March 12, 1992
TO: INVESTMENT ADVISERS COMMITTEE NO. 13-92
COLORADO INVESTMENT ADVISER ASSOCIATE MEMBERS
RE: AMENDED INVESTMENT ADVISER LEGISLATION IN COLORADO
__________________________________________________________
As we previously informed you, legislation had been
introduced in Colorado to require financial planners to register
with the Securities Commissioner. (See Memorandum to Investment
Advisers Committee No. 5-92 and Colorado Associate Investment
Adviser Members, dated January 31, 1992.) The House Committee on
Business Affairs and Labor amended that legislation and reported
the amended version to the Committee on Appropriations.
Instead of focusing on financial planners, the amended bill
requires all investment advisers, as defined in the bill, to
register with the Commissioner. Included in the definition of
"investment adviser" are "financial planners and other persons
who, as an integral component of other financially related
services, provide such investment advisory services to others for
compensation and as part of a business or who hold themselves out
as providing such investment advisory services to others for
compensation." The bill includes a number of exemptions from the
definition of "investment adviser" and from the registration
requirements, including any person who has complied in all
material respects with the disclosure requirements under the
Investment Advisers Act and has filed an annual notice of claim
of exemption from registration with the Commissioner.
The bill includes provisions relating to custody
requirements, agency cross transactions, disclosure requirements
and private rights of action.
If you have any comments on the attached amended
legislation, please call the undersigned at 202/955-3523. We
will keep you informed of developments.
Amy B.R. Lancellotta
Associate General Counsel
Attachment