January 31, 1992
TO: INVESTMENT ADVISERS COMMITTEE NO. 5-92
COLORADO ASSOCIATE INVESTMENT ADVISER MEMBERS
RE: FINANCIAL PLANNER LEGISLATION INTRODUCED IN COLORADO
__________________________________________________________
Legislation has been introduced in Colorado concerning
financial planners. The legislation requires, among other
things, registration of financial planners with the securities
commissioner. The term "financial planner" is defined as any
person who, for compensation, (1) advises others as to the value
of securities or as to the advisability of investing, purchasing,
or selling securities, (2) provides or offers to provide
financial and investment counseling or advice on a group or
individual basis, or (3) gathers information relating to
investments, processes and analyzes such information and, based
thereon, establishes financial goals and objectives and
recommends financial plans. In addition, any person who holds
himself or herself out as an investment adviser or financial
planner in any way is subject to the registration requirement.
Financial planner representatives, defined as employees or
associates of a financial planner who provide financial planning
services on behalf of the planner, also are required to be
registered.
Registered investment advisers are exempt from the
legislation so long as they do not (1) take possession of
customer funds or securities, (2) receive compensation, either
directly or indirectly, from the purchase or sale of securities,
and (3) offer or sell securities to any person to whom they
provide financial planning services. These advisers are required
to file with the securities commissioner copies of all documents
required to be filed with the SEC.
No hearings have been scheduled yet on this proposal. A
copy of the legislation is attached. If you have any comments on
the legislation, please call me at 202/955-3523.
We will keep you informed of developments.
Amy B.R. Lancellotta
Associate General Counsel
Attachment