December 17, 1991
TO: INVESTMENT ADVISERS COMMITTEE NO. 62-91
MARYLAND ASSOCIATE INVESTMENT ADVISER MEMBERS
RE: DRAFT LEGISLATION TO ESTABLISH AN INVESTMENT ADVISER
GUARANTY FUND IN MARYLAND
__________________________________________________________
Attached is a copy of draft legislation to establish an
Investment Adviser Guaranty Fund in Maryland. This proposal
requires every registered investment adviser (or applicant ) in
Maryland to pay a fee not to exceed $150 and every registered
investment adviser representative (or applicant) to pay a fee not
to exceed $25 to be credited to the Fund. Under this proposal, a
person may recover compensation from the Fund for an actual loss
not in excess of $25,000 for each claim. A claim against the
Fund must be based on an act or omission that occurs in Maryland
by a registrant (1) in which money or property is obtained from a
person by theft, embezzlement, false pretenses, or forgery, or
(2) that constitutes fraud or misrepresentation.
It is our understanding that the Securities Commissioner
will be recommending that the proposal be modified before it is
formally introduced. If you have any comments or questions on
the proposal, please contact me at 202/955-3523. We recommend
that you do not call the General Assembly of Maryland or the
Securities Commission about the proposal until it is formally
introduced.
We will keep you informed of developments.
Amy B.R. Lancellotta
Associate General Counsel
Attachment