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April 5, 1991
TO: INVESTMENT ADVISERS COMMITTEE NO. 13-91
FLORIDA INVESTMENT ADVISER MEMBERS
FLORIDA INVESTMENT ADVISER ASSOCIATE MEMBERS
RE: FLORIDA PROPOSES REVISING DEFINITION OF "BRANCH OFFICE"
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The Florida Securities Division has proposed amendments to
its Administrative Rules regarding investment advisers. The
proposals would amend the term "branch office" to include (1) any
location which is owned or controlled by an investment adviser
for purposes of rendering investment advise and in which two or
more associated persons are engaged in such activities or (2) a
location which holds itself out to the general public for the
purpose of rendering investment advise on behalf of an investment
adviser. A branch office or associated person would be
prohibited from conducting advisory business by any name other
than that of the investment adviser with which the branch office
or person is registered unless the office or person meets a
number of conditions set forth in the regulation, including
disclosure of the relationship between the investment adviser and
the entity under which business is conducted at the location.
Investment advisers would also be required to maintain a list of
all locations from which any associated person renders investment
advise through such investment adviser in the State of Florida.
The regulation was proposed because the Florida Securities
Division identified several problems inherent to arrangements
whereby associated persons operate independently of registered
investment advisers. Specifically, the Division is interested in
regulating "independent contractors" or "franchise" arrangements.
Written comments may be submitted to the Securities
Division by April 30, 1991. Therefore, please provide me with
any comments you have on this proposal by April 24, 1991.
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We will keep you informed of developments.
W. Richard Mason
Assistant Counsel
Attachment