November 28, 1990
TO: INVESTMENT ADVISER MEMBERS NO. 55-90
INVESTMENT ADVISER ASSOCIATE MEMBERS NO. 51-90
RE: RHODE ISLAND ISSUES FINAL INVESTMENT ADVISER REGULATIONS
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The Rhode Island Division of Securities has issued final
regulations regarding the registration of investment advisers and
investment adviser representatives which will become effective on
December 6, 1990. A copy of the final regulations is attached.
The regulations set forth the exemptions from the
definition of investment adviser representatives, as well as
defining unethical or dishonest practices, the reporting and
record keeping requirements and the custody conditions for
investment advisers.
Regulation R.215b-1 outlines a bond requirement for
advisers who are not registered with the SEC. The amount of the
bond will be set by order of the director, with a minimum amount
of $100,000 and a maximum amount of $1,000,000. Investment
adviser representatives associated with the adviser must file a
bond in an amount to be set by order of the director of at least
$10,000 but no greater than $100,000.
Certain of the proposed regulations were not included in
the final regulations and will be reproposed at a later date.
Such regulations include those relating to the examination
requirement, post-licensing filing requirements and certain
unethical or dishonest business practices.
* * *
We will keep you advised of developments.
Patricia Louie
Assistant General Counsel
Attachment