State of Vermont SECURITIES DIVISION Department of Banking, Insurance, Securities & Health Care Administration 89 Main St. Montpelier, VT 05620-3101 On-line Version FORMS AND INSTRUCTION FOR FILING INITIAL STATE INVESTMENT ADVISER APPLICATIONS IN VERMONT An application for initial registration as an investment adviser or investment adviser representative in Ve not be deemed "filed" until the required fee and all required submissions have been received by the Verm Securities Division ("Division"). Please be advised that failure to complete the application procedure as below may result in termination of the application without prejudice. Application fees will not be refund and a new fee will be required upon re-filing. YOUR APPLICATION MUST INCLUDE THE FOLLOWING: I. Investment Adviser Initial Registration must include: 1) Part I of Form ADV filed via the Investment Adviser Registration Depository (“IARD”) 2) A non-refundable application fee of $250 submitted through the IARD. 3) A completed copy of Part II of Form ADV. 4) A copy of any document that the applicant may use in lieu of Part II of Form ADV. 5) Sample copies of all client contracts. 6) A copy of the investment adviser’s privacy policy. 7) Affidavit of Investment Advisory Activity Form. 8) Vermont Investment Adviser Tax Certification Form. 9) Branch Office Form 10) A current balance sheet. * (a) An investment adviser having custody of client funds, assets or securities must file a current au balance sheet. * (b) An investment adviser having discretion over, but not custody of, client funds or securities, or requiring payment of fees six or more months in advance and in excess of $500 per client, must fil American LegalNet, Inc. www.FormsWorkflow.com current certified balance sheet. * (c) An investment adviser having neither custody nor discretion is not required to file a balance sh 11) The Vermont Surety Bond Form, if required. * (a) An investment adviser having custody as described in Item 10(a) of these Instructions must eit meet a $35,000 minimum net worth requirement or post a bond in the amount of the net worth deficiency, rounded up to the nearest $5,000. * (b) An investment adviser having discretion as described in Item 10(b) of these Instructions must meet a $10,000 minimum net worth requirement or post a bo the amount of the net worth deficiency, rounded up to the nearest $5,000. * *Vermont’s balance sheet, net worth and bonding requirements are not applicable to an investmen registered or licensed in a state where it maintains its principal place of business AND is in compli such state’s requirements. PLEASE RETAIN A COPY OF ALL FORMS FOR FUTURE USE. II. Investment Adviser Representative Initial Registration must include: 1) A Form U-4, filed via the IARD, for each representative required to be registered. 2) A non-refundable application fee of $55, submitted through the IARD, for each representative requir registered. 3) The Vermont Investment Adviser Representative Child Support and Tax Certification Form. PLEASE RETAIN A COPY OF ALL FORMS FOR FUTURE USE. III. Examination Requirements for Investment Adviser Representatives Effective January 1, 2000, an individual applying to be registered as an investment adviser representativ provide the Commissioner with proof of obtaining a passing score on one of the following examinations 1) The Uniform Investment Adviser Law Examination (Series 65 examination); or 2) The General Securities Representative Examination (Series 7 examination) and the Uniform Combine Examination (Series 66 examination). Grandfathering 1) Any individual who is registered as an investment adviser or investment adviser representative in any American LegalNet, Inc. www.FormsWorkflow.com in the United States on January 1, 2000 shall not be required to satisfy the examination requirements for registration, except that the Commissioner may require additional examinations for any individual found violated any state or federal securities law. 2) An individual who has not been registered in any jurisdiction for a period of two (2) years shall be re comply with the examinations requirements of this Regulation. Waivers: The examination requirements shall not apply to an applicant who currently holds one of the f professional designations: 1) Certified Financial Planner (CFP) awarded by the Certified Financial Planner Board of Standards, In 2) Chartered Financial Consultant (ChFC) awarded by the American College, Bryn Mawr, Pennsylvania 3) Personal Financial Specialist (PFS) awarded by the American Institute of Certified Public Accountan 4) Chartered Financial Analyst (CFA) awarded by the Institute of Chartered Financial Analysts; 5) Chartered Investment Counselor (CIC) awarded by the Investment Counsel Association of America, 6) Such other professional designation as the Commissioner may by rule or order recognize. IV. Renewals Renewals for investment advisers, investment adviser representatives and places of business must be file with the Division. The Division initiates the annual renewal filing process for advisers, adviser represent places of business by mailing to registrants in October of each year a Renewal Invoice and accompanyin requirements and instructions. If your firm does not receive a Renewal Invoice prior to the end of Octob contact this office immediately in order to avoid untimely renewal for the next calendar year. A renewal considered timely if filed with the Division no later than December 1 of each year. V. Filing All non-IARD filings must be mailed or delivered to: Vermont Department of Banking, Insurance, Securities and Health Care Administration Securities Division 89 Main Street, Drawer 20 Montpelier, VT 05620-3101 American LegalNet, Inc. www.FormsWorkflow.com