To 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.
