June 23, 1993
TO: INVESTMENT ADVISERS COMMITTEE NO. 16-93
RHODE ISLAND INVESTMENT ADVISER ASSOCIATE MEMBERS
RE: INVESTMENT ADVISER LEGISLATION INTRODUCED IN RHODE ISLAND
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Legislation amending the definition of "investment adviser" and
"investment adviser representative" has been introduced in the Rhode Island
Legislature. House Bill 93-H6053 (copy attached) broadens the current uniform
definition of "investment adviser" to include a person who:
provides or offers to provide, directly or indirectly, financial
and investment counseling or advice on a group or individual
basis, or gathers information relating to investments, establishes
financial goals and objectives, processes and analyzes the
information gathered, and recommends a financial plan, or holds
himself or herself out as an investment adviser in any way,
including indicating by advertisement, card, or letterhead, or in
any other manner indicates that he or she is, a financial or
investment 'planner,' 'counselor,' 'consultant,' or any other
similar type of adviser or consultant.
The legislation would also revise the definition of "investment adviser
representative" to mean "any partner, officer, director of (or a person
occupying a similar status or performing similar functions) or other
individual employed by or associated with an investment adviser, except
clerical or ministerial personnel" who makes any recommendations or otherwise
renders advise regarding securities to clients."
It is our understanding that House Bill 93-H6053 has been referred to
the House Finance Committee for consideration. As of this date, a hearing on
the bill has not been scheduled. The Rhode Island Legislature is tentatively
scheduled to adjourn on July 9, 1993. We will keep you advised of
developments.
Thomas M. Selman
Assistant Counsel
Attachment