D.C. Mun. Regs. tit. 26, r. 26-A5602

Current through Register 71, No. 45, November 7, 2024

Rule 26-A5602 - REQUIREMENTS OF AN APPLICATION FOR CERTIFICATION

5602.1

The Application for Certification shall contain the following:

(a) A completed Application for Certification;

(b) A nonrefundable application fee in the amount of fifteen thousand dollars ($ 15,000) in the form of a cashier's check, certified check, or company check made payable to the D.C. Treasurer;

(c) An audited balance sheet, with an unqualified opinion from an independent certified public accountant, as of a date not more than thirty-five (35) days prior to the date that the Application for Certification is filed with the Commissioner;

(d) Evidence (which may be the audited balance sheet described in § 5602.1(c)) of an equity capitalization of at least five hundred thousand dollars ($ 500,000) in the form of unencumbered cash, marketable securities or other liquid assets;

(e) An affidavit from the applicant affirming that the applicant, if certified under the Act, will maintain an equity capitalization of at least five hundred thousand dollars ($ 500,000), except for reductions due to qualified distributions, until the allocation date;

(f) An affidavit from the applicant affirming that the applicant, within sixty (60) days of receiving certification, will maintain its principal office within the District and will maintain a set of its books, records, files, and any other information required by the Commissioner as a condition of certification or as required by this chapter;

(g) An affidavit from the applicant affirming that at least two (2) of the principals of the applicant or persons employed or engaged to manage the funds of the applicant have:

(1) At least three (3) years of experience in the venture capital business, which may include investments made in connection with a state or federally sponsored venture capital program; and

(2) Not violated any federal or state insurance, securities or banking law or been convicted of any crime involving fraud;

(h) A detailed description, and supporting documentation, that demonstrates how each of the persons providing affidavits pursuant to § 5602.1(g) qualify as having at least three (3) years of experience in the venture capital business, which shall include, but not be limited to:

(1) A detailed resume with a listing of references including reference telephone numbers; and

(2) A listing of all applicable licenses that each individual holds (or has held within the last ten (10) years). Such listing shall indicate whether the license is active and in good standing, the date on which it will expire or did expire, whether any license has been revoked, the date of revocation and an explanation surrounding the revocation, whether any disciplinary action has ever been imposed with regard to the license, the date of the disciplinary action and a description surrounding the disciplinary action;

(i) A list, if any, of any fines, penalties, or other sanctions or actions by any state, federal, or local regulatory entity relating to violations of any type;

(j) The applicant's overall investment strategy and the applicant's three (3) year business plan including an organizational chart;

(k) The name, address, and phone number for each principal, manager, officer, or director, and each person owning fifteen percent (15%) or more of the voting equity interest or other voting ownership interest of the applicant;

(l) A copy of any offering materials involving the sale of securities of the applicant or the proposed certified capital company;

(m) A copy of the applicant's organizational documents and a description of the applicant's business history, if any; and

(n) Any other information requested by the Commissioner or required by the Act.

5602.2

For purposes of section 3(d) of the Act, the term "principal office" shall mean the location in the District that is the primary place where the investment functions of a certified capital company are performed and the principal location for books and records of the certified capital company.

D.C. Mun. Regs. tit. 26, r. 26-A5602

Final Rulemaking published at 51 DCR 7555, 7556 (July 30, 2004)

Authority: Commissioner of the Department of Insurance, Securities and Banking, pursuant to the authority set forth in Section 10 of the Certified Capital Companies Act of 2003, effective March 10, 2004 (D.C. Law 15-87; D.C. Official Code § 31-5231 et seq.)