Georgia Investment Advisor Firm & Investment Adviser Representative State Registration Requirements

Similar to other states, a firm seeking to register as a state registered investment advisor in Georgia 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 advisor in Georgia is required to send the miscellaneous documents identified below directly to the Securities Division of Georgia. Here is a brief summary of certain requirements of an investment advisor firm registering in Georgia.

State of Georgia’s Registration Fees:

• Initial State Registration of Investment Advisor Firm: $250
• Renewal State Registration of Investment Advisor Firm: $100
• Initial Investment Adviser Representative Registration: $250
• Renewal Investment Adviser Representative Registration: $100

Forms and Information Required to Register:

• Investment Advisor Firm
  • Form ADV;
  • Sample advisory contract;
  • A Georgia registered investment advisor firm, which has custody of client’s funds or securities, or that requires payment of more than $500.00 in advisory fees per client six or more months in advance, must submit an audited balance sheet to the Georgia Securities Division; and
  • Fingerprint card

Compliance Manual

The Georgia Securities Division requires a state registered investment advisor firm to maintain a compliance manual.

Net Capital or Bonding Requirements

There is currently no explicit net capital or bonding requirement for an investment advisor firm registered with the State of Georgia.

Custody Requirements

An investment advisor firm registered with Georgia, which has custody of client funds or securities for the purpose of acting as an investment advisor or which requires payment of advisory fees six months or more in advance in excess of $500 per client, shall file with the Georgia Securities Commissioner an audited balance sheet as of the end of the investment advisor’s fiscal year end. Such balance sheet must be:

• Examined in accordance with generally accepted auditing standards and prepared in conformity with generally accepted accounting principles;
• Audited by an independent public accountant or an independent certified public accountant; and
• Accompanied by an opinion letter of the accountant concerning the report of financial position (i.e., balance sheet) and a note stating the principles used to prepare it, the basis of included securities, and any other explanations required for clarity.

A Georgia registered investment advisor that has custody of client securities and funds must provide:

1. A journal or other record showing all purchases, sales, receipts and deliveries of securities (including certificate numbers) for such accounts and all other debits and credits to such accounts.
2. A separate ledger account for each such client showing all purchases, sales, receipts and deliveries of securities, the date and price of each purchase and sale, and all debits and credits.
3. Copies of confirmations of all transactions effected by or for the account of any such client.
4. A record for each security in which any such client has a position, which record shall show the name of each such client having any interest in such security, the amount or interest of each such client, and the location of each such security.

Additional Information

Securities Division of Georgia