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Title 15, Commerce and TradeRelease 119-110

§80b–18a State Regulation of Investment Advisers

Title 15 › CHAPTER 2D — INVESTMENT COMPANIES AND ADVISERS › SUBCHAPTER II — INVESTMENT ADVISERS › § 80b–18a

Last updated Sep 22, 2026|Official source

Summary

State securities regulators keep their power over securities and people as long as their rules do not conflict with this federal law and its rules. A State cannot make an investment adviser keep extra books or records, require a higher minimum net capital, or demand extra bonds beyond what the State where the adviser’s main office is located already requires, if the adviser is registered or licensed there and follows that State’s record, capital, and bonding rules. A State also cannot force an adviser to register there if the adviser has no office in the State and had fewer than 6 clients who live in the State during the prior 12-month period. Laws that prohibit fraud still apply.

Full Legal Text

Title 15, §80b–18a

Commerce and Trade, Source: USLM XML via OLRC

(a)Jurisdiction of State regulators
Nothing in this subchapter shall affect the jurisdiction of the securities commissioner (or any agency or officer performing like functions) of any State over any security or any person insofar as it does not conflict with the provisions of this subchapter or the rules and regulations thereunder.
(b)Dual compliance purposes
No State may enforce any law or regulation that would require an investment adviser to maintain any books or records in addition to those required under the laws of the State in which it maintains its principal office and place of business, if the investment adviser—
(1)is registered or licensed as such in the State in which it maintains its principal office and place of business; and
(2)is in compliance with the applicable books and records requirements of the State in which it maintains its principal office and place of business.
(c)Limitation on capital and bond requirements
No State may enforce any law or regulation that would require an investment adviser to maintain a higher minimum net capital or to post any bond in addition to any that is required under the laws of the State in which it maintains its principal office and place of business, if the investment adviser—
(1)is registered or licensed as such in the State in which it maintains its principal office and place of business; and
(2)is in compliance with the applicable net capital or bonding requirements of the State in which it maintains its principal office and place of business.
(d)National de minimis standard
No law of any State or political subdivision thereof requiring the registration, licensing, or qualification as an investment adviser shall require an investment adviser to register with the securities commissioner of the State (or any agency or officer performing like functions) or to comply with such law (other than any provision thereof prohibiting fraudulent conduct) if the investment adviser—
(1)does not have a place of business located within the State; and
(2)during the preceding 12-month period, has had fewer than 6 clients who are residents of that State.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2010—Subsecs. (b), (c). Pub. L. 111–203 substituted “principal office and place of business” for “principal place of business” wherever appearing. 1998—Subsec. (b)(2). Pub. L. 105–353 substituted “principal” for “principle”. 1996—Pub. L. 104–290 substituted “regulation” for “control” in section catchline and amended text generally, designating existing provisions as subsec. (a), inserting heading, and adding subsecs. (b) to (d).

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 AmendmentAmendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an

Effective Date

note under section 5301 of Title 12, Banks and Banking.

Effective Date

of 1996 AmendmentAmendment by Pub. L. 104–290 effective 270 days after Oct. 11, 1996, see section 308(a) of Pub. L. 104–290, as amended, set out as a note under section 80b–2 of this title.

Reference

Citations & Metadata

Citation

15 U.S.C. § 80b–18a

Title 15, Commerce and Trade

Last Updated

Sep 22, 2026

Release point: 119-110