Section 48-7-009 - FINANCIAL REPORTING REQUIREMENTS009.01 Every registered investment adviser who has custody of client funds or securities or who requires payment of advisory fees six months or more in advance and in excess of twelve hundred dollars ($1,200.00) per client, shall file with the Director audited financial statements showing at a minimum the assets, liabilities and net capital of the investment adviser as of the end of the investment adviser's fiscal year. This requirement does not apply to an investment adviser having custody solely as a consequence of its authority to make withdrawals from client accounts to pay its advisory fee and who complies with the safekeeping requirements in subsections 012.02C2 through 012.02C4, below. 009.01A The financial statements must be: 009.01A1 Examined in accordance with generally accepted auditing standards and prepared in conformity with generally accepted accounting principles;009.01A2 Audited by an independent public accountant or an independent certified public accountant; and009.01A3 Accompanied by an opinion of the accountant as to the report of financial position, and by a note stating the principles used to prepare it, the basis of included securities, and any other explanations required for clarity.009.01B If the date of the audited financial statements is not within ninety days of the date of the initial application or the expiration of the current registration, the investment adviser must also submit a financial statement showing at a minimum the assets, liabilities and net capital of the investment adviser as of a date within ninety days of the date of the initial application or within ninety days of the expiration of the current registration, as the case may be, and signed by an officer, director, partner or member, of the investment adviser, or by the person who prepared the statement, attesting that the statement is true and accurate.009.02 All other investment advisers registered or required to be registered shall file with the Director financial statements showing at a minimum the assets, liabilities and net capital of the investment adviser, prepared in accordance with generally accepted accounting principles. The financial statements need not be audited but must be signed by the investment adviser, by an officer, director, partner, or member of the investment adviser, or by the person who prepared the statement attesting that the statement is true and accurate, as of a date within ninety days of the date of initial application, or within ninety days of the expiration of a current registration, as the case may be.009.03 The financial statements required by this Section shall be filed as part of the investment adviser's initial or renewal application.009.04 This Section does not apply to an investment adviser whose principal place of business is not located in this state, provided: 009.04A Such investment adviser is registered in the state in which its principal place of business is located; and009.04B Such investment adviser is in compliance with the minimum financial requirements established by the state in which its principal place of business is located, if any.009.04C For purposes of this Section, principal place of business means the executive office of the investment adviser from which the officers, partners, or managers of the investment adviser direct, control, and coordinate the activities of the investment adviser.48 Neb. Admin. Code, ch. 7, § 009
Amended effective 11/27/2019