PRIA, Government Policy, Made Personal

Summary

States keep their power to regulate securities and people unless their rules clash with this federal law. A State cannot force an investment adviser to keep extra books, records, higher minimum net capital, or extra bonds beyond what the State where the adviser has its main office requires, as long as the adviser is registered or licensed in that main State and follows that State’s recordkeeping and capital/bond rules. A State also cannot make an adviser register there if the adviser has no office in the State and, during the preceding 12-month period, had fewer than 6 clients who live in the State. Anti-fraud rules still apply.

Title 15, §80b–18a

Commerce and Trade, Source: USLM XML via OLRC

(a)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)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)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)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.

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.

§80b–18a State Regulation of Investment Advisers

Summary

Title 15, §80b–18a

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Citations & Metadata