Illinois 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 Illinois 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 Illinois is required to send the miscellaneous documents identified below directly to the Illinois Securities Department. Here is a brief summary of certain requirements of an investment advisor firm registering in Illinois.

Registration Fees:

• Initial State Registration of Investment Advisor Firm: $400
• Renewal State Registration of Investment Advisor Firm: $400
• Investment Adviser Representative Registration: $150
• Branch Office Registration: $20 per branch (check payable to Illinois Secretary of State)

Initial Forms and Information Required to Register:

• Investment Advisor Firm
  • Form ADV;
  • List of each branch office in Illinois (copy of Schedule D of Form ADV);
  • Balance sheet (prepared not more than 60 days prior to the date of filing the investment advisor firm’s application), which includes a statement signed by an officer of the investment advisor firm and discloses whether the investment advisor firm will retain custody or accepts prepayment of fees in excess of $500 per client and six or more months in advance;
  • Copy of articles of incorporation and by-laws, partnership agreement or other evidence of formation of the investment advisor firm;
  • A list of designated principal(s) to be responsible for the rendering of investment advice in Illinois and proof of passing the qualifying examination(s) and/or certification evidencing completion of a required education program for each designated principal who is responsible for rendering investment advice and supervision of each investment adviser representative in Illinois;
  • Investment Adviser Representation Under the Illinois Securities Law; and
  • Affidavit of Prior Investment Adviser Activities in Illinois
• Investment Adviser Representative
  • Form U4; and
  • Dual registration form (if individual intends to dually register as investment adviser representative and registered salesperson of broker-dealer).

Compliance Supervisor

Illinois requires investment advisor firms to designate individual(s) as having supervisory responsibilities over the investment adviser representatives of such investment advisor firm.

Net Capital or Bonding Requirements

If an investment advisor firm registered with the Illinois Securities Department has custody (other than automatic fee deduction), then the investment advisor firm is required to maintain a net worth of $35,000.

Custody Requirements

Illinois also follows the U.S. Securities and Exchange Commission’s custody requirements for an investment advisor.

Additional Information

Illinois Securities Department