May 27, 1992
TO: INVESTMENT ADVISERS COMMITTEE NO. 23-92
RE: SENATE BANKING COMMITTEE APPROVES INVESTMENT ADVISER BILL
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As we previously reported, the "Investment Adviser
Oversight Act of 1992" (S. 2266) had been introduced in the
Senate to impose annual fees on registered investment advisers,
require certain investment advisers to maintain fidelity bonds
and add an express suitability requirement under the Advisers
Act. (See Memorandum to Investment Advisers Members No. 8-92,
dated February 28, 1992). The Institute testified in support of
the legislation at a hearing held in February by the Senate
Banking Securities Subcommittee. (See Memorandum to Investment
Adviser Members No. 7-92, dated February 26, 1992).
We are pleased to inform you that last Thursday, the Senate
Banking Committee approved the legislation (S. 2266), but without
the proposed suitability requirement. The bill has not yet been
put on the calendar for consideration by the full Senate.
We will keep you informed of developments.
Amy B.R. Lancellotta
Associate Counsel