1. A. A registered investment adviser that has custody of client funds or securities, or requires payment of advisory fees 6 months or more in advance and in excess of $500 per client, shall 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 regulation shall be:

   1. (1) Audited by an independent certified public accountant;
   2. (2) Prepared in conformity with generally accepted accounting principles; and
   3. (3) Accompanied by a note stating the principles used to prepare it, the basis of included securities or assets, and any other explanations required for clarity.
2. B. The financial statements required by this regulation shall be filed with the Commissioner within 90 days following the end of the investment adviser's fiscal year.

Authority: Corporations and Associations Article, §§11-101, 11-203, and 11-302, Annotated Code of Maryland

Effective date:

Regulations .01—.09 adopted as an emergency provision effective July 25, 1989 (16:16 Md. R. 1733); emergency status expired December 22, 1989

Regulations .01—.09 adopted as an emergency provision effective December 23, 1989 (17:1 Md. R. 63); adopted permanently effective April 16, 1990 (17:7 Md. R. 845)

Regulation .05 amended and Regulations .10—.18 adopted as an emergency provision effective August 1, 1990 (17:15 Md. R. 1845)

Regulation .05 amended and new Regulations .10—.18 adopted as an emergency provision effective December 1, 1990 (17:26 Md. R. 2972)

Regulations .05A, B amended effective March 18, 1991 (18:5 Md. R. 592)

Regulations .10—.18 adopted effective March 18, 1991 (18:5 Md. R. 592)

Regulations .10B, .11C, and .13D amended as an emergency provision effective September 23, 1991 (18:20 Md. R. 2197); emergency status extended at 18:26 Md. R. 2826; adopted permanently effective February 3, 1992 (19:2 Md. R. 152)

Regulations .19 and .20 adopted as an emergency provision effective October 1, 1992 (19:17 Md. R. 1602); emergency status extended at 19:24 Md. R. 2123; adopted permanently effective December 7, 1992 (19:24 Md. R. 2125)

Chapter revised effective May 9, 1994 (21:9 Md. R. 749)

Chapter revised effective February 4, 2002 (29:2 Md. R. 94)

Regulation .01B amended effective December 27, 2021 (48:26 Md. R. 1109)

Regulation .11A amended effective December 27, 2021 (48:26 Md. R. 1109)

Regulation .14 amended effective December 27, 2021 (48:26 Md. R. 1109)