Section 203A -- State and Federal Responsibilities
Advisers subject to State authorities.
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 203, unless the
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
is an adviser to an investment company
registered under title I of this Act.
Definition. 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.
Advisers subject to Commission authority.
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--
that is registered under section 203
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
that is not registered under section
203 because that person is excepted from the definition of an investment
adviser under section 202(a)(11).
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.
Exemptions. Notwithstanding subsection (a),
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) would be unfair,
a burden on interstate commerce, or otherwise inconsistent with the purposes
of this section.
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
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