March 22, 1989
TO: INVESTMENT ADVISERS COMMITTEE NO. 15-89
RE: INSTITUTE DISMISSES LAWSUIT AGAINST OKLAHOMA
__________________________________________________________
As of February 24, 1989, the Institute officially dismissed
its lawsuit against the Oklahoma Securities Commission concerning
registration of agents and requirements that advisers
successfully pass an examination and submit an audited balance
sheet. A copy of the Order of Dismissal is attached.
In the early 1980's, the Institute and the Investment
Counsel Association of America, Inc. filed a lawsuit against the
Oklahoma Securities Commission and its administrator alleging
that they had no statutory authority to require, among other
things, the registration of an individual agent as an investment
adviser, that an investment adviser pass an examination as a
precondition of registration, or that an investment adviser,
which does not maintain custody of client funds or securities,
submit an audited balance sheet. Because of the enactment of
certain laws in Oklahoma and because the Oklahoma Securities
Commission no longer requires an adviser, which does not maintain
custody of client funds or securities, to submit an audited
balance sheet, the Institute and the ICAA agreed to dismiss the
suit.
Robert L. Bunnen, Jr.
Assistant General Counsel
Attachment