January 30, 1991
TO: INVESTMENT ADVISER MEMBERS NO. 5-91
INVESTMENT ADVISER ASSOCIATE MEMBERS NO. 5-91
RE: PENNSYLVANIA ASSOCIATED PERSONS REQUIRED TO REGISTER
__________________________________________________________
Attached are interim guidelines for registration of
investment adviser "associated persons" in the Commonwealth of
Pennsylvania which were recently released by the Securities
Commission. Associated persons of investment advisers will be
required to file by February 19, 1991 Form U-4, a $50.00 filing
fee and evidence of passage of the examination requirements
previously applicable to associated persons.
Associated persons were recently defined by statute as any
partner, officer or director or other individual employed by or
associated with an investment adviser, except clerical or
administrative personnel, who (i) makes securities
recommendations or otherwise renders advice regarding securities
directly to advisory clients; (ii) manages accounts or portfolios
of clients; (iii) determines which recommendations or advise
regarding securities should be given (A) if that person is a
member of the advisers committee which determines general
investment advice to be given to clients or (B) if the adviser
has no such committee, the persons who determine general client
investment advice provided that, if there are more than 5 such
persons, only the supervisors of such persons are deemed to be
associated persons; or (iv) immediately supervises employees in
the performance of any of the foregoing.
With regard to examination requirements, the interim
guidelines require associated persons to pass the Series 65
Uniform Investment Adviser Law Examination and the Series 2, 7, 8
or 24 examination. However, the guidelines grandfather all
associated persons who were identified on Schedule D of Form ADV
between February 19, 1989 and February 19, 1991, did not have a
lapse in employment in excess of two years after February 19,
1991 and had met the examination and experience requirements
applicable to investment adviser associated persons in
Pennsylvania during such time.
The guidelines also contain recordkeeping requirements for
associated persons. In addition to name, educational and
employment histories, the investment adviser must maintain
records of securities-related disciplinary actions and records of
all felony and midemeanor convictions (other than minor traffic
offenses) of all associated persons.
A copy of Act 190, which enacted the registration
requirement, is also attached for your information. We will keep
you informed of further developments.
W. Richard Mason
Assistant General Counsel
Attachments