May 29, 1991
TO: INVESTMENT ADVISERS COMMITTEE NO. 23-91
RE: INSTITUTE COMMENTS ON TEXAS INSTITUTIONAL EXEMPTION PROPOSAL
__________________________________________________________
As we previously informed you, the Texas Securities Board
has proposed an exemption from investment adviser registration
for advisers whose clients are employee benefit plans. (See
Institute Memorandum to Investment Advisers Committee No. 21-91,
dated May 20, 1991.) Attached is a copy of the Institute's
comments regarding the proposal.
The Institute recommended that Texas adopt the pension plan
institutional exemption contained in the NASAA Amendments to the
Uniform Securities Act in lieu of the exemption contained in the
proposal. Alternatively, the Institute recommended that the
proposed exemption be clarified in three respects.
First, the Institute recommended that the exemption clarify
whether it applied to advisers to all employee benefit plans or
only to pension benefit plans subject to ERISA. Second, we
requested explanation of the scope of the term "self-directed
pension plan of a natural person." Finally, we recommended that
a salesman whose only clients are exempt institutional retirement
plans be exempt from registration regardless of whether the
adviser who employs the salesman is exempt from registration.
We will keep you informed of further developments.
W. Richard Mason
Assistant Counsel
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