§ 80b-3a. — State and Federal responsibilities.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC80b-3a]
TITLE 15--COMMERCE AND TRADE
CHAPTER 2D--INVESTMENT COMPANIES AND ADVISERS
SUBCHAPTER II--INVESTMENT ADVISERS
Sec. 80b-3a. State and Federal responsibilities
(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) Filing depositories
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.
(e) 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.
(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.)
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.''
Section Referred to in Other Sections
This section is referred to in sections 80b-3, 6701 of this title;
title 29 section 1002.
