Monday, August 29, 2011

Massachusetts Adds Performance-Based Fees and Investment Consulting Services to IA Unethical Practices and Increases BD/Agent Fees

Performance-based fee and investment consulting service provisions were added to the list of unethical practices for investment advisers; registration fees for broker-dealers and agents were increased, along with the name "FINRA" replacing NASD as the current name of the organization that regulates broker-dealers and agents; and, similarly, the nomenclature for stock exchanges was updated to reflect the exchanges' current names, as rule changes adopted by the Massachusetts Securities Division. The initial and renewal registration fee for broker-dealers was increased to $450, from $300. The initial, renewal and transfer registration fee for agents was increased to $75, from $50.

NOTE: The previously proposed exemption for exempt reporting advisers, and both the amended "institutional buyer" definition and minimum financial requirements for investment advisers remain proposed.