September 5, 1991
TO: INVESTMENT ADVISERS COMMITTEE NO. 40-91
OREGON INVESTMENT ADVISER MEMBERS
OREGON INVESTMENT ADVISER ASSOCIATE MEMBERS
RE: OREGON PROPOSES REVISED ADVISER REGISTRATION RULES
__________________________________________________________
The Oregon Division of Finance and Corporate Securities
recently proposed the attached revisions to its investment
adviser regulations.
The proposal contains several liberalizations of the current
rules. An exemption from the definition of investment adviser or
salesperson is proposed for "any person who conducts no public
advertising or general solicitation in this state and whose only
clients in this state are "accredited investors" as that term is
defined under the Securities Act of 1933." An exemption from the
$10,000 surety bond requirement is provided for advisers who file
a letter of credit in the sum of $10,000.
With regard to examination requirements, passage of the
Series 65 is now permitted as an alternative to the Series 63.
Passage of the Series 2, 6 or 7 is still required. Waivers of
the examination requirements will be considered if the applicant
has a minimum of three continuous years of securities related
activity and a pre-existing business relationship with a person
who is now in Oregon. The former examination grandfather
provision which applied to advisers who were licensed on
September 27, 1987 has been proposed as a permanent exemption for
advisers who have been licensed in Oregon in the same capacity
during the two years immediately prior to the filing of an
application in Oregon.
The proposal contains strict new disqualification provisions
to any applicant who has been convicted of or pleaded nolo
contendere to any felony. Disqualification also applies to those
who have been convicted of or pleaded nolo contendere to any
misdemeanor involving investments or an investment-related
business, fraud, false statements or omissions, wrongful taking
or property or bribery, counterfeiting, extortion or gambling.
Hearings on the proposals are scheduled for September 11,
1991 in Salem, Oregon. However, written comments on the
proposals will be considered until September 20, 1991.
Therefore, please call me at 202/955-3516 by September 13, 1991
with regard to any comments you may have on the proposed
regulations.
We will keep you informed of developments.
W. Richard Mason
Assistant Counsel - Pension
Attachment