May 28, 1991
TO: INVESTMENT ADVISERS COMMITTEE NO. 22-91
RE: REP. BOUCHER REINTRODUCES FINANCIAL PLANNER LEGISLATION
__________________________________________________________
On May 21, 1991, Representative Boucher (D-VA) reintroduced
legislation aimed at regulating financial planners. This
legislation, entitled the "Investment Advisors Disclosure and
Enforcement Act of 1991," is virtually identical to the proposed
legislation introduced last session by Rep. Boucher to regulate
financial planners, except that the penalties and enforcement
provisions have been deleted because they were enacted into law
as part of other legislation. A copy of the bill (H.R. 2412), a
section-by-section analysis and a press release are attached.
The proposed legislation requires all persons that hold
themselves out as offering financial planning services to
register with the SEC. The bill also includes new disclosure
requirements and a provision describing specific activities that
would be prohibited under the Investment Advisers Act (such as
misrepresenting a financial planner's qualifications). Finally,
the bill provides a private right of action against advisers for
violations of Sections 206(1) and (2) and paragraphs (5)(6) and
(7) of proposed Section 208(e) of the Advisers Act.
We will keep you informed of developments.
Amy B.R. Lancellotta
Assistant General Counsel
Attachments