Securities License Exam Manual - Series 65
Investment Adviser Exclusions under State Law
1. Bank and Bank Holding Company, Savings Institution Trust Company 2. Lawyers Attorneys Teachers Engineers 3. Broker-dealer that receives NO compensation 4. Publishers -General and regular circulation (IA 40 Act) 5. Solely advice on government securities (USA) 6. Investment Adviser Reps 7. Federal Covered Investment Advisers (USA)
Investment Advisers - Exempt from registration
Federal Law Exemptions Intrastate (within one state) Only Clients Insurance Companies State Law Exemptions de minimus exemption - Limited to 5 or fewer clients, other than those above, residents in the state during the preceding 12 months. No place of business in the state, but registered in another state. Broker-dealers registered under the act Other Investment Advisers Institutional Investors - Banks, Employee Benefit Plans, etc. Existing Clients who are NOT residents but are temporarily in the state;
SEC Release IA-1092
Financial Planner - Comprehensive Financial Plan Pension Consultant - Advise employee benefit plan Sports and Entertainment Representative -
Investment Advisor
Gives Advices on Securities Part of Regular Business Receives Compensation
Retail Client
Individual - Need MORE protection than institutional ones
What is NOT a Person?
Minors Deceased Individuals Mentally Incompetent
Investment Counsel - Under Investment Advisers Act of 1940
Principal Business Giving Advice Provide Investment Supervisory Services
Blue Sky Laws
State laws to control the sale and issuance of new securities within a state
