Page:United States Statutes at Large Volume 84 Part 2.djvu/100

 1430

54 Stat. 805, 846; Ante, p. 1415. 15 USC 80a-48. 52 Stat. 1075; 78 Stat. 570. 15 USC 780, Infra, 54 Stat. 844. 62 Stat. 928.

Ante, p. 1429.

54 Stat. 847; 74 Stat. 885.

"Person associated with an investment adviser."

Infra,

Registration requirements, exemptions.

74 Stat. 885.

PUBLIC LAW 91-547-DEC. 14, 1970

[84

STAT.

"(6) No finding by a court with respect to a breach of fiduciary duty under this subsection shall be made a basis (A) for a finding of a violation of this title for the purposes of sections 9 and 49 of this title, section 15 of the Securities Exchange Act of 1934, or section 203 of title II of this Act, or (B) for an injunction to prohibit any person from serving in any of the capacities enumerated m subsection (a) of this section." SEC. 21. The last sentence of section 43(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-42(a)) is amended by striking out '•sections 239 and 240 of the Judicial Code, as amended'' and inserting in lieu thereof "section 1254 of title 28, United States Code". SEC. 22. Section 44 of the Investment Company Act of 1940 (15 r. S. C. 80a-43) is amended— (1) by striking out the next to the last sentence and inserting in lieu thereof "Judgments and decrees so rendered shall be subject to review as provided in sections 1254, 1291, 1292, and 1294 of title 28, United States Code."; and (2) by adding at the end thereof a new sentence as follows: "The Commission may intervene as a party in any action or suit to enforce any liability or duty created by, or to enjoin any noncompliance with, section 36(b) of this title at any stage of such action or suit prior to final judgment therein." SEC. 23. Section 202(a) of the Investment Advisers Act of 1940 (15 TT.S.C. 80b-2(a)) is amended as follows. (1) Paragraph (2) is amended by striking out "under section 11(k) of the Federal Reserve Act, as amended" and inserting in lieu thereof "under the authority of the Comptroller of the Currency". (2) Paragraphs (17) through (20) are redesignated as paragraphs (18) through (21), respectively, and a new paragraph is inserted immediately after paragraph (16) to read as follows: "(17) The term 'person associated with an investment adviser' means any partner, oificer, or director of such investment adviser (or any person performing similar functions), or any person directly or indirectly controlling or controlled by such investment adviser, including any employee of such investment adviser, except that for the purposes of section 203 of this title (other than subsection (f) thereof), persons associated with an investment adviser whose functions are clerical or ministerial shall not be included in the meaning of such term. The Commission may by rules and regulations classify, for the purposes of any portion or portions of this title, persons, including employees controlled by an investment adviser." SEC. 24. (a) Section 203(b) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3(b)) is amended to read as follows: "(b) The provisions of subsection (a) shall not apply to— "(1) any investment adviser all of whose clients are residents of the State within which such investment adviser maintains his or its principal office and place of business, and who does not furnish advice or issue analyses or reports with respect to securities listed or admitted to unlisted trading privileges on any national securities exchange; "(2) any investment adviser whose only clients are insurance companies; or "(3) any investment adviser who during the course of the preceding twelve months has had fewer than fifteen clients and who neither holds himself out generally to the public as an investment adviser nor acts as an investment adviser to any investment company registered under title I of this Act." (b) Section 203(c) of such Act (15 U.S.C. _80b-3 (c)) is amended by striking out subparagraph (F) and inserting in lieu thereof the following:

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