Assignment details –
According to the Study of Investment Advisors and Broker-Dealers from January 2011, there were just shy of 12,000 firms registered with the Securities and Exchange Commission (the “SEC”) at the end of 2010. By contrast, there were over 15,000 state-registered advisory firms. Those figures are changing dramatically as many investment advisors are transitioning from federal (SEC) to state registration as a result of Section 410 of the Dodd-Frank Act, which raised the assets under management threshold from $25 million to $100 million for federally registered advisers.
To facilitate the transition and aid the registration process for state-based advisers, the North American Securities Administrators Association (“NASAA”) provides summaries of the state investment adviser registration process on its website: NASAA State Investment Adviser Registration. The website also provides links to each state’s securities administrator.
You are the senior legislative aide to state Senator Swanson from the state of Setonia. Senator Swanson wants to propose legislation defining the registration requirements for investment advisers in Setonia.
- She has asked you to prepare a memorandum summarizing the scope of pertinent regulations for investment advisers in New York and Texas.
- The Senator also wants you to highlight any key differences between the statutes and regulations in both states.
- Please include your recommendation as to which of the two statutes should serve as the model for the Setonia Act.
- Focus on the most salient substantive provisions of the statutes and regulations addressing what triggers the requirement of registration, rather than any procedural provisions concerning fees or other administrative issues.
- You should rely upon:
- the NASAA summaries,
- the state statutes and
- Independent Internet research.
- Your memo should be between 1500 and 1700 words.
- Please be certain to cite all reference sources fully.
