Sec. 203A. STATE AND FEDERAL RESPONSIBILITIES

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## SEC. 203A STATE AND FEDERAL RESPONSIBILITIES **[**80b–3a**]** ###

(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 203, 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 title; or #####

(B)is an adviser to an investment company registered under title I of this Act. ####

(2)Treatment of mid-sized investment advisers #####

(A)In general No investment adviser described in subparagraph

(B)shall register under section 203, unless the investment adviser is an adviser to an investment company registered under the Investment Company Act of 1940, or a company which has elected to be a business development company pursuant to section 54 of the Investment Company Act of 1940, and has not withdrawn the election, except that, if by effect of this paragraph an investment adviser would be required to register with 15 or more States, then the adviser may register under section 203. #####

(B)Covered persons An investment adviser described in this subparagraph is an investment adviser that— ######

(i)is required to be registered as an investment adviser with the securities commissioner (or any agency or office performing like functions) of the State in which it maintains its principal office and place of business and, if registered, would be subject to examination as an investment adviser by any such commissioner, agency, or office; and ######

(ii)has assets under management between— ######

(I)the amount specified under subparagraph

(A)of paragraph (1), as such amount may have been adjusted by the Commission pursuant to that subparagraph; and ######

(II)$100,000,000, or such higher amount as the Commission may, by rule, deem appropriate in accordance with the purposes of this title. ####

(3)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. ###

(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 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; #####

(B)that is not registered under section 203 because that person is excepted from the definition of an investment adviser under section 202(a)(11); or7 7The word “or” after the semicolon in paragraph (1)(B) probably should not appear. #####

(C)that is not registered under section 203 because that person is exempt from registration as provided in subsection (b)(7) of such section, or is a supervised person of such person; or #####

(D)that is not registered under section 203 because that person is exempt from registration as provided in subsection (b)(8) of such section, or is a supervised person of such person. ####

(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), 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. ###

(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.8 8Section 307 of the National Securities Markets Improvement Act of 1996 (P.L. 104–290; 110 Stat. 3438) provides as follows: SEC. 307. **[**[15 U.S.C. 80b–3a note](/us/usc/t15/s80b–3a)**]** CONTINUED STATE AUTHORITY.

(a)Preservation of Filing Requirements.—Nothing in 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, 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 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.

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110 Stat. 3438
15 USC 80b–3a

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Sec. 203A

STATE AND FEDERAL RESPONSIBILITIES

Stat.110 Stat. 3438

Cite15 USC 80b–3a

Cites 2Cited by 0 across 0 sources