June 24, 1991
TO: INVESTMENT ADVISERS COMMITTEE NO. 26-91
RE: IDAHO PROPOSES INVESTMENT ADVISER REPRESENTATIVE RULES
__________________________________________________________
As we previously informed you, the the Idaho Code was
recently amended to require registration of investment adviser
representatives. (See Institute Memorandum to Investment Adviser
Members No. 15-91 and Investment Adviser Associate Members No.
16-91, dated April 22, 1991.)
The Idaho Department of Finance recently released proposed
regulations regarding investment adviser representative
licensing. Revised Rule 4 requires the qualifying officer of an
investment adviser to pass the Uniform Investment Adviser Law
Examination ("Series 65") with a minimum grade of 85 percent.
Investment adviser representatives must pass the Series 65
examination. The Director may waive the examination requirement
for cause.
Revised Rule 11,9 d. requires every investment adviser to
establish, maintain and enforce written supervisory procedures.
The procedures would entail (i) the review and written approval
by the designated supervisor of the opening of each new customer
account, (ii) the frequent examination of all customer accounts,
(iii) the review and written approval of all securities
recommendations and the correspondence pertaining to solicitation
or execution of such recommendations, (iv) the review of
correspondence related in any way to recommendations and (v) the
prompt review and written approval of the handling of customer
complaints.
A copy of the proposed rules is attached. A hearing on the
rules is scheduled for August 15, 1991. Written comments will be
accepted until August 13, 1991. Therefore, please provide me
with any comments you have regarding the Idaho rule proposals by
August 1, 1991.
We will keep you informed of developments.
W. Richard Mason
Assistant Counsel
Attachment