15 U.S.C. § 80b–18a — State regulation of investment advisers
submitted 86 years ago by Pub. L. 86-750 to r/title-15-COMMERCE-AND-TRADE · 353 words · no verdicts yet
This section limits how much states can regulate investment advisers already registered in their home state. States can't pile on extra books-and-records or capital and bonding rules if the adviser already follows its home state's rules. States also can't require registration from an out-of-state adviser with fewer than six clients there and no local office, except for anti-fraud rules.
(a) Jurisdiction of State regulators. This subchapter doesn't take away a state securities regulator's power over a security or a person — as long as using that power doesn't conflict with this subchapter or its rules.
(b) Dual compliance purposes. A state can't require an investment adviser* to keep extra books or records beyond what its home state already requires, if the adviser (1) is registered or licensed in the state where it has its main office, and (2) already follows that home state's books-and-records rules.
(c) Limitation on capital and bond requirements. In the same way, a state can't demand a higher minimum net capital, or an extra bond, beyond what the adviser's home state requires — as long as the adviser (1) is registered or licensed there, and (2) already meets that home state's capital and bonding rules.
(d) National de minimis standard. No state or local law requiring advisers to register, get licensed, or qualify can reach an adviser — except for that law's anti-fraud rules — if the adviser (1) has no office in the state, and (2) had fewer than six clients living in that state over the past 12 months.
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.
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—
is registered or licensed as such in the State in which it maintains its principal office and place of business; and
is in compliance with the applicable books and records requirements of the State in which it maintains its principal office and place of business.
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—
is registered or licensed as such in the State in which it maintains its principal office and place of business; and
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.
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—
does not have a place of business located within the State; and
during the preceding 12-month period, has had fewer than 6 clients who are residents of that State.
Source credit: (Aug. 22, 1940, ch. 686, title II, § 222, as added Pub. L. 86–750, § 16, Sept. 13, 1960, 74 Stat. 888; amended Pub. L. 104–290, title III, § 304, Oct. 11, 1996, 110 Stat. 3438; Pub. L. 105–353, title III, § 301(d)(2), Nov. 3, 1998, 112 Stat. 3237; Pub. L. 111–203, title IX, § 985(e)(4), July 21, 2010, 124 Stat. 1935.)
- 1940Enacted · Pub. L. 86-750 · 74 Stat. 888
- 1996Amended · Pub. L. 104-290 · 110 Stat. 3438
- 1998Amended · Pub. L. 105-353 · 112 Stat. 3237
- 2010Amended · Pub. L. 111-203 · 124 Stat. 1935
A history note hasn’t been published yet. The record shows enactment by Pub. L. 86-750 on 1940-08-22.
all 0 arguments · sorted by: best
no arguments yet — make the first case