September 30, 1991
TO: INVESTMENT ADVISER ASSOCIATE MEMBERS NO. 46-91
INVESTMENT ADVISER MEMBERS NO. 43-91
RE: DELAWARE AMENDS SECURITIES ACT
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Legislation was passed recently which amended the Delaware
Securities Act with respect to certain provisions relating to the
registration of investment advisers. Specifically, the
registration of investment advisers may be revoked for failure to
properly supervise their representatives; the registration of an
investment adviser representative is valid only while associated
with a registered investment adviser. Furthermore, the
Commissioner may deny the registration of a partner, officer,
director or controlling person in a firm, if the firm has had its
registration revoked for disciplinary reasons in Delaware.
Additionally, the Commissioner has been given the authority
to require, by rule or order, investment advisers to post surety
bonds in amounts of up to $100,000. Applications for registration
or withdrawal from registration become effective 90 days after
receipt of an application, or within a shorter period if the
Commissioner so determines.
The legislation became effective August 16, 1991. A copy
of the amendments is attached.
Susan S. Burgess
Legal Assistant
Attachment