CITE

    15 USC Sec. 80b-18a                                         01/05/2009

EXPCITE

    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 2D - INVESTMENT COMPANIES AND ADVISERS
    SUBCHAPTER II - INVESTMENT ADVISERS

HEAD

    Sec. 80b-18a. State regulation of investment advisers

STATUTE

    (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 place of business, if the investment adviser -
        (1) is registered or licensed as such in the State in which it
      maintains its principal place of business; and
        (2) is in compliance with the applicable books and records
      requirements of the State in which it maintains its principal
      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 place of business, if
    the investment adviser -
        (1) is registered or licensed as such in the State in which it
      maintains its principal 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
      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.

SOURCE

    (Aug. 22, 1940, ch. 686, title II, Sec. 222, as added Pub. L. 86-
    750, Sec. 16, Sept. 13, 1960, 74 Stat. 888; amended Pub. L. 104-
    290, title III, Sec. 304, Oct. 11, 1996, 110 Stat. 3438; Pub. L.
    105-353, title III, Sec. 301(d)(2), Nov. 3, 1998, 112 Stat. 3237.)

AMENDMENTS

      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).
                     EFFECTIVE DATE OF 1996 AMENDMENT
      Amendment 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.