New Mexico Investment Adviser Registration

New Mexico Investment Adviser Firm & Investment Adviser Representative State Registration Requirements

Similar to other states, a firm seeking to register as a state registered investment adviser in New Mexico is required to file the Form ADV Part 1 and Part 2 along with any applicable schedule or appendix through the Investment Adviser Registration Depository (“IARD”) system and correspondingly pay in advance the registration fees via the IARD system. Additionally, a firm applying for state registration as an investment adviser in New Mexico is required to send the miscellaneous documents identified below directly to the New Mexico Registration and Licensing Department Securities Division. Here is a brief summary of certain requirements of an investment adviser firm registering in New Mexico.

Registration Fees

• Initial State Registration of Investment Adviser Firm: $300
• Renewal State Registration of Investment Adviser Firm: $300
• Investment Adviser Representative/Designation Principal Registration: $50
• Renewal Investment Adviser Representative Registration: $50

Initial Forms and Information Required to Register

Investment Adviser Firm

• Form ADV
• Financial Statements dated no more than 90 days prior to the application filing date. Investment advisers who will not have custody of client funds or securities may submit unaudited statements;
• Investment advisers who have custody of client funds or securities are required to provide a Securities Licensee’s Blanket Bond, New Mexico Form BF-2;
• If applicable, a list of all branch offices in New Mexico with the name, CRD number and qualifications of the designated principal;
• If the firm has more than one investment adviser representative, the Designation of at least one qualifying principal (name and CRD or social securit number). The designated principal must have the Series 24 qualification exam or one of these professional designations: CFA, CIC, CFP, ChFC, or PFS;
• A list of all investment adviser representatives to be registered in New Mexico and submission of a Form U4 for each individual to the IARD;
• If there is an affirmative response to Form ADV PArt 1, Item 8H, a specimen copy of the solicitor’s agreement and disclosure statement;
• A copy of the firm’s written procedures addressing a privacy policy and to prevent a violation of Rule 12.11.7.13(U) NMAC which includes the misuse of material nonpublic information by the investment adviser or its investment adviser representatives and employees; and
• Specimen copies of all investment advisory client agreement(s).

Investment Adviser Representative

• Form U4

Net Capital or Bonding Requirements

Every investment adviser must maintain a net worth of not less than $5,000. However, for investment advisers with discretionary authority, the net worth requirement is $10,000. Investment Advisers who have custody of customer’s funds or securities are required to maintain a net worth of $2,000,000 as described in Rule 12.11.5.23 or maintain a bond (Securities Licensee’s Blanket Bond, New Mexico Form BF-2, if applicable).

Additional Information

Investment Adviser Registration Packet | NM Securities Division

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