August 27, 1991
TO: INVESTMENT ADVISER MEMBERS NO. 36-91
INVESTMENT ADVISER ASSOCIATE MEMBERS NO. 35-91
RE: NORTH CAROLINA ENACTS NEW ENFORCEMENT PROVISIONS
__________________________________________________________
Attached is a copy of legislation which was recently
enacted in North Carolina effective October 1, 1991. The new
legislation provides for a prohibition on the use of unlawful
telephone rooms; a prohibition on the manipulation of any
security; the appointment by the administrator of enforcement
agents; restitution and civil penalties up to $25,000 for
violations; and a standard of "reasonable care" in place of the
existing "reckless disregard" standard for untruths or omissions
regarding material facts.
We will keep you informed of related developments.
W. Richard Mason
Assistant Counsel - Pension
Attachment