CITE
15 USC Sec. 80b-3a 01/05/2009
EXPCITE
TITLE 15 - COMMERCE AND TRADE
CHAPTER 2D - INVESTMENT COMPANIES AND ADVISERS
SUBCHAPTER II - INVESTMENT ADVISERS
HEAD
Sec. 80b-3a. State and Federal responsibilities
STATUTE
(a) Advisers subject to State authorities
(1) In general
No investment adviser that is regulated or required to be
regulated as an investment adviser in the State in which it
maintains its principal office and place of business shall
register under section 80b-3 of this title, unless the investment
adviser -
(A) has assets under management of not less than $25,000,000,
or such higher amount as the Commission may, by rule, deem
appropriate in accordance with the purposes of this subchapter;
or
(B) is an adviser to an investment company registered under
subchapter I of this chapter.
(2) "Assets under management" defined
For purposes of this subsection, the term "assets under
management" means the securities portfolios with respect to which
an investment adviser provides continuous and regular supervisory
or management services.
(b) Advisers subject to Commission authority
(1) In general
No law of any State or political subdivision thereof requiring
the registration, licensing, or qualification as an investment
adviser or supervised person of an investment adviser shall apply
to any person -
(A) that is registered under section 80b-3 of this title as
an investment adviser, or that is a supervised person of such
person, except that a State may license, register, or otherwise
qualify any investment adviser representative who has a place
of business located within that State; or
(B) that is not registered under section 80b-3 of this title
because that person is excepted from the definition of an
investment adviser under section 80b-2(a)(11) of this title.
(2) Limitation
Nothing in this subsection shall prohibit the securities
commission (or any agency or office performing like functions) of
any State from investigating and bringing enforcement actions
with respect to fraud or deceit against an investment adviser or
person associated with an investment adviser.
(c) Exemptions
Notwithstanding subsection (a) of this section, the Commission,
by rule or regulation upon its own motion, or by order upon
application, may permit the registration with the Commission of any
person or class of persons to which the application of subsection
(a) of this section would be unfair, a burden on interstate
commerce, or otherwise inconsistent with the purposes of this
section.
(d) State assistance
Upon request of the securities commissioner (or any agency or
officer performing like functions) of any State, the Commission may
provide such training, technical assistance, or other reasonable
assistance in connection with the regulation of investment advisers
by the State.
SOURCE
(Aug. 22, 1940, ch. 686, title II, Sec. 203A, as added Pub. L. 104-
290, title III, Sec. 303(a), Oct. 11, 1996, 110 Stat. 3437;
amended Pub. L. 109-290, Sec. 7(b)(1), Sept. 29, 2006, 120 Stat.
1321.)
AMENDMENTS
2006 - Subsecs. (d), (e). Pub. L. 109-290 redesignated subsec.
(e) as (d) and struck out heading and text of former subsec. (d).
Text read as follows: "The Commission may, by rule, require an
investment adviser -
"(1) to file with the Commission any fee, application, report,
or notice required by this subchapter or by the rules issued
under this subchapter through any entity designated by the
Commission for that purpose; and
"(2) to pay the reasonable costs associated with such filing."
EFFECTIVE DATE
Section effective 270 days after Oct. 11, 1996, see section
308(a) of Pub. L. 104-290, as amended, set out as an Effective Date
of 1996 Amendment note under section 80b-2 of this title.
CONTINUED STATE AUTHORITY
Section 307 of title III of Pub. L. 104-290 provided that:
"(a) Preservation of Filing Requirements. - Nothing in this title
[see Short Title of 1996 Amendment note set out under section 80b-
20 of this title] or any amendment made by this title prohibits
the securities commission (or any agency or office performing like
functions) of any State from requiring the filing of any documents
filed with the Commission pursuant to the securities laws solely
for notice purposes, together with a consent to service of process
and any required fee.
"(b) Preservation of Fees. - Until otherwise provided by law,
rule, regulation, or order, or other administrative action of any
State, or any political subdivision thereof, adopted after the date
of enactment of this Act [Oct. 11, 1996], filing, registration, or
licensing fees shall, notwithstanding the amendments made by this
title, continue to be paid in amounts determined pursuant to the
law, rule, regulation, or order, or other administrative action as
in effect on the day before such date of enactment.
"(c) Availability of Preemption Contingent on Payment of Fees. -
"(1) In general. - During the period beginning on the date of
enactment of this Act [Oct. 11, 1996] and ending 3 years after
that date of enactment, the securities commission (or any agency
or office performing like functions) of any State may require
registration of any investment adviser that fails or refuses to
pay the fees required by subsection (b) in or to such State,
notwithstanding the limitations on the laws, rules, regulations,
or orders, or other administrative actions of any State, or any
political subdivision thereof, contained in subsection (a), if
the laws of such State require registration of investment
advisers.
"(2) Delays. - For purposes of this subsection, delays in
payment of fees or underpayments of fees that are promptly
remedied in accordance with the applicable laws, rules,
regulations, or orders, or other administrative actions of the
relevant State shall not constitute a failure or refusal to pay
fees."