November 9, 1990
TO: INVESTMENT ADVISER MEMBERS NO. 54-90
INVESTMENT ADVISER ASSOCIATE MEMBERS NO. 50-90
RE: SURETY BOND FORM FOR USE IN ALABAMA
__________________________________________________________
For advisers who will be required to register in Alabama
(see Institute Memorandum to Investment Adviser Members No. 51-90
and Investment Adviser Associate Members No. 46-90, dated October
29, 1990) attached is a copy of Form U-SB, the uniform surety
bond form which Alabama will require investment advisers to file
under certain circumstances. Rule 830-X-3-.06 of the Code of
Alabama requires that all investment advisers must maintain net
capital of $25,000. In the alternative, the minimum net capital
requirements of the SEC will satisfy the state's requirement,
provided that the investment adviser posts a bond of $50,000.
Additionally, those advisers having custody of client funds or
securities or having discretionary authority over customer
accounts, must post the $50,000 surety bond in addition to
maintaining the above net capital requirement.
The next revision of the Institute's Investment Advisers
Guide will have a new chapter for Alabama explaining the
procedures for registration which is required by January 1, 1991.
In the meantime, please refer to the Institute's memorandum
referenced above which has Alabama's Notice to Register attached.
Susan S. Burgess
Legal Assistant
Attachment
SSB:bmb