June 25, 1991
TO: INVESTMENT ADVISERS COMMITTEE NO. 27-91
RE: PROPOSED COLORADO INVESTMENT ADVISERS ACT
__________________________________________________________
As we discussed at the last Investment Advisers Committee
meeting, the Colorado legislature is considering enacting
legislation to require registration of investment advisers.
Attached is a copy of the proposed Colorado Investment Advisers
Act which was prepared by the Colorado Securities Law Review
Committee of the Colorado Bar Association. The draft has been
included in material assembled by the Department of Regulatory
Agencies and distributed to members of the legislative committee
that will decide whether the General Assembly in its 1992 session
should consider enacting an investment adviser statute. A
hearing on that matter was scheduled for June 26, 1991.
The draft proposal contains an investment adviser
examination requirement. However, the Commissioner may exempt by
rule any designated classes of individuals from any written
examination requirement. Also, no examination would be required
of any individual who is a member in good standing of, is
certified by, or is otherwise associated with an organization
determined by rule of the Commissioner. Such organizations would
be nationally recognized, nonprofit and maintain standards to
ensure its members have a satisfactory level of knowledge about
federal and state securities laws applicable to investment
advisers.
Assuming the legislative committee leaves this matter on
the public agenda, please provide me with any comments you may
have on the draft proposal as soon as possible.
We will keep you informed of developments.
W. Richard Mason
Assistant Counsel
Attachment