July 2, 1990
TO: INVESTMENT ADVISER MEMBERS NO. 27-90
INVESTMENT ADVISER ASSOCIATE MEMBERS NO. 25-90
RE: SOUTH CAROLINA AMENDS UNIFORM SECURITIES ACT
__________________________________________________________
The South Carolina Uniform Securities Act was amended
effective July 1, 1990 to require registration of investment
adviser representatives and to revise the filing and bond fee
schedules. A copy of the amendments to the Act is attached.
The revised law defines "investment adviser representative"
as a partner, officer, director, individual occupying a similar
status or performing similar functions, or other individual
employed by or associated with an investment adviser, except
clerical personnel, who (a) makes any recommendations or
otherwise renders advice regarding securities directly to
clients, (b) manages accounts or portfolios of clients, (c)
determines which recommendations or advice regarding securities
must be given, (d) solicits, offers, or negotiates for the sale
of or sells investment advisory services, or (e) directly
supervises investment adviser representatives, unless the
investment adviser representatives are already required to
register due to their role as supervisors. Persons or entities
exempt from registration as investment advisers under South
Carolina law are exempt from registration as investment adviser
representatives.
An investment adviser representative must pay a non-
refundable $50.00 registration fee. The fee for investment
adviser registration has been increased to $200.00. Surety bonds
in the amount of $10,000.00 are required for investment adviser
representatives. The surety bond for investment advisers has
been increased to $50,000.00. No bond is required for persons
who are members of the NASD or the SIPC.
On a related matter, the South Carolina Securities
Commissioner recently accounced that until further notice the
passing of the Uniform Investment Adviser's Examination Series 7
and Series 63 or the passing of Series 65 will be considered
adequate for licensing as an investment adviser in South
Carolina.
We will keep you informed of further developments.
W. Richard Mason
Assistant General Counsel
Attachment