HOUSE DOCKET, NO. 3500        FILED ON: 1/14/2009

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 303

The Commonwealth of Massachusetts

_______________

In the Year Two Thousand Nine

_______________

An Act relative to investment adviser registration..

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1.Section 202(a) of chapter 110A of the General Laws, as appearing in the 2007 Official Edition, is hereby amended by adding the following:  Notwithstanding the above, those investment advisers, registered with the Division and with a principal place of business located in Massachusetts, who have custody, as defined in the Form ADV, over their clients’ funds and/or securities, to maintain those funds and/or securities with a qualified custodian as defined in Rule 206(4)-2 under the Investment Advisers Act of 1940.  Failure to comply with this requirement shall be grounds to deny or revoke the investment adviser’s registration under section 204 of this chapter.