S.D. Admin. R. 20:08:05:15

Current through Register Vol. 50, page 162, June 24, 2024

Section 20:08:05:15 - Application for investment adviser and investment adviser representative registration

(1) Investment adviser initial application:

(a) The application for initial registration as an investment adviser pursuant to SDCL 47-31B-403(a) shall be made by completing Form ADV (Uniform Application for Investment Adviser Registration) in accordance with the form instructions and by filing the form electronically with IARD. The application for initial registration shall also include the following:

(i) Proof of compliance by the investment adviser with the examination requirements of § 20:08:05:27;

(ii) Such financial statements as set forth in § 20:08:05:22, including a copy of the balance sheet for the last fiscal year, and if such balance sheet is as of a date more than 45 days from the date of filing of the application, an unaudited balance sheet is prepared as set forth in § 20:08:05:22;

(iii) A copy of the surety bond required by § 20:08:05:24, if applicable, shall be made available upon request of the director; and

(iv) The fee required by SDCL 47-31B-410(c).

(b) Form ADV Part 2. The director may:

(i) Accept a copy of Part 2 of Form ADV as filed electronically with IARD; or

(ii) Require a paper copy of Part 2 of Form ADV be filed directly with the director.

(c) Annual renewal. The application for annual renewal registration as an investment adviser shall be filed electronically with IARD. The application for annual renewal registration shall include the following:

(i) The fee required by SDCL 47-31B-410(c); and

(ii) A copy of the surety bond required by § 20:08:05:24, if applicable.

(d) Updates and amendments:

(i) An investment adviser must file electronically with IARD, in accordance with the instructions in the Form ADV, any amendments to the investment adviser's Form ADV;

(ii) An amendment will be considered to be filed promptly if the amendment is filed within 30 days of the event that requires the filing of the amendment; and

(iii) Within 90 days of the end of the investment adviser's fiscal year, an investment adviser must file electronically with IARD an Annual Updating Amendment to the Form ADV.

(e) Completion of filing. An application for initial or renewal registration is not considered filed for purposes of SDCL 47-31B-403(a) until the required fee and all required submissions have been received by the director.

(2) Exemption from registration for certain investment advisers. Pursuant to SDCL 47-31B-403(b)(3), an investment adviser that meets the exemption requirements as set forth in Sections 203(b), 203(1), or 203 (m) of the Investment Advisers Act of 1940 as amended, is also exempt from the registration requirements set forth in SDCL 47-31B-403(a).

(3) Investment adviser representative initial application:

(a) The application for initial registration as an investment adviser representative pursuant to SDCL 47-31B-404(a) shall be made by completing Form U4 (Uniform Application for Securities Industry Registration or Transfer) in accordance with the form instructions and by filing the Form U4 electronically with IARD. The application for initial registration shall also include the following:

(i) Proof of compliance by the investment adviser representative with the examination requirements of § 20:08:05:27.

(ii) The fee required by SDCL 47-31B-410(d).

(b) Annual renewal. The application for annual renewal registration as an investment adviser representative shall be filed electronically with IARD. The application for annual renewal registration shall include the fee required by SDCL 47-31B-410(d).

(c) Updates and amendments:

(i) The investment adviser representative is under a continuing obligation to update information required by Form U4 as changes occur;

(ii) An investment adviser representative and the investment adviser must electronically file promptly with IARD any amendments to the representative's Form U4; and

(iii) An amendment will be considered to be filed promptly if the amendment is filed within 30 days of the event that requires the filing of the amendment.

(d) Completion of filing. An application for initial or renewal registration is not considered filed for purposes of SDCL 47-31B-404(a) until the required fee and all required submissions have been received by the director.

(e) Dual registration:

A dual registration may be allowed by the director if:

(i) The applicant requests a dual registration in writing to the division which identifies the investment advisers or federal covered investment advisers with which the applicant will associate and set forth the reasons for the dual registration;

(ii) Both investment advisers or federal covered investment advisers with which applicant intends to associate represent in writing to the division that each assumes full responsibility for applicant at all times; and

(iii) The applicant discloses the dual registration to each client.

S.D. Admin. R. 20:08:05:15

37 SDR 112, effective 12/9/2010; 38 SDR 63, effective 10/24/2011; 43 SDR 80, effective 12/6/2016

General Authority: SDCL 47-31B-403(a) and (b)(3), 47-31B-404(b)(2), 47-31B-410(d) and (f), 47-31B-412(e), 47-31B-605(a) and (b), 47-31B-608(c)(1).

Law Implemented: SDCL 47-3IB-102(16), 47-31B-103, 47-31B-403(a), 47-31B-404(a), 47-31B-406(a), 47-31B-410(d), 47-31B-605(a)(3).