March 4, 1994
TO: INVESTMENT ADVISERS COMMITTEE NO. 19-94
RE: PROPOSED AMENDMENTS TO MARYLAND INVESTMENT ADVISER
REGULATIONS
__________________________________________________________
The Maryland Office of the Attorney General has issued for comment proposed
amendments to regulations governing the activities of investment advisers. A
copy of the proposed amendments is attached. The proposed amendments are
generally technical in nature and are intended to make the Maryland regulations
more consistent with the federal regulations. Some of the significant aspects
of the amendments are as follows:
(1) Regulation 02.02.05.02 (page 283) would apply the antifr
a u d
provis
i o n s
of the
Maryla
n d
Securi
t i e s
Act to
a
person
w h o
receiv
e s
indire
c t
consid
eratio
n for
invest
m e n t
adviso
r y
activi
ties;
(2) Regulation 02.02.05.10 (page 285) would require that a sample
c o p y
of the
invest
m e n t
adviso
r y
contra
c t
utiliz
ed by
t h e
advise
r be
filed
w i t h
t h e
advise
r ' s
applic
ation
f o r
regist
ration
; and
(3) Regulation 02.02.05.14 (page 286), which defines the financ
i a l
requir
ements
f o r
invest
m e n t
advise
r s
w i t h
custod
y of
client
funds,
assets
, or
securi
t i e s
o r
t h a t
requir
e
prepay
m e n t
o f
adviso
r y
fees,
would
b e
amende
d to
delete
a
provis
i o n
t h a t
permit
s
advise
rs to
satisf
y the
financ
i a l
requir
ements
b y
mainta
ining
minimu
m net
worth
o f
$35,00
0. As
a
result
o f
t h i s
change
,
advise
r s
would
h a v e
t o
mainta
i n
minimu
m net
capita
l of
$20,00
0 or
minimu
m
tangib
l e
assets
o f
$35,00
0.
Comments on the proposed regulations must be submitted by Tuesday March 22,
1994. If you have any comments, please provide them to me by Tuesday March 15,
1994. My direct dial number is 202/326-5825.
Tamara K. Cain
Assistant Counsel
Attachment