Rules and Regulations
promulgated
under the
Investment Advisers Act of 1940
Rule 206(3)-1 -- Exemption of Investment Advisers Registered as Broker-Dealers
in Connection with the Provision of Certain Investment Advisory Services
An investment adviser which is a broker or dealer
registered pursuant to section 15 of the
Securities Exchange Act of 1934 shall be exempt from section
206(3) in connection with any transaction in relation to which such broker
or dealer is acting as an investment adviser solely (1) by means of publicly
distributed written materials or publicly made oral statements; (2) by means
of written materials or oral statements which do not purport to meet the objectives
or needs of specific individuals or accounts; (3) through the issuance of
statistical information containing no expressions of opinion as to the investment
merits of a particular security; or (4) any combination of the foregoing services:
Provided, however, That such materials and oral statements include
a statement that if the purchaser of the advisory communication uses the services
of the adviser in connection with a sale or purchase of a security which is
a subject of such communication, the adviser may act as principal for its
own account or as agent for another person.
For the purpose of this Rule, publicly distributed
written materials are those which are distributed to 35 or more persons who
pay for such materials, and publicly made oral statements are those made simultaneously
to 35 or more persons who pay for access to such statements.
NOTE: The requirement that the investment adviser disclose that it
may act as principal or agent for another person in the sale or purchase of
a security that is the subject of investment advice does not relieve the investment
adviser of any disclosure obligation which, depending upon the nature of the
relationship between the investment adviser and the client, may be imposed
by subparagraphs (1) or (2) of section
206 or the other provisions of the federal securities laws.
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