Investment advisers: state investment advisers; exemption; and investment advisers with principal offices and places of business in Colorado or Iowa; technical changes,
[Federal Register: January 13, 1999 (Volume 64, Number 8)]
[Rules and Regulations]
[Page 2120-2121]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13ja99-4]
SECURITIES AND EXCHANGE COMMISSION
[Release No. IA-1733A; File No. S7-28-97]
RIN 3235-AH22
Technical Changes to Schedule I to Form ADV
AGENCY: Securities and Exchange Commission.
ACTION: Final rule; technical changes to a form.
SUMMARY: The Commission is making technical changes to Schedule I to Form ADV, referenced in 17 CFR 279.1. Schedule I is the form on which investment advisers declare their eligibility for Commission registration. Schedule I to Form ADV was published Thursday, May 22, 1997 (62 FR 28112), under the Investment Advisers Act of 1940. Amendments to Schedule I to Form ADV were published Friday, July 24, 1998 (63 FR 39708), under the Advisers Act.
EFFECTIVE DATE: The rule amendments will become effective on January 7, 1999.
FOR FURTHER INFORMATION CONTACT: Arthur Laby, Special Counsel, at (202) 942-0716, Task Force on Investment Adviser Regulation, Division of Investment Management, Securities and Exchange Commission, 450 Fifth Street,
[[Page 2121]]
NW, Mail Stop 5-6, Washington, DC 20549.
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Supplementary Information
Under section 203A of the Investment Advisers Act of 1940 (``Advisers Act''), the Commission has regulatory responsibility for an investment adviser that has at least $25 million of assets under management or advises a registered investment company. The Commission also has responsibility for an adviser that has less than $25 million of assets under management, if its principal office and place of business is in a state that has not enacted investment adviser legislation.\1\ An adviser with its principal office in one of those states must indicate its eligibility for Commission registration on Schedule I of Form ADV.\2\
\1\15 U.S.C. 80b-3a.
\2\ 17 CFR 279.1. Under rule 203-1 (17 CFR 275.203-1), an adviser must file Schedule I to Form ADV with its initial application for Commission registration, and under rule 204-1 (17 CFR 275.204-1), an adviser must file Schedule I to Form ADV with annual amendments to Form ADV.
Colorado and Iowa recently passed investment adviser statutes, which became effective on January 1, 1999. An adviser that has its principal office and place of business in Colorado or Iowa, therefore, may not register with the Commission unless it has at least $25 million of assets under management, advises an investment company, or qualifies for an exemption under rule 203A-2.\3\ Last July, the Commission adopted certain amendments to Schedule I to Form ADV.\4\ The Commission today is making additional technical changes to Schedule I and the Instructions to Schedule I to reflect enactment of the Colorado and Iowa legislation.
\3\ 17 CFR 275.203A-2.
\4\ See Exemption for Investment Advisers Operating in Multiple States; Revisions to Rules Implementing Amendments to the Investment Advisers Act of 1940; Investment Advisers with Principal Offices and Places of Business in Colorado or Iowa, Investment Advisers Act Release No. 1733 (July 17, 1998) (63 FR 39708 (July 24, 1998)).
New advisers (i.e., those advisers that are not currently registered with the Commission) that have their principal place of business in Colorado or Iowa that are not eligible for Commission registration (e.g., because they do not have at least $25 million of assets under management) must now register with Colorado or Iowa.\5\ Advisers currently registered with the Commission solely because their principal office and place of business is located in Colorado or Iowa must withdraw from Commission registration no later than 180 days after the end of their fiscal year.\6\
\5\ In addition, advisers ineligible for Commission registration that have their principal office in Colorado or Iowa may be required to register in another state, if they have six or more clients that are residents of that state or have a place of business in that state. See Advisers Act section 222(d) (15 U.S.C. 80b-22(d)).
\6\ Under rule 204-1(a) (17 CFR 275.204-1), an adviser is required to file its annual amendment to Form ADV within 90 days of the end of its fiscal year. Under rule 203A-1(c) (17 CFR 275.203A- 1(c)), an adviser that is no longer eligible for Commission registration must withdraw from Commission registration within 90 days from the date the adviser was required to file its amended Form ADV. See also Schedule I to Form ADV, Instruction 6 (17 CFR 279.1).
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Certain Findings
Under the Administrative Procedure Act (``APA''), notice of proposed rulemaking is not required when the agency, for good cause, finds ``that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest.'' \7\ The Commission is making technical changes to Schedule I to Form ADV to accommodate new legislation in Colorado and Iowa. The Commission, therefore, finds that publishing the changes for comment is unnecessary.
\7\ 5 U.S.C. 553(b).
Publication of a substantive rule not less than 30 days before its effective date is required by the APA except as otherwise provided by the agency for good cause.\8\ For the same reasons described above with respect to notice and opportunity for comment, the Commission finds that there is good cause for making these technical changes effective on January 7, 1999.
\8\ 5 U.S.C. 553(d).
List of Subjects in 17 CFR Part 279
Reporting and recordkeeping requirements; Securities.
Accordingly, 17 CFR part 279 is amended as follows:
PART 279--FORMS PRESCRIBED UNDER THE INVESTMENT ADVISERS ACT OF 1940
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The authority citation for part 279 continues to read as follows:
Authority: The Investment Advisers Act of 1940, 15 U.S.C. 80b-1, et seq.
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By amending Schedule I to Form ADV (referenced in Sec. 279.1) to remove all references to ``Colorado'' and ``Iowa'' and by amending the Instructions to Schedule I to Form ADV (referenced in Sec. 279.1) to remove references to ``Colorado'' and ``Iowa'' and to remove the second paragraph under ``Instruction 3.''
Note: The text of Schedule I to Form ADV (Sec. 279.1) does not and the corrections will not appear in the Code of Federal Regulations.
Dated: January 7, 1999. Margaret H. McFarland, Deputy Secretary.
[FR Doc. 99-738Filed1-12-99; 8:45 am]
BILLING CODE 8010-01-U
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