Kansas Statutes 17-12a,404. Investment adviser representative registration requirement and exemptions
(a) Registration requirement. It is unlawful for an individual to transact business in this state as an investment adviser representative unless the individual is registered under this act as an investment adviser representative or is exempt from registration as an investment adviser representative under subsection (b).
(b) Exemptions from registration. The following individuals are exempt from the registration requirement of subsection (a):
Terms Used In Kansas Statutes 17-12a,404
- Administrator: means the securities commissioner of Kansas, appointed as provided in Kan. See Kansas Statutes 17-12a,102
- Broker-dealer: means a person engaged in the business of effecting transactions in securities for the account of others or for the person's own account. See Kansas Statutes 17-12a,102
- Federal covered investment adviser: means a person registered under the investment advisers act of 1940. See Kansas Statutes 17-12a,102
- Filing: means the receipt under this act of a record by the administrator or a designee of the administrator. See Kansas Statutes 17-12a,102
- Investment adviser: means a person that, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or the advisability of investing in, purchasing, or selling securities or that, for compensation and as a part of a regular business, issues or promulgates analyses or reports concerning securities. See Kansas Statutes 17-12a,102
- Investment adviser representative: means an individual employed by or associated with an investment adviser or federal covered investment adviser and who makes any recommendations or otherwise gives investment advice regarding securities, manages accounts or portfolios of clients, determines which recommendation or advice regarding securities should be given, provides investment advice or holds herself or himself out as providing investment advice, receives compensation to solicit, offer, or negotiate for the sale of or for selling investment advice, or supervises employees who perform any of the foregoing. See Kansas Statutes 17-12a,102
- Securities and exchange commission: means the United States securities and exchange commission. See Kansas Statutes 17-12a,102
- Self-regulatory organization: means a national securities exchange registered under the securities exchange act of 1934, a national securities association of broker-dealers registered under the securities exchange act of 1934, a clearing agency registered under the securities exchange act of 1934, or the municipal securities rulemaking board established under the securities exchange act of 1934. See Kansas Statutes 17-12a,102
- State: means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. See Kansas Statutes 17-12a,102
(1) An individual who is exclusively employed by or associated with an investment adviser that is exempt from registration under Kan. Stat. Ann. § 17-12a403(b), and amendments thereto, or a federal covered investment adviser that is excluded from the notice filing requirements of Kan. Stat. Ann. § 17-12a405, and amendments thereto; and
(2) any other individual exempted by rule adopted or order issued under this act.
(c) Registration effective only while employed or associated. The registration of an investment adviser representative is not effective while the investment adviser representative is not employed by or associated with an investment adviser registered under this act or a federal covered investment adviser that has made or is required to make a notice filing under Kan. Stat. Ann. § 17-12a405, and amendments thereto.
(d) Limit on affiliations. An individual may transact business as an investment adviser representative for more than one investment adviser or federal covered investment adviser unless a rule adopted or order issued under this act prohibits or limits an individual from acting as an investment adviser representative for more than one investment adviser or federal covered investment adviser.
(e) Limits on employment or association. It is unlawful for an individual acting as an investment adviser representative, directly or indirectly, to conduct business in this state on behalf of an investment adviser or a federal covered investment adviser if the registration of the individual as an investment adviser representative is suspended or revoked or the individual is barred from employment or association with an investment adviser or a federal covered investment adviser by an order under this act, the securities and exchange commission, or a self-regulatory organization. Upon request from a federal covered investment adviser and for good cause, the administrator, by order issued, may waive, in whole or in part, the application of the requirements of this subsection to the federal covered investment adviser.
(f) Referral fees. An investment adviser registered under this act, a federal covered investment adviser that has filed a notice under Kan. Stat. Ann. § 17-12a405, and amendments thereto, or a broker-dealer registered under this act is not required to employ or associate with an individual as an investment adviser representative if the only compensation paid to the individual for a referral of investment advisory clients is paid to an investment adviser registered under this act, a federal covered investment adviser who has filed a notice under Kan. Stat. Ann. § 17-12a405, and amendments thereto, or a broker-dealer registered under this act with which the individual is employed or associated as an investment adviser representative.