§ 23-19-4-3 — Investment adviser registration; exemptions; restrictions on employment or association

Indiana § 23-19-4-3

• Jurisdiction: Indiana
• Title 23: BUSINESS AND OTHER ASSOCIATIONS
• Art. 19: INDIANA UNIFORM SECURITIES ACT
• Ch. 4: Broker-Dealers, Agents, Investment Advisers,

Text

(a) It is unlawful for a person to transact
business in this state as an investment adviser unless the person is
registered under this article as an investment adviser or is exempt from
registration as an investment adviser under subsection (b).
(b) The following persons are exempt from the registration
requirement of subsection (a):
(1) 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:
(A) federal covered investment advisers, investment advisers
registered under this article, or broker-dealers registered under
this article;
(B) institutional investors;
(C) 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; or
(D) any other client exempted by rule adopted or order issued
under this article.
(2) A person without a place of business in this state if the person
has had, during the preceding twelve (12) months, not more than
five (5) clients that are resident in this state in addition to those
specified under subdivision (1).
(3) Any other person exempted by rule adopted or order issued
under this article.
(c) 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 article, 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
commissioner, by order, may waive, in whole or in part, the application
of the prohibitions of this subsection to the investment adviser.
(d) It is unlawful for an investment adviser to employ or associate
with an individual required to be registered under this article as an
investment adviser representative who transacts business in this state
on behalf of the investment adviser unless the individual is registered
under section 4(a) of this chapter or is exempt from registration under
section 4(b) of this chapter.

Legislative History

As added by P.L.27-2007, SEC.23.