Rule 20:08:05:15(2) exempting investment advisers from South Dakota registration requirements if the advisers meet the exemption requirements of Sections 203(b) AND 203(l) of the Investment Advisers Act of 1940 should be read as "investment advisers meeting the exemption requirements of Sections 203(b) OR 203(l) of the Investment Advisers Act of 1940 are exempt from the South Dakota registration requirements." Following an email in July, 2011 from Alan Parness, Chair of the State Regulation of Securities section of the ABA to Michael Youngberg, Director of the South Dakota Division of Securities, showing how the above "AND" would nullify the exemption, Mr. Youngberg said that the rule would be officially amended to replace the "and" with "or" at about the time a new rule exempting private fund advisers is proposed.
With any questions, please contact Michael Youngberg at (605) 773-5603 or by emailing him at michael.youngberg@state.sd.us.