Out Of State Regulations:
Delaware Securities Act §7313(c): (c) It is unlawful for any person to transact business in this State as an investment adviser or as an investment adviser representative unless: (1) The person is registered under this chapter; or (2) The person has no place of business in this State; and a. The person's only clients in this State are investment companies as defined in the Investment Company Act of 1940 [15 U.S.C. § 80a-1 et seq.], other investment advisers, federal covered advisers, broker-dealers, banks, trust companies, savings and loan associations, insurance companies, employee benefit plans with assets of not less than $1,000,000, and governmental agencies or instrumentalities, whether acting for themselves or as trustees with investment control, or other institutional investors as are designated by rule or order of the Commissioner; or b. During the preceding 12-month period has had not more than 5 clients, other than those specified in subparagraph a., who are residents of this State.
In State Regulations:
Maybe - exemption is possible for a hedge fund but not guaranteed, according to the examiner. Examiner suggested a no action request with as much detail as possible.
Comments on this regulation:
Exemption based on definition of investment adviser and definition of client; in this analysis, we would consider one fund = one "person." See Section § 7302(a)(8) for definition of investment adviser.
State Regulations Website:
Click to view
Delaware Securities Act §7313(c): (c) It is unlawful for any person to transact business in this State as an investment adviser or as an investment adviser representative unless: (1) The person is registered under this chapter; or (2) The person has no place of business in this State; and a. The person's only clients in this State are investment companies as defined in the Investment Company Act of 1940 [15 U.S.C. § 80a-1 et seq.], other investment advisers, federal covered advisers, broker-dealers, banks, trust companies, savings and loan associations, insurance companies, employee benefit plans with assets of not less than $1,000,000, and governmental agencies or instrumentalities, whether acting for themselves or as trustees with investment control, or other institutional investors as are designated by rule or order of the Commissioner; or b. During the preceding 12-month period has had not more than 5 clients, other than those specified in subparagraph a., who are residents of this State.
In State Regulations:
Maybe - exemption is possible for a hedge fund but not guaranteed, according to the examiner. Examiner suggested a no action request with as much detail as possible.
Comments on this regulation:
Exemption based on definition of investment adviser and definition of client; in this analysis, we would consider one fund = one "person." See Section § 7302(a)(8) for definition of investment adviser.
State Regulations Website:
Click to view
0 comments:
Post a Comment