(1) If you hold client funds or securities, you must have a minimum net worth of $35,000 at all times. Meeting the minimum financial requirements ensures that a contractor-type licensee has a financially viable business and adequate working capital. If an applicant or licensee cannot meet the minimum financial requirements for a contractor`s licence in a particular class, they may consider other options for working in the industry that do not include accounting requirements. Contractors in certain categories are exempt from the requirement to provide financial information. Unless otherwise exempted, as a condition of the right to continue to operate in that state, each investment adviser must notify the Commissioner of the Department of Finance and Innovation (the „Commissioner”) before the close of business on the business day following the determination that the investment advisor`s net assets are less than the minimum required. Upon delivery, each investment advisor must submit a financial status report to the Commissioner before the close of business on the next business day, which includes: The CSCQ requires most contractor-type licence holders to demonstrate this financial viability when applying for a contractor`s licence and to report regularly on their finances. If you held or accepted funds and/or securities for clients during the reporting period, or if you owed them money or securities, you must file audited financial statements prepared by a public accountant or independent auditor. If you only have discretion over client funds or securities, the financial statements do not need to be audited. To determine your financial reporting obligations, you must define your maximum revenue category. The minimum financial requirements do not apply if you also hold a broker-dealer`s licence under section 25210 of the Code. If you are subject to the minimum financial requirements under section 260.237.2 of the CCR, you must file an annual financial report reflecting your financial situation with the Commissioner no later than 90 days after the end of your fiscal year. The annual financial report shall contain a balance sheet and a profit and loss account drawn up in accordance with generally accepted accounting principles. The annual report must also include a supporting schedule that includes the minimum financial requirements under section 260.237.2 of the CCRA.
The annual accounts shall be accompanied by a verification form. The audit form (a) must certify to the best of the knowledge and belief of the person conducting the audit that the financial statements and supporting documents are true and accurate, and (b) must be signed under penalty of perjury. You can use the RCC verification form 260.241.2(b) for this purpose. You must keep a record of proof of cash balances of all ledger accounts in the form of test balances and a record of minimum net asset calculations in accordance with CCR § 260.237.2 (at the end date of the test). Test balances and calculations currently need to be prepared at least once a month. [CCR § 260.241.3(j)] You are subject to minimum financial requirements if you (1) hold client funds or securities, (2) have discretion over client funds or securities, or (3) accept as an initial payment of more than $500 per client and six months or more in advance. The Minimum Financial Requirements (MFF) Regulation was introduced in Queensland on 1 January 2019 to reduce financial failures, liquidations and bankruptcies in the construction sector and ensure people are paid for their work. Part of the CSCQ`s mission is to build a stronger and fairer industry. You must hold a minimum capital requirement by the state in which you have your principal place of business, provided you are licensed or registered in that state and meet that state`s minimum capital requirements. If you are not licensed or registered in the state in which you have your principal place of business, you are subject to California`s minimum financial requirements.
If you are subject to the minimum financial requirements under section 260.237.2 of the CCR, you must file monthly reports with the Commissioner within 15 days of reducing your net worth to less than 120% of your minimum required net worth. Your interim report must include a balance sheet, an income statement, a supporting timetable with minimum financial requirements in accordance with CCR § 260.237.2 and an audit form. The audit form (a) must certify to the best of the knowledge and belief of the person conducting the audit that the financial statements and supporting documents are true and accurate, and (b) must be signed under penalty of perjury. You can use the RCC verification form 260.241.2(b) for this purpose. You must file the interim report until you have submitted three consecutive reports showing a net worth of more than 120% of your minimum required net worth. Note: This website refers to the rules in Title 10, Chapter 3, California Code of Regulations („CCR”). Please consult the information on the CCR and access the CCR sections mentioned on these websites. (3) If you accept an initial payment of more than $500 per customer and six months or more in advance, you must maintain a positive net worth at all times.