 Kansas State Code, "A balance sheet showing solvency is required for registration. Investment Advisers registered in Kansas must maintain a positive net worth at all times."
  
  Regulation: "(d) Positive net worth requirement.
  
  (1) Each investment adviser that is registered or required to be registered under the act shall maintain at all times a positive net worth.
  
  (2) Notification. Each investment adviser registered or required to be registered under the act shall, by the close of business on the next business day, notify the administrator if the investment adviser is insolvent because its net worth is negative as determined in conformity with GAAP. The notification of insolvency shall include the investment adviser's balance sheet that states the insolvent financial condition on the date the insolvency occurred. Upon receiving the balance sheet, the administrator may require the investment adviser to file additional information by a specified date.
  
  (3) Exception for out-of-state advisers. If an investment adviser has its principal place of business in a state other than Kansas and is properly registered in that state, the investment adviser shall be required to maintain the minimum capital required by the state in which the investment adviser maintains its principal place of business." Source

• Surety Bonds: Not Applicable

• Fees: Submit a $300 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.