Page:United States Statutes at Large Volume 110 Part 5.djvu/365

 PUBLIC LAW 104-290—OCT. 11, 1996 110 STAT. 3439 "(c) LIMITATION ON CAPITAL AND BOND REQUIREMENTS.— NO State may enforce any law or regulation that would require an investment adviser to maintain a higher minimum net capital or to post any bond in addition to any that is required under the laws of the State in which it maintains its principal place of business, if the investment adviser— "(1) is registered or licensed as such in the State in which it maintains its principal place of business; and "(2) is in compliance with the applicable net capital or bonding requirements of the State in which it maintains its principal place of business. "(d) NATIONAL DE MINIMIS STANDARD. — NO law of any State or political subdivision thereof requiring the registration, licensing, or qualification as an investment adviser shall require an investment adviser to register with the securities commissioner of the State (or any agency or officer performing like functions) or to comply with such law (other than any provision thereof prohibiting fraudulent conduct) if the investment adviser— "(1) does not have a place of business located within the State; and "(2) during the preceding 12-month period, has had fewer than 6 clients who are residents of that State.". SEC. 305. DISQUALIFICATION OF CONVICTED FELONS. (a) AMENDMENT. —Section 203(e) of the Investment Advisers Act of 1940 (15 U.S.C. 80b -3(e)) is amended— (1) by redesignating paragraphs (3) through (7) as psiragraphs (4) through (8), respectively; and (2) by inserting after paragraph (2) the following new paragraph: (3) has been convicted during the 10-year period preceding the date of filing of any application for registration, or at any time thereafter, of— "(A) any crime that is pvinishable by imprisonment for 1 or more years, and that is not described in paragraph (2); or "(B) a substantially equivalent crime by a foreign court of competent jurisdiction.". (b) CONFORMING AMENDMENTS.— Section 203 of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3) is amended— (1) in subsection (e)(6) (as redesignated by subsection (a) of this section), by striking "this paragraph (5)" and inserting "this paragraph"; (2) in subsection (f)— (A) by striking "paragraph (1), (4), (5), or (7) of subsection (e) of this section" and inserting "paragraph (1), (5), (6), or (8) of subsection (e)"; (B) by striking "paragraph (3)" and inserting "paragraph (4)"; and (C) by striking "said subsection" each place that term appears and inserting "subsection"; and (3) in subsection (i)(l)(D), by striking "section 203(e)(5) of this title" and inserting "subsection (e)(6)". SEC. 306. INVESTOR ACCESS TO INFORMATION. 15 USC 80b-10 The Commission shall— "°*^ - (1) provide for the establishment and maintenance of a readily accessible telephonic or other electronic process to

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