§ 502.404 — Investment adviser representative registration requirement and exemptions

Iowa § 502.404

• Jurisdiction: Iowa
• Title XII: BUSINESS ENTITIES
• Ch. 502: UNIFORM SECURITIES ACT (BLUE SKY LAW)

Text

1. Registration requirement. It is unlawful for an individual to transact business in
this state as an investment adviser representative unless the individual is registered under
this chapter as an investment adviser representative or is exempt from registration as an
investment adviser representative under subsection 2.
2. Exemptions from registration. All of the following individuals are exempt from the
registration requirement of subsection 1:
a. An individual who is employed by or associated with an investment adviser that is
exemptfromregistrationundersection502.403,subsection2,orafederalcoveredinvestment
adviser that is excluded from the notice filing requirements of section 502.405.
b. Any other individual exempted by rule adopted or order issued under this chapter.
3. Registration effective only while employed or associated. The registration of an
investment adviser representative is not effective while the investment adviser representative
is not employed by or associated with an investment adviser registered under this chapter
or a federal covered investment adviser that has made or is required to make a notice filing
under section 502.405.
4. Limit on affiliations. An individual may transact business as an investment adviser
representative for more than one investment adviser or federal covered investment adviser
unless a rule adopted or order issued under this chapter prohibits or limits an individual
from acting as an investment adviser representative for more than one investment adviser or
federal covered investment adviser.
5. Limits on employment or association. It is unlawful for an individual acting as an
investment adviser representative, directly or indirectly, to conduct business in this state on
behalf of an investment adviser or a federal covered investment adviser if the registration
of the individual as an investment adviser representative is suspended or revoked or the
individual is barred from employment or association with an investment adviser or a federal
covered investment adviser by an order under this chapter, the securities and exchange
commission, or a self-regulatory organization. Upon request from a federal covered
investment adviser and for good cause, the administrator, by order issued, may waive, in
whole or in part, the application of the requirements of this subsection to the investment
adviser representative.
6. Referral fees. An investment adviser registered under this chapter, a federal covered
investment adviser that has filed a notice under section 502.405, or a broker-dealer
registered under this chapter is not required to employ or associate with an individual as
an investment adviser representative if the only compensation paid to the individual for a
referral of investment advisory clients is paid to an investment adviser registered under this
chapter, a federal covered investment adviser who has filed a notice under section 502.405,
or a broker-dealer registered under this chapter with whom the individual is employed or
associated as an investment adviser representative.

Legislative History

[C77, 79, 81, §502.404]