Monday, April 02, 2012

Kansas Allows Continuation of De Minimis Exemption for Advisers

The de mimimis exemption under former Section 203(b)(3) of the Investment Advisers Act of 1940 may continue to be claimed by investment advisers transacting business in Kansas who were or would be exempt from SEC registration before July 11, 2011, thereby exempting them from Kansas licensing requirements, by administrative order of the Kansas Securities Commissioner, effective March 30, 2012. To qualify for the extended exemption, investment advisers must have had less than 15 clients during the preceding 12 months, will continue to have less than 15 clients, and neither held themselves out generally to the public as investment advisers nor acted or will act as investment advisers to any federally registered investment company under the Investment Company Act of 1940, or to a company that elected to be a business development company under Section 54 of the 1940 Act and that did not withdraw its election. Investment adviser representatives acting for exempt investment advisers would, themselves, be exempt from licensing requirements.

NOTE: This order supersedes Kansas Interpretive Order 2000-003 from November 4, 2008 and Kansas Special Order 12E001 from July 19 2011. This order will be vacated when permanent regulations are adopted.

No comments: