January 28, 1993
TO: BOARD OF GOVERNORS NO. 6-93
SEC RULES MEMBERS NO. 13-93
INVESTMENT ADVISER MEMBERS NO. 9-93
INVESTMENT ADVISER ASSOCIATE MEMBERS NO. 4-93
RE: INTRODUCTION OF INVESTMENT ADVISERS BILL
__________________________________________________________
Congressman Boucher, a member of the House Subcommittee on
Telecommunications and Finance, recently introduced legislation
in the House of Representatives to authorize the payment of
annual fees by investment advisers and to provide for expanded
supervision and regulation of investment advisers. Congressman
Markey, Chairman of the Subcommittee, and Congressman Dingell,
Chairman of the full House Energy and Commerce Committee, were
among the co-sponsors of the legislation.
The legislation is similar to the bill that passed the
House last year. The key provisions of the bill would: (1)
authorize the SEC to impose an annual fee on investment advisers;
(2) require the SEC to establish a schedule for adviser
inspections; (3) impose an express suitability requirement under
the Investment Advisers Act; (4) require registered advisers to
provide prescribed brochure disclosure and issue transaction and
periodic reports to clients; and (5) authorize the SEC to require
investment advisers with custody of client funds or securities or
discretionary authority over client assets to obtain fidelity
bonds. Copies of the bill and floor statements are attached.
We understand that there will be two hearings on the bill
in the near future. We will keep you informed of further
developments.
Matthew P. Fink
President
Attachments