In accordance with Governor Lamont's emergency declaration, employees and the public are asked to observe social distancing measures to ensure communal safety and to slow the spread of the novel coronavirus (COVID-19). People are asked to work from home and telecommute wherever possible. Adhering to these instructions, the Department of Banking has closed its offices to the public. However, agency staff will continue to provide services to consumers and industry through telework. When contacting the Department, please use electronic communication whenever possible. Agency staff will continue to check voicemails during this time. Consumers are encouraged to use our online form for complaints. If you are unsure where to send an inquiry, you may send it to Department.Banking@ct.gov and it will be routed appropriately. Thank you for your patience during this time.

ORDER GOVERNING REGISTRATION FILINGS
THROUGH THE INVESTMENT ADVISER REGISTRATION DEPOSITORY FOR INVESTMENT ADVISER AGENTS AND INVESTMENT ADVISORY FIRMS


WHEREAS
the Commissioner of Banking (the "Commissioner") is charged with the administration of Chapter 672a of the Connecticut General Statutes, the Connecticut Uniform Securities Act, as amended by P.A. 01-48 (the "Act"), and Sections 36b-31-2 et seq. of the Regulations of Connecticut State Agencies (the "Regulations") promulgated under the Act;

WHEREAS Section 36b-6(c) of the Act states, in part, that: "No person shall transact business as an investment adviser, within or from this state, unless registered as such by the commissioner as provided in sections 36b-2 to 36b-33, inclusive, or exempted pursuant to subsection (e) of this section. No individual shall transact business as an investment adviser agent, within or from this state, unless he is registered as an investment adviser agent of the investment adviser for whom he acts in transacting such business";

WHEREAS Section 36b-6(e) of the Act provides, in part, that:

The following investment advisers are exempted from the registration requirements under subsection (c) of this section: Any investment adviser that (1) is registered or required to be registered under Section 203 of the [federal] Investment Advisers Act of 1940; (2) is excepted from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940; or (3) has no place of business in this state and, during the preceding twelve months, has had no more than five clients who are residents of this state. Any investment adviser claiming an exemption pursuant to subdivision (1) or (2) of this subsection that is not otherwise excluded under subsection (10) of section 36b-3, shall first file with the commissioner a notice of exemption together with a consent to service of process as required by subsection (g) of section 36b-33. The notice of exemption shall contain such information as the commissioner may require and shall be accompanied by a nonrefundable fee of two hundred fifty dollars. Such notice of exemption shall be valid until December thirty-first of the calendar year in which it was first filed and may be renewed annually thereafter upon submission of such information as the commissioner may require together with a nonrefundable fee of one hundred fifty dollars;

WHEREAS Section 36b-32(a) of the Act provides that: "A document is filed when it is received by the commissioner or any other person designated in writing by the commissioner"; WHEREAS on September 12, 2000, the Securities and Exchange Commission (the "SEC") issued Release No. IA-1897 (Electronic Filing by Investment Advisers; Amendments to Form ADV; File No. S7-10-00) which, effective October 10, 2000 and among other things, mandated that SEC-registered investment advisers file Part 1 of Form ADV electronically with the SEC through the Investment Adviser Registration Depository (the "IARD") commencing January 1, 2001;

WHEREAS the IARD is an Internet-based filing depository operated by NASD Regulation, Inc. ("NASDR") under contracts with the SEC and the North American Securities Administrators Association ("NASAA"), which depository is designed to accept filings made electronically by SEC-and state registered investment advisers as well as their investment adviser agents; collect associated regulatory filing fees on behalf of affected jurisdictions; and provide the investing public with Internet-based access to background information on state and federally regulated investment advisory personnel;

WHEREAS on September 29, 2000, the Commissioner issued an Order Adopting Revisions to Part 1 of Form ADV and Governing Transition Filings Through the Investment Adviser Registration Depository by Investment Advisory Firms (the "September 29, 2000 Order"). The September 29, 2000 Order directed that, effective January 1, 2001, and for purposes of Section 36b-6(e) of the Act, investment advisers registered or applying for registration with the SEC make their Connecticut notice filings, including amendments thereto and related payments, through the IARD and make Part II of Form ADV available to the Commissioner upon the Commissioner's request;

WHEREAS the September 29, 2000 Order also stated that, for purposes of Sections 36b-7, 36b-12(a), 36b-12(b), 36b-12(d), 36b-13(a), 36b-13(b), 36b-31(c) and 36b-32(a) of the Act, the IARD was designated to receive documents and application filings as well as to collect initial and renewal filing fees on the Commissioner's behalf with respect to investment advisers and investment adviser agents;

WHEREAS Section 36b-7 of the Act provides, in part, that: "A[n] ... investment adviser or investment adviser agent may obtain an initial or renewal registration by filing with the commissioner or other depository as the commissioner may by regulation or order designate an application together with a consent to service of process pursuant to subsection (g) of section 36b-33. The application shall contain such information as the commissioner may require";

WHEREAS Section 36b-12(a) of the Act provides, in part, that: "Each person applying for registration as ... [an] investment adviser shall pay to the commissioner or to any person designated by the commissioner in writing to collect such fee on his behalf a fee of two hundred fifty dollars which shall not be refunded";

WHEREAS Section 36b-12(b) of the Act states, in part, that: "Each person applying for registration as an ... investment adviser agent shall pay to the commissioner or to any person designated by the commissioner to collect such fee on his behalf a fee of fifty dollars which shall not be refunded";

WHEREAS Section 36b-13(a) of the Act states, in part, that: Each person registered as ... [an] investment adviser may renew such registration for a one-year period not later than December thirty-first of each calendar year by making application in such manner as prescribed by the commissioner. The fee for renewal of registration for each ... investment adviser shall be one hundred fifty dollars per renewal application, nonrefundable, payable at the time of renewal, and shall be submitted, together with the renewal application, to the commissioner or any person designated in writing by the commissioner to collect such fee on his behalf";

WHEREAS Section 36b-13(b) of the Act adds that: "Each person registered as an ... investment adviser agent may renew such registration for a one-year period by December thirty-first of each calendar year by making application in such manner as prescribed by the commissioner. The fee for renewal of registration for each person registered as an ... investment adviser agent shall be fifty dollars, nonrefundable, payable at the time of renewal, and shall be submitted, together with the renewal application, to the commissioner or any person designated in writing by the commissioner to collect such fee on his behalf";

WHEREAS Section 36b-31-14e(a) of the Regulations provides, in part, that: "If the information contained in any application for registration as ... [an] … investment adviser or investment adviser agent, or in any amendment thereto, is or becomes inaccurate or incomplete in any material respect for any reason, the applicant or registrant shall promptly file a correcting amendment with the commissioner";

WHEREAS the September 29, 2000 Order also stated that the Commissioner may re-evaluate the expanded use of the IARD to cover investment adviser agent and investment adviser registration filings and fees in light of future system enhancements allowing for the capture of additional information; the public interest in having information on both state and federally-regulated investment advisers available for public viewing through a centralized database; and the effectiveness of the IARD during its pilot phases;

WHEREAS in March 2002, the IARD system became capable of accepting investment adviser agent filings made electronically by SEC-and state registered investment advisers and collecting associated regulatory filing fees on behalf of affected jurisdictions;

WHEREAS Section 36b-31(a) of the Act states, in part, that: "The commissioner may from time to time make, amend and rescind such ... orders as are necessary to carry out the provisions of ... [the Act], including ... orders governing ... applications … For the purpose of ... orders, the commissioner may classify securities, persons and matters within his jurisdiction, and prescribe different requirements for different classes";

WHEREAS Section 36b-31(b) of the Act provides that: "No ... order may be made, amended or rescinded unless the commissioner finds that the action is necessary or appropriate in the public interest or for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of ... [the Act];

WHEREAS Section 36b-31(c) of the Act adds that: "To encourage uniform interpretation and administration of ... [the Act] and effective securities regulation and enforcement, the commissioner may cooperate with the securities agencies or administrators of other states ... [and] the Securities and Exchange Commission ...The cooperation authorized by this subsection includes, but is not limited to, the following actions: (1) Establishing central depositories for the registration of ... securities industry personnel under ... [the Act], and for documents or records required or allowed to be filed with or maintained by the commissioner under ... [the Act]";

WHEREAS the Commissioner finds that the issuance of this Order is necessary and appropriate in the public interest and for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of the Act;

NOW THEREFORE THE COMMISSIONER ORDERS AS FOLLOWS:

1. Effective April 1, 2003, and for purposes of Sections 36b-7, 36b-12(a), 36b-12(b), 36b-13(a) and 36b-13(b) of the Act and Section 36b-31-14e(a) of the Regulations, investment adviser agents and investment advisers required to be registered under Section 36b-6(c) of the Act shall make their Connecticut registration filings, including renewals, amendments and associated regulatory filing fees, through the IARD;
2. Nothing in this Order shall relieve any IARD-filing investment adviser agent or investment advisory firm required to be registered under Section 36b-6(c) of the Act from its obligation to file supplemental information directly with the Commissioner upon the Commissioner's request in such form and manner as the Commissioner may determine; and
3. This Order shall remain in effect until modified, superseded or vacated by the Commissioner or other lawful authority.
So ordered at Hartford, Connecticut
this 16th day of January 2003.
John P. Burke
Banking Commissioner

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