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December 26, 1990
TO: INVESTMENT ADVISERS COMMITTEE NO. 47-90
RE: IDAHO RESPONDS TO INSTITUTE LEGISLATIVE RECOMMENDATIONS
__________________________________________________________
As we previously informed you, the Idaho Securities
Commission has been circulating proposed legislation regarding
the definition of investment adviser. (See Institute Memorandum
to Investment Advisers Committee No. 34-90, dated October 15,
1990.) The Institute recommended that the legislation repeal the
blanket exclusion from the definition for accountants and others
who provide securities advice to investors. Also, the Institute
recommended that persons whose only "advisory" activity is the
incidental solicitation of advisory business be excluded from the
definition of investment adviser representative.
The Securities Commission responded to the Institute by
explaining that the Idaho legislature has already decided that
accountants should not fall under the definition of investment
adviser and thus, the Commission could not introduce any
legislation to repeal the blanket exemption for such persons.
The Commission also stated that it will require investment
adviser representative registration by investment adviser
"solicitors" and does not intend to modify its proposal in this
regard.
We will discuss this matter at the next committee meeting
on January 23, 1991.
W. Richard Mason
Assistant General Counsel
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