Licensing Requirements for Investment Advisers and Representatives
If you intend to engage in the investment advisory business in the District of Columbia, you must first register or obtain a license from the Securities Bureau of the Department of Insurance, Securities and Banking (DISB). Federal Covered Advisers (FCAs) are registered with the United States Securities and Exchange Commission (SEC). Those firms must submit Notice Filings to DISB if they intend to conduct advisory business in the District of Columbia. Non-Federal, or State-Covered Investment Advisers (SCIAs) that engage in the District of Columbia in the business of advising others as to securities or as to the advisability of investing in, purchasing, or selling securities, or that issue or promulgate analyses or reports concerning securities in the District of Columbia must be licensed by DISB. If you intend to act as the representative (IAR) of a Federal Covered Adviser or an Investment Adviser in the District of Columbia, you must obtain an Investment Adviser Representative license from DISB. Individuals and entities in all three categories (FCAs, SCIAs and IARs) must file electronically through the Investment Adviser Registration Depository (IARD), and must submit certain materials directly to DISB, as described below.
Investment Advisers and Federal Covered Advisers
Under DC Official Code §31-5602.02 (a), no person shall transact business in the District of Columbia as an investment adviser unless the person is licensed or exempt from the licensing requirement. Please see Law Available Online for links to the DC Securities Act of 2000 and the implementing regulations. The filing procedures for FCAs are different from the filing procedures for SCIAs. For information about licensing procedures for FCAs, see Initial Notice Filing of FCAs. For information about licensing procedures for SCIAs, see Initial Licensing of SCIAs.
Investment Adviser Representatives
Investment Advisers must submit, through IARD, a Form U-4, the Uniform Application for Securities Industry Registration or Transfer, and the license application fee for all persons who will work as IARs. For Initial Filing Information for Representatives of either Federal-Covered or State-Covered Advisers, see Initial Filings Of Investment Adviser Representatives.
Notice Filings and Licenses Expire Every Year
Please note that all notice filings and licenses expire on December 31 of each year. For renewal information for FCAs, SCIAs, and IARs see Renewal Filings By FCAs, SCIAs and IARs.
When information contained in any document filed with Securities Bureau, DISB, becomes inaccurate or incomplete, filers must update the information by filing an amendment. For amendment information for FCAs and SCIAs and their Representatives, see Amendment Filings For Federal- and State-Covered Advisers.
Review By Staff
The District of Columbia Securities Act of 2000 mandates that all securities license applications shall become effective within 30 days after the date of filing, which is when the application is completely submitted, unless the application is denied or an action is taken to defer the effective date. As soon as the Securities Bureau, DISB, receives a license application, it will begin to review the application. An application is deemed deficient if it is inaccurate, internally inconsistent or if it omits required documents or material facts. The applicant will be notified about any deficiencies. DISB will postpone the effective date of a license until the applicant cures the deficiencies.
According to DC Official Code §31-5602.03 (b), if the information requested by the Securities Bureau in a notice of deficiency is not received by the close of business on the 90th calendar day (not business day) after the date of the request, the application will be considered withdrawn and will be removed from review. Thereafter, if the applicant wishes to be licensed, the applicant will have to submit a new application with a new fee and current documents. Please see Law Available Online for links to the DC Securities Act of 2000 and the implementing regulations.
Law Available Online
District of Columbia Securities Act of 2000 Online
The District of Columbia Securities Act of 2000 (the "Act") can be accessed via the Internet. The Act is Title 31, Subtitle X. SECURITIES of the DC Official Code.
To locate a particular provision, view each subchapter title to identify the section of the Act you desire to review. For example, if you desire to review information about the licensing requirements governing Investment Adviser and Representatives, click on Subchapter II, and the licensing requirements for Investment Adviser and Representative will appear on the screen. The following provisions of the Act specifically relate to Investment Advisers and Investment Adviser Representatives.
§§31-5601.01(17) and (18) - Definitions
§31-5602.02 - Licensing of Investment Adviser and Representatives
§31-5602.03 - License and Notice Filing Procedure
§31-5602.04 - Post-licensing Requirements
The online Securities Act of 2000 is implemented by District of Columbia's Municipal Regulations.
If you have any additional questions concerning DISB's Investment Adviser and Investment Adviser Representatives License application requirements, please call (202) 442-4934 for immediate assistance. While DISB strives to represent accurate information on its website, the viewer relying on the information should consult with an attorney licensed in the District of Columbia for interpretation of the DC laws. Relying on the website alone is no substitution for the viewer's due diligence about registration or renewal information. DISB is not responsible for a firm's reliance on the information contained on the website.”
Securities Licensing Forms:
- Statement of Financial Condition [PDF]
- Transaction Certification Form [PDF]
- Clean Hands Form [PDF]
- Affidavit for Firms [PDF]
- Affidavit for Representatives [PDF]