Illinois investment adviser registration is the process of filing Form ADV (Parts 1A, 1B, 2A, and 2B) through the Investment Adviser Registration Depository (IARD) and submitting Illinois-specific exhibits to the Illinois Securities Department so a firm and its representatives can lawfully give investment advice for compensation in Illinois. Every adviser with a place of business in Illinois, or with more than five Illinois clients in the past 12 months, must register under the Illinois Securities Law of 1953 unless an exemption applies.
Getting this filing wrong is expensive. The Illinois Securities Department reports that more than 30% of first-time IA applications are flagged deficient on first review, with custody, financial reporting, and Item 5 staffing errors leading the list, and the average correction cycle adds 45–90 days to approval under the current 2026 14 Ill. Adm. Code 130 rules.
- 📋 How to complete every box on Form ADV Parts 1A, 1B, 2A, 2B and Form U4 the way Illinois reviewers expect
- 💵 Exact 2026 Illinois fees, the $400 firm fee, the $150 IAR fee, and how to fund your IARD account
- 🧾 Which Illinois-specific exhibits (consent to service, balance sheet, surety bond) you must attach and when
- 🧑💼 Three full filing walkthroughs for a solo Chicago RIA, a two-person cross-border firm, and a multi-IAR shop
- ⚠️ The ten most common rejection triggers and how to fix them before the Department issues a deficiency letter
What Illinois Investment Adviser Registration Is and Who Must File It
Illinois investment adviser registration is a state-level license that authorizes a firm or person to give investment advice for compensation to Illinois residents. The license is granted by the Illinois Secretary of State, acting through the Illinois Securities Department, under Section 8 of the Illinois Securities Law of 1953, 815 ILCS 5/8. The current Form ADV used statewide reflects the October 2024 SEC revision, and Illinois has adopted that version through 14 Ill. Adm. Code 130.821.
You must register in Illinois if you meet any of three triggers. First, your firm has a place of business in Illinois. Second, you advised more than five Illinois clients during the prior 12 months (the de minimis line drawn by NASAA Model Rule 203(b)(3)-1). Third, you hold yourself out to the public in Illinois as an investment adviser.
Federally covered advisers (those with $100 million or more in regulatory assets under management, or advisers to registered investment companies) do not register with Illinois. Instead, they make a notice filing through IARD and pay the same Illinois fee, per Section 8.A of 815 ILCS 5/. Solicitors who refer Illinois clients to other advisers may also need to register as investment adviser representatives (IARs) under 14 Ill. Adm. Code 130.850.
The agency that receives the filing is the Illinois Securities Department, Investment Adviser Section, in Springfield. The statute that powers the filing is the Illinois Securities Law of 1953. The deadline that governs annual renewal is December 31 each year. The penalty for advising Illinois clients without registration runs up to $10,000 per violation plus rescission liability under 815 ILCS 5/12, and the Department can also bar the principals from future registration.
Before You Start: Documents and Information You Need
Open a folder on your desktop named Illinois IA Registration and gather every item below before you log in to IARD. Filing without these in hand is the single biggest reason applications stall, because IARD times out after 30 minutes of inactivity and a half-finished Form ADV often returns errors that erase prior entries. The Illinois reviewers also cross-check every line against the documents you upload, so missing items create a deficiency letter loop that can stretch your approval to four months.
- CRD/IARD entitlement package. You need a FINRA Entitlement form submitted and approved before you can even open Form ADV. Without it, you cannot log in. Allow 7–10 business days.
- Firm legal name, EIN, and formation documents. The firm’s articles of organization or incorporation must be filed with the Illinois Secretary of State Business Services before registration. Mismatch with Form ADV Item 1 is an automatic deficiency.
- Place-of-business address and CRD branch number. Every Illinois office must be listed on Schedule D, Section 1.F. Missing branches create supervisory gaps that the Department flags under Section 130.852.
- Form U4 for each IAR. Each adviser representative needs fingerprints (live-scan or card), 5-year residential history, 10-year employment history, and disclosure answers. Without U4s, the firm registration cannot be effective.
- Surety bond, if applicable. Illinois requires a $10,000 surety bond for advisers with custody or discretion who do not meet the $35,000 net worth requirement. Order from a licensed Illinois surety carrier.
- Audited or unaudited balance sheet. A balance sheet dated within 90 days of filing must be uploaded as Exhibit. Custody firms must submit an audited balance sheet.
- Form ADV Part 2A brochure and Part 2B brochure supplements. Drafted in plain English, narrative form, following the SEC Part 2 instructions.
- Written supervisory procedures and Code of Ethics. Required by 14 Ill. Adm. Code 130.853. The Department asks for them on review even though they are not uploaded with Form ADV.
- Consent to Service of Process (Form U2). Illinois requires this signed and notarized, then uploaded.
- Funds in your IARD daily account. Illinois firm fee is $400, each IAR is $150, and the IARD system fee is added on top. Underfunding the account stops the filing from being submitted.
Where to Get the Form and How to Access It
You do not download Form ADV as a PDF and mail it. The form is filed electronically only, through the IARD system operated by FINRA on behalf of NASAA and the SEC. To access IARD, your firm must first complete a Super Account Administrator (SAA) entitlement form and mail it to FINRA Entitlement, which issues your login credentials within roughly 7–10 business days.
Once you log in, you will see a dashboard with links to Form ADV, Form U4, Notice Filings, and Renewals. Illinois-specific exhibits (balance sheet, consent to service, surety bond) are uploaded in the Form ADV Submission screen under the Documents tab. The Illinois Securities Department does not accept paper Form ADV filings except in narrow hardship cases under 14 Ill. Adm. Code 130.821(b).
The blank, current-version Form ADV is also viewable as a reference PDF on the SEC Form ADV page, with a revision date of October 2024 stamped in the lower-left corner. Confirm that revision date before you start; using an older PDF as your guide leads to mismatched item numbers because Items 1.O, 5.K, and 7.B were renumbered in 2024.
If you are an existing SEC-registered adviser making an Illinois notice filing, you do not refile Form ADV. You log in to IARD, go to the Notice Filings tab, check Illinois, and pay the $400 fee. The same form on file with the SEC is automatically transmitted to the Illinois Securities Department.
Step-by-Step: How to Fill Out Illinois Investment Adviser Registration Line by Line
Form ADV Part 1A, Item 1: Identifying Information
Item 1 asks who the firm is on paper. You will fill in the legal name, any DBAs, the principal office address, the firm’s CRD number once assigned, IRS EIN, fiscal year end, contact employee, and website addresses. Type the legal name exactly as it appears on the Illinois Secretary of State business filing, in all caps if that is how the state recorded it.
A specific example: Maria Chen, founder of Lakeshore Wealth Advisors LLC, types “LAKESHORE WEALTH ADVISORS LLC” in Item 1.A and “Lakeshore Wealth” in Item 1.B as her DBA. She enters her Chicago office at 222 N. LaSalle St., Suite 800, Chicago, IL 60601 in Item 1.F.
A common nuance is the “other names” question in Item 1.B. If Maria registered the DBA “Lakeshore Wealth” with the Cook County Clerk, she must list it; if she only uses it on a website without a county filing, she still must list it because the SEC and Illinois treat any public-facing name as an “other name.”
The most common mistake on Item 1 is entering the principal office as a residential address in a state where the firm is not actually registered. The direct consequence: Illinois reviewers will ask for proof of an Illinois place of business, and if the firm has none, the Department reclassifies the application as a non-resident filing, which requires the consent to service form and changes the bond analysis.
A misconception filers carry: many believe Item 1 is “just contact info” and can be edited later without consequence. In fact, every change to Item 1 triggers an other-than-annual amendment within 30 days under Rule 204-1, and Illinois enforces the same 30-day window.
Form ADV Part 1A, Item 2: SEC Registration
Item 2 asks whether you are eligible for SEC registration or must register with the states. For Illinois-only filers, you check the box at Item 2.A(2) confirming you are not eligible for SEC registration because your assets under management are below $100 million. Read SEC Rule 203A-1 carefully; if your AUM is between $100M and $110M, you may still stay state-registered.
A specific example: Lakeshore Wealth has $42 million in regulatory AUM. Maria checks Item 2.B(1) and lists Illinois as the state of registration. If she had $128 million, she would check Item 2.A(1) instead and skip Part 1B entirely.
A nuance: mid-sized advisers with $25M–$100M in AUM register with the state, not the SEC, unless they are not subject to examination by their home state. Illinois does examine advisers, so a $60M Illinois firm registers in Illinois, not with the SEC.
The most common mistake is checking the SEC eligibility box because the founder previously worked at an SEC-registered firm. The consequence is a hard rejection from IARD because the SEC will reject the filing within 24 hours, the firm loses its place in the queue, and Illinois never sees the application.
A misconception: many founders think they can “choose” to register with the SEC for prestige. SEC registration is mandatory above the threshold and prohibited below it; there is no choice unless you operate in 15 or more states.
Form ADV Part 1A, Item 5: Employees, Clients, and Compensation
Item 5 is the operational heart of Form ADV. You report total employees, employees performing advisory functions, IARs, advisory clients by category, regulatory AUM, and types of compensation. Illinois reviewers cross-check Item 5.A (total employees) against Item 5.B (advisory employees) and against Schedule A’s list of direct owners.
A specific example: Lakeshore Wealth lists 2 total employees, 2 performing advisory functions, 1 IAR (Maria) registered in Illinois, 38 individual clients, and $42,118,500 in discretionary regulatory AUM as of 12/31/2025. Round AUM to the nearest dollar; do not estimate.
A nuance: independent contractors who solicit Illinois clients count as IARs under 14 Ill. Adm. Code 130.850, even if they are not W-2 employees. Failing to count them is a frequent deficiency.
The most common mistake on Item 5 is reporting assets instead of regulatory AUM. Regulatory AUM includes proprietary accounts, family accounts, and accounts under continuous and regular supervision even without compensation. The consequence: if you understate AUM and cross the $100M line on the true number, you are unregistered with the SEC and committing a federal violation.
A misconception: filers often think Item 5.D (clients by category) is just a tally. The Department uses these numbers to flag custody risk, retail concentration, and the need for a brochure delivery audit, so accuracy matters.
Form ADV Part 1A, Item 7: Financial Industry Affiliations
Item 7 captures relationships with broker-dealers, banks, insurance companies, and other financial firms. Section 7.A lists affiliations; Section 7.B lists private funds the adviser manages. Illinois reviewers focus on dual registrations and any affiliated broker-dealer because those create custody and conflict-of-interest issues under 815 ILCS 5/12.F.
A specific example: Maria’s husband owns a small insurance agency. Because they are related and she sometimes refers clients there, Maria checks Item 7.A.1 and lists “Chen Insurance Services LLC” with the relationship code for spouse-controlled affiliate.
A nuance: the test is “control” plus “related person,” not common ownership alone. A 10% passive investment in a friend’s broker-dealer is not a Section 7.A affiliation; a 25% stake plus a board seat is.
The most common mistake is leaving Item 7 blank because the founder feels the affiliation is “minor.” The consequence is a material misstatement on Form ADV, which the Department treats as grounds for denial under 815 ILCS 5/8.E(1)(g).
A misconception: many founders think Item 7.B applies only to large hedge funds. It applies to any private fund the adviser advises, including a single-LP real estate fund with $500,000 in assets.
Form ADV Part 1A, Item 8: Participation or Interest in Client Transactions
Item 8 asks whether you or a related person buys or sells securities for client accounts, recommends affiliated securities, or has discretionary authority. Each “yes” requires further explanation in Schedule D. Illinois pays close attention to Item 8.A.3 (proprietary trading) because of front-running risk.
A specific example: Lakeshore Wealth answers “Yes” to Item 8.A.1 (recommend securities the firm or a related person owns) because Maria owns shares of three ETFs she also recommends. She discloses this conflict in Item 9 of her Part 2A brochure.
A nuance: simply owning the same broad-market ETF as your clients does not require a “Yes” if the ETF is widely held and no recommendation is influenced by your position. Read SEC Form ADV General Instruction 6 carefully.
The most common mistake is answering “No” to all of Item 8 to look clean. The consequence is that the first state exam will catch the inconsistency, the Department will issue a cease-and-desist, and the firm faces a $5,000–$10,000 fine per violation.
A misconception: filers think Item 8 is only about sales. It also covers recommendations, soft-dollar arrangements, and any compensation tied to securities transactions.
Form ADV Part 1A, Item 9: Custody
Item 9 asks if the firm has custody of client cash or securities and, if so, how much and through what custodian. Illinois treats custody as a high-risk category triggering surety bond, audited financials, and surprise audit requirements under 14 Ill. Adm. Code 130.404.
A specific example: Lakeshore Wealth uses Schwab as qualified custodian and has no direct access to client funds. Maria answers “No” to Item 9.A but “Yes” to Item 9.B(2) because she deducts advisory fees directly from client accounts.
A nuance: fee deduction is technically custody under federal rules but Illinois exempts it from the bond requirement if four specific conditions are met (written authorization, custodian sends statements directly, fee invoice copy to client, no other custody). Confirm under Section 130.404(b).
The most common mistake is answering “No” to Item 9 when the firm acts as trustee for a client trust. The consequence: the Department will require an immediate amendment, a $10,000 surety bond, and an annual surprise audit by an independent CPA, which costs $5,000–$15,000 a year.
A misconception: founders often believe holding client login credentials is not custody. It is custody under SEC and Illinois interpretations because it gives the adviser the ability to withdraw funds.
Form ADV Part 1A, Item 11: Disclosure Information
Item 11 is the disciplinary disclosure section. You answer 14 yes/no questions covering criminal, regulatory, civil, and self-regulatory events for the firm and every “advisory affiliate.” Each “Yes” requires a Disclosure Reporting Page (DRP).
A specific example: Maria has a 2014 DUI misdemeanor. She answers “Yes” to Item 11.B(1), opens a Criminal DRP, and discloses the date, court, charge, plea, and disposition in plain narrative form.
A nuance: Illinois does not automatically deny based on a single misdemeanor more than seven years old, but it does require the DRP and may ask for a written statement of rehabilitation under 815 ILCS 5/8.E(1)(c).
The most common mistake is answering “No” because the matter was expunged or sealed. Form ADV requires disclosure even of expunged matters unless a court order specifically vacates the conviction. The consequence of a missed disclosure is statutory denial and a permanent record of dishonesty on CRD.
A misconception: filers think DRPs guarantee denial. In practice, well-written DRPs with clear facts and rehabilitation evidence are approved at a rate above 70% in Illinois.
Form ADV Part 1B: State-Specific Questions
Part 1B is the state addendum that Illinois requires. It asks state-specific questions about bonds, financial condition, custody, and any home-state disciplinary matters. The form pulls Illinois questions automatically once you check Illinois in Item 2.B(1).
A specific example: Maria answers Item 2.A in Part 1B “No” because Lakeshore is solvent, with $48,000 in net worth, and answers Item 2.G “No” because she has no pending arbitration.
A nuance: Illinois requires a minimum net worth of $35,000 for advisers with discretion or custody under Section 130.404. If you fall below, you must post a $10,000 bond and file a notice within one business day.
The most common mistake is answering Part 1B as if it were federal. The questions overlap with Part 1A but ask for state-specific facts; copy-pasting answers misses Illinois-only items like the home-state bond.
A misconception: filers think Part 1B is optional for notice filers. It is, but state registrants must complete every question on Part 1B in full.
Form ADV Part 2A: The Brochure
Part 2A is the firm’s narrative brochure, written in plain English under SEC Part 2 General Instructions. It has 18 mandatory items, including advisory business, fees, performance-based fees, types of clients, methods of analysis, disciplinary information, code of ethics, and brokerage practices. Illinois reviewers read every word.
A specific example: Maria writes Item 4 (“Advisory Business”) as a one-page section starting “Lakeshore Wealth Advisors LLC has provided investment advisory services since 2024…” and lists her three service models with fees in Item 5.
A nuance: Illinois reviewers reject brochures that copy SEC sample language verbatim. Each item must be specific to your firm; generic templates trigger a “lack of plain English” deficiency under Section 130.853(b).
The most common mistake is forgetting to update the cover page revision date when amending. The consequence is that clients may receive a stale brochure, which Illinois treats as a brochure-rule violation under Section 130.853.
A misconception: founders think Part 2A is “marketing.” It is a regulatory document, and exaggerated language (“our proprietary algorithm beats the market”) creates anti-fraud exposure under 815 ILCS 5/12.F and G.
Form ADV Part 2B: Brochure Supplements
Part 2B is a one-to-three-page supplement for each IAR who provides advice or has discretion over Illinois client accounts. It covers educational background, business experience for the past five years, disciplinary information, other business activities, additional compensation, and supervision.
A specific example: Maria’s Part 2B lists her CFA charter (2018), her MBA from Northwestern Kellogg (2017), and her prior employment at Northern Trust (2018–2024).
A nuance: if an IAR has no disciplinary history, you still must include the heading “Item 3 – Disciplinary Information” with the sentence “There are no legal or disciplinary events to report.”
The most common mistake is omitting a Part 2B for a junior IAR who “doesn’t talk to clients.” If the junior has discretionary authority, Part 2B is mandatory, and missing it stalls the firm’s registration.
A misconception: founders think one Part 2B can cover the whole firm. Each individual IAR needs their own supplement.
Form U4: Investment Adviser Representative Filing
Each IAR files Form U4 through CRD inside IARD. The form covers identifying information, residential history (5 years), employment history (10 years), other businesses, examinations, and 14 disclosure questions mirroring Form ADV Item 11. Fingerprints are submitted via FINRA’s fingerprinting service.
A specific example: Maria’s U4 lists her Series 65 exam passed 04/15/2024, her residential address since 2020, and her employment from 2018 forward.
A nuance: Illinois accepts the Series 65, the Series 7 + 66 combination, or qualifying professional designations (CFP, CFA, ChFC, PFS, CIC) per Section 130.851.
The most common mistake on U4 is leaving gaps in the 10-year employment history. Any unexplained month longer than 90 days triggers a deficiency. The consequence: the IAR’s registration is held up, and the firm cannot service Illinois clients through that person.
A misconception: filers think U4 questions ask only about convictions. Several questions ask about charges and investigations even if no conviction followed.
Three Filled-Out Examples Using Real Scenarios
Scenario 1: Maria Chen, Solo Chicago RIA Filing for the First Time
| Form Section | What Maria Enters |
|---|---|
| ADV 1A Item 1.A (Legal Name) | LAKESHORE WEALTH ADVISORS LLC |
| ADV 1A Item 1.F (Principal Office) | 222 N. LaSalle St., Suite 800, Chicago, IL 60601 |
| ADV 1A Item 2.B (State Registration) | Illinois only — checked |
| ADV 1A Item 5.F (Regulatory AUM) | $42,118,500 discretionary, $0 non-discretionary |
| ADV 1A Item 9.B (Custody — fee deduction) | Yes, fee deduction only; Schwab is qualified custodian |
| ADV 1A Item 11 (Disclosure) | Yes to 11.B(1) — 2014 DUI; DRP attached |
| ADV 1B Item 2.G (Bond) | No bond required; net worth $48,000 |
| ADV Part 2A Item 5 (Fees) | 1.00% AUM tiered, billed quarterly in arrears |
| Form U4 — Maria | Series 65 (2024), CFA charter, prior firm Northern Trust |
| Fees paid through IARD | $400 firm + $150 IAR + $185 IARD system fees |
Scenario 2: Carlos Rivera, Two-Person Indiana Firm Notice Filing into Illinois
| Form Section | What Carlos Enters |
|---|---|
| ADV 1A Item 1.A (Legal Name) | RIVERA CAPITAL PARTNERS LLC |
| ADV 1A Item 1.F (Principal Office) | 500 E. 96th St., Indianapolis, IN 46240 |
| ADV 1A Item 2.A (SEC Eligibility) | Not eligible — checked Item 2.B(1) for IN home state, IL notice filing |
| ADV 1A Item 5.B (Advisory Employees) | 2 — Carlos and one IAR |
| ADV 1A Item 5.F (Regulatory AUM) | $87,400,000 discretionary |
| ADV 1A Schedule D Section 1.F (IL Branch) | No Illinois office; serving 8 IL clients remotely |
| ADV 1B Illinois — Bond | $10,000 surety bond posted, non-resident requirement |
| Consent to Service of Process (Form U2) | Signed, notarized, uploaded to IARD documents |
| Form U4 — Illinois IAR | Series 65 (2019), residence Indiana, IL registration only |
| Fees paid through IARD | $400 IL notice + $150 IAR + Indiana home-state renewal |
Scenario 3: Janet Park, Chicago Firm Registering Three IARs at Once
| Form Section | What Janet Enters |
|---|---|
| ADV 1A Item 1.A (Legal Name) | PARK & ASSOCIATES INVESTMENT MANAGEMENT INC. |
| ADV 1A Item 1.F (Principal Office) | 200 W. Madison St., 24th Floor, Chicago, IL 60606 |
| ADV 1A Item 5.A (Total Employees) | 6 — three IARs and three administrative staff |
| ADV 1A Item 5.F (Regulatory AUM) | $71,600,000 discretionary |
| ADV 1A Item 7.A (Affiliations) | Affiliated insurance agency listed on Schedule D |
| ADV 1A Item 9.A (Custody) | Yes — firm acts as trustee for two client trusts |
| ADV 1B Illinois — Audited Balance Sheet | Uploaded, dated 03/31/2026, prepared by PCAOB-registered CPA |
| ADV Part 2B Supplements | Three supplements, one per IAR |
| Form U4 (3 IARs) | Three U4s, three fingerprint cards, three Series 65 exams |
| Fees paid through IARD | $400 firm + $450 (three IARs) + IARD system fees |
How to File the Completed Form
You file the completed Form ADV through the IARD portal only. Click Form ADV > New Submission, complete every red-flagged item, upload your Illinois exhibits in the Documents tab, fund your IARD daily account, and click Submit. The system runs an automatic completeness check and returns red errors that must be cleared before submission.
The Illinois Securities Department does not accept paper filings of Form ADV under 14 Ill. Adm. Code 130.821. The address for the Department, used only for paper exhibits in hardship cases, is the Illinois Securities Department, 421 East Capitol Avenue, 2nd Floor, Springfield, IL 62701, with a fax line at 217-558-0526. For all electronic submissions, the URL is the IARD portal above.
Fees are paid by ACH transfer into the IARD daily account. The Illinois firm fee is $400 and each IAR fee is $150, payable annually under Section 11.A of 815 ILCS 5/. IARD also charges a system fee of approximately $165–$185 per firm per year. Credit cards are not accepted; only ACH from a U.S. bank.
Expected processing time is 30–45 days for a clean filing and 90–120 days if a deficiency letter is issued. Once approved, you receive an email from the Illinois Securities Department and your CRD record updates to “Approved.” Save the approval email, the IARD payment confirmation, and a PDF copy of the as-filed Form ADV as your proof of filing; the Department does not issue a paper certificate.
What Happens After You File
After submission, the application enters the Illinois Securities Department’s queue, where a registration analyst reviews Form ADV, the Part 2 brochure, the financials, and every Form U4. Most first-time applicants receive a written deficiency letter within 15–25 business days asking for clarifications, missing exhibits, or revised brochure language. You typically have 30 days to respond.
Once deficiencies are cleared, the analyst issues an order of registration and the CRD record updates to Approved. You can immediately begin advising Illinois clients. The firm’s public IAPD record goes live within 24 hours of approval, and prospective clients can look you up by name.
Ongoing obligations begin the moment you are approved. You must update Form ADV through an annual updating amendment within 90 days of fiscal year end, file other-than-annual amendments within 30 days of any material change, deliver brochures within timing windows in Rule 130.853, maintain books and records under Section 130.851, and renew the registration during the November–December IARD renewal window.
The Illinois Securities Department also conducts periodic exams. First-time advisers can expect a routine exam within the first 12–18 months of approval, focused on books and records, custody, advertising, and brochure delivery. Treat the exam as a chance to fix small issues before they become enforcement matters.
Mistakes to Avoid When Filling Out the Form
- Listing the wrong fiscal year end. The annual amendment deadline is calculated from this date, and a wrong entry causes a missed filing and a $100 late fee per day.
- Understating regulatory AUM. Triggers federal vs. state registration confusion and can void the entire filing.
- Forgetting to upload the consent to service of process for non-resident filers. Causes an automatic deficiency letter that adds 30+ days to approval.
- Copy-pasting Part 2A from a sample brochure. Illinois rejects template language and requires firm-specific narrative.
- Failing to disclose a 10-year-old misdemeanor on Item 11. Deemed material misrepresentation and grounds for denial.
- Using a personal bank account for the IARD daily account. IARD requires a business account; personal accounts are rejected.
- Skipping fingerprints for IARs. No fingerprints means no IAR registration and no client work.
- Assuming fee deduction is not custody. Item 9.B must reflect it, even though no bond is required if four exemption conditions are met.
- Listing only the founder on Schedule A. Every direct owner of 5%+ must be listed, including spouses with marital property rights.
- Submitting before funding the IARD account. The system will not transmit the filing, and your draft can expire after 30 days.
- Forgetting Part 2B supplements for advisers with discretion. Leaves the firm exposed to a brochure-rule violation.
- Mismatched names between Schedule A and the Illinois Secretary of State business filing. Causes a name-verification deficiency.
Do’s and Don’ts
- Do confirm your Form ADV is the October 2024 revision before drafting, because item numbers changed and old templates do not match.
- Do fund your IARD daily account at least three business days before submission, because ACH transfers take 24–72 hours to clear.
- Do keep a dated PDF copy of the as-filed Form ADV in a secure folder, because IARD only displays the current version.
- Do read the Illinois Securities Department FAQs before drafting your brochure, because the Department posts current pet peeves.
- Do order your surety bond from a carrier licensed in Illinois, because the Department rejects out-of-state-only carriers.
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Do use plain English in Part 2A, because the SEC Plain English Handbook is the actual standard.
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Don’t answer “No” to a disciplinary question to avoid disclosure, because CRD cross-checks against court records and a missed disclosure ends careers.
- Don’t submit on the last day of the renewal window, because IARD slowdowns in late December cause failed transmissions.
- Don’t forget to designate a chief compliance officer in Item 1.J, because Illinois treats the omission as a written supervisory procedures defect.
- Don’t use an old Form ADV PDF as your guide, because Items 1.O, 5.K, and 7.B were renumbered in October 2024.
- Don’t assume “robo-only” advisers escape Part 2B, because any human discretion still triggers supplement requirements.
- Don’t ignore deficiency letters past the 30-day response window, because the Department can withdraw the application and force you to refile from scratch.
Pros and Cons of Filing on Your Own vs. With Help
- Pro of filing pro se: You save $3,000–$8,000 in legal or compliance consulting fees, money small RIAs need for marketing.
- Pro of filing pro se: You learn your own filing intimately, which makes annual amendments and exams much easier.
- Pro of filing pro se: You control the timeline and can submit the moment you are ready.
- Pro of filing pro se: You avoid the back-and-forth of explaining your business model to a third party.
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Pro of filing pro se: Free resources from NASAA and the Illinois Securities Department make a clean filing achievable.
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Con of filing pro se: First-time deficiency rate is over 30%, adding 30–90 days to approval.
- Con of filing pro se: Plain-English brochure drafting is harder than it looks, and weak brochures invite enforcement.
- Con of filing pro se: You may miss subtle custody triggers (login credentials, trustee roles), which is the highest-risk category.
- Con of filing pro se: You bear the full cost of any delay in client onboarding while the application sits in deficiency.
- Con of filing pro se: Mistakes on Item 11 disclosures are difficult to undo and follow you on CRD permanently.
Illinois Registration vs. SEC Registration
| Dimension | Illinois Registration vs. SEC Registration |
|---|---|
| AUM threshold | Illinois: under $100M; SEC: $100M+ |
| Statute | Illinois: 815 ILCS 5/8; SEC: Investment Advisers Act of 1940 |
| Fee | Illinois: $400 firm, $150 IAR; SEC: $40–$225 firm, no IAR fee |
| Examiner | Illinois Securities Department; SEC Division of Examinations |
| Bond / Net Worth | Illinois: $35,000 net worth or $10,000 bond; SEC: no state bond |
| Brochure Delivery | Both require Part 2A annually plus material change updates |
| Renewal | Both via IARD November–December window |
| Custody Audit | Illinois: surprise audit if true custody; SEC: same standard |
FAQs
Do I need to register in Illinois if I have only three Illinois clients and no Illinois office?
No. Illinois follows the NASAA de minimis rule of five or fewer clients in 12 months, so three remote clients without an Illinois office do not trigger registration.
Does the Illinois Securities Department accept the Series 66 alone for an IAR?
No. Series 66 must be paired with the Series 7; Series 65 alone is acceptable, per Section 130.851.
Can I check “No” to Item 9 if I only deduct fees?
No. Fee deduction is custody under SEC Rule 206(4)-2; check Item 9.B(2) and confirm the four-condition exemption applies.
Do I need to disclose a sealed juvenile arrest on Form U4?
No. Sealed juvenile records are excluded from Form U4 disclosure unless the matter was transferred to adult court.
Is the $35,000 net worth requirement waived if I post a bond?
Yes. A $10,000 surety bond from an Illinois-licensed carrier substitutes for the net worth threshold under Section 130.404.
Do I write my legal name or DBA in Item 1.A?
No. Item 1.A is for the legal name only; the DBA goes in Item 1.B as an “other name.”
Can I check the SEC eligibility box at $90M AUM if I expect to grow?
No. SEC eligibility is determined by current AUM, not projected growth, until you reach the $100M–$110M buffer band.
Do solicitors paid by an Illinois adviser need to register?
Yes. Solicitors meeting the IAR definition must register with Illinois under Section 130.850, even if paid only on referral.
Is Form U4 fingerprinting required for non-resident IARs?
Yes. Every IAR must submit fingerprints through the FINRA fingerprint program, regardless of state of residence.
Can I file Form ADV on paper if my internet is slow?
No. Illinois mandates electronic filing through IARD; paper is allowed only in the rare hardship exception under 14 Ill. Adm. Code 130.821(b).
Do I include my spouse on Schedule A as an indirect owner?
Yes. If marital property law gives your spouse a 5%+ interest in firm equity, list them as an indirect owner on Schedule B.
Is the Illinois firm fee refundable if my application is denied?
No. The $400 firm fee and $150 IAR fee are non-refundable filing fees, even if the registration is withdrawn or denied.
Do I need a written supervisory procedures manual before filing?
Yes. Section 130.853 requires WSPs in place at the moment of registration, even though the manual is not uploaded with Form ADV.
Can I list my home address as the principal office?
Yes. A home office is permitted, but it becomes a books-and-records location subject to inspection during Illinois exams.
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