January 24, 1991
TO: INVESTMENT ADVISERS COMMITTEE NO. 3-91
NEW MEXICO INVESTMENT ADVISER ASSOCIATE MEMBERS
NEW MEXICO INVESTMENT ADVISER MEMBERS
RE: NEW MEXICO REPROPOSES REGULATIONS
__________________________________________________________
As we discussed at the Investment Adviser Committee meeting
on January 23, 1991, attached are the reproposed regulations
regarding investment advisers in New Mexico. The regulations are
substantially the same as those proposed last fall. (See
Institute Memorandum to Investment Adviser Committee No. 31-90,
dated September 13, 1990.)
As you recall, the previously proposed regulations would
expand the scope of the definition of investment adviser to
include those who hold themselves out as providing investment
advise or refer to themselves as financial planners. The
reproposed regulation modifies this language by stating that it
is subject to the limitations contained in the definition of
"investment adviser" in the New Mexico statute. In addition, new
proposed regulation section 3.190 exempts from registration
registered representatives of a licensed broker-dealer provided
investment-related services are within the scope of the
registered representative’s license, all such services are
performed on behalf of the broker-dealer, and the broker-dealer
provides full disclosure regarding fee and compensation
arrangements on a disclosure form approved by the Securities
Division.
The reproposal contains no substantive changes with regard
to the adviser examination requirements contained in the earlier
proposal.
Comments on the reproposed regulations must be filed with
the Securities Division by February 15, 1991. Therefore, please
provide me with any comments you have on the reproposals by
February 11, 1991.
We will keep you informed of developments.
W. Richard Mason
Assistant General Counsel
Attachment