This text of Iowa § 502.403 (Investment adviser registration requirement and exemptions) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
1. Registration requirement. It is unlawful for a person to transact business in this state
as an investment adviser unless the person is registered under this chapter as an investment
adviser or is exempt from registration as an investment adviser under subsection 2.
2. Exemptions from registration. All of the following persons are exempt from the
registration requirement of subsection 1:
a. A person without a place of business in this state that is registered under the securities
Act of the state in which the person has its principal place of business if its only clients in this
state are any of the following:
(1)Federal covered investment advisers, investment advisers registered under this
chapter, or broker-dealers registered under this chapter.
(2)Institutional investors.
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1. Registration requirement. It is unlawful for a person to transact business in this state
as an investment adviser unless the person is registered under this chapter as an investment
adviser or is exempt from registration as an investment adviser under subsection 2.
2. Exemptions from registration. All of the following persons are exempt from the
registration requirement of subsection 1:
a. A person without a place of business in this state that is registered under the securities
Act of the state in which the person has its principal place of business if its only clients in this
state are any of the following:
(1) Federal covered investment advisers, investment advisers registered under this
chapter, or broker-dealers registered under this chapter.
(2) Institutional investors.
(3) Bona fide preexisting clients whose principal places of residence are not in this state
if the investment adviser is registered under the securities Act of the state in which the clients
maintain principal places of residence.
(4) Any other client exempted by rule adopted or order issued under this chapter.
b. A person without a place of business in this state if the person has had, during the
preceding twelve months, not more than five clients that are resident in this state in addition
to those specified under paragraph “a”.
c. Any other person exempted by rule adopted or order issued under this chapter.
3. Limits on employment or association. It is unlawful for an investment adviser,
directly or indirectly, to employ or associate with an individual to engage in an activity
related to investment advice in this state if the registration of the individual is suspended
or revoked or the individual is barred from employment or association with an investment
adviser, federal covered investment adviser, or broker-dealer by an order under this chapter,
the securities and exchange commission, or a self-regulatory organization, unless the
investment adviser did not know, and in the exercise of reasonable care could not have
known, of the suspension, revocation, or bar. Upon request from the investment adviser and
for good cause, the administrator, by order, may waive, in whole or in part, the application
of the prohibitions of this subsection to the investment adviser.
4. Investment adviser representative registration required. It is unlawful for an
investment adviser to employ or associate with an individual required to be registered under
§502.403, UNIFORM SECURITIES ACT (BLUE SKY LAW) 34
this chapter as an investment adviser representative who transacts business in this state on
behalf of the investment adviser unless the individual is registered under section 502.404,
subsection 1, or is exempt from registration under section 502.404, subsection 2.