Section R628-15-6 - Criteria for Certification of an Investment AdviserTo be certified by the Director as a Certified investment adviser or Investment adviser representative under the Act, an investment adviser or investment adviser representative shall:
A. Submit an application to the Division on Form 628-15 clearly designating:(1) the investment adviser;(2) its designated official as defined in R164-4-2 of the Division; and(3) any investment adviser representative who provides investment advisory services to public treasurers in the state.B. Provide written evidence of insurance coverage as follows: (1) fidelity coverage based on the following schedule: TABLE
Utah Public funds under management $0 to $25,000,000 | Percent for Bond 10% but not less than $1,000,000 |
$25,000,001 to $50,000,000 | 8% but not less than $2,500,000 |
$50,000,001 to $100,000,000 | 7% but not less than $4,000,000 |
$100,000,001 to $500,000,000 | 5% but not less than $7,000,000 |
$500,000,001 to $1.250 billion | 4% but not less than $25,000,000 |
$1,250,000,001 and higher | Not less than $50,000,000 |
(2) errors and omissions coverage equal to five percent (5%) of Utah public funds under management, but not less than $1,000,000 nor more than $10,000,000 per occurrence.C. Provide to the Division at the time of application or renewal of application, its most recent annual audited financial statements prepared by an independent certified public accountant in accordance with generally accepted accounting principles in accordance with R628-15-8A.D. Pay to the Division the non-refundable fee described in Section 51-7-18.4(2).E. Have a current Certificate of Good Standing dated within 30 days of application from the state in which the applicant is incorporated or organized.F. Have net worth as of its most recent fiscal year-end of not less than $150,000 documented by the financial statements audited according to Subsection R628-15-6(C).G. Allow the public treasurer to select the forum and method for dispute resolution, whether that forum be arbitration, mediation or litigation in any state or federal court. No agreement, contract, or other document that the applicant requires or intends to require to be signed by the public treasurer to establish an investment advisory relationship shall require or propose to require that any dispute between the applicant and the public treasurer must be submitted to arbitration.H. Agree to the jurisdiction of the Courts of the State of Utah and applicability of Utah law, where relevant, for litigation of any dispute arising out of transactions between the applicant and the public treasurer.I. All Investment adviser representatives who have any contact with a public treasurer or its account, must sign and have notarized a statement that the representative: (1) is familiar with the authorized investments as set forth in the Act and the rules of the Council;(2) is familiar with the investment objectives of the public treasurer, as set forth in Section 51-7-17(2);(3) acknowledges, understands, and agrees that all investment transactions conducted for the benefit of the public treasurer must fully comply with all requirements set forth in Section 51-7-7 and that the Certified investment adviser and any Investment adviser representative is prohibited from receiving custody of any public funds or investment securities at any time.Utah Admin. Code R628-15-6
Adopted by Utah State Bulletin Number 2015-15, effective 7/13/2015Amended by Utah State Bulletin Number 2017-18, effective 8/21/2017