710 IAC 4-9-12 Financial statements and reporting requirements for investment advisers

Sec. 12. (a) Every investment adviser required to be registered under IC 23-19 who has custody of client funds or securities for the purposes of acting as an investment adviser or who requires payment of advisory fees six (6) months or more in advance and in excess of five hundred dollars ($500) per client must file with the commissioner an audited balance sheet as of the end of the investment adviser's fiscal year. Each balance sheet filed under this section must be as follows: (1) Examined in accordance with generally accepted auditing standards and prepared in conformity with generally accepted accounting principles. (2) Audited by an independent public accountant or an independent certified public accountant. (3) Accompanied by an opinion of the accountant as to the report of financial position and by a note stating the principles used to prepare it, the basis of included securities, and any other explanations required for clarity. (b) Every investment adviser required to be registered under IC 23-19 must file upon request a financial statement with the commissioner showing the financial condition of the investment adviser as of the most recent fiscal year. Except as provided in subsection (a), the financial statements need not be certified. (c) Financial statements required by subsection (a) shall be filed with the commissioner as soon as possible, but not later than one hundred twenty (120) days after the end of the investment adviser's fiscal year.