710 Ind. Admin. Code 4-9-5

Current through December 4, 2024

Section 710 IAC 4-9-5 - Exemption for certain broker-dealers

Authority: IC 23-19-6-5

Affected: IC 23-19-5-2

Sec. 5.

(a) An investment adviser that is registered as a broker-dealer or agent shall be exempt from IC 23-19-5-2 with respect to any transaction in which the broker-dealer or agent acts solely:

(1) by means of publicly distributed written materials or publicly made oral statements;

(2) by means of written materials or oral statements that do not purport to meet the objectives or needs of specific individuals or accounts;

(3) through the issuance of statistical information containing no expressions of opinion as to the investment merits of a particular security; or

(4) through any combination of the services in subdivisions (1) through (3).

However, the materials and oral statements must include a statement that, if the purchaser of the advisory communication uses the services of the investment adviser in connection with a sale or purchase of a security that is a subject of the communication, the investment adviser may act as principal for his or her own account or as agent for another person.

(b) As used in this section, "publicly distributed written materials" means materials that are distributed to thirty-five (35) or more persons who pay for access to the materials.

(c) As used in this section, "publicly made oral statements" means statements made simultaneously to thirty-five (35) or more persons who pay for access to the statements.

(d) The requirement that the investment adviser disclose that it may act as principal or agent for another person in the sale or purchase of a security that is the subject of investment advice does not relieve the investment adviser of any disclosure obligation that may be imposed by IC 23-19 or this rule.

(e) A broker-dealer that is required to register as an investment adviser under IC 23-19 shall be exempt from the record keeping requirements under section 7 of this rule, with respect to transactions for which it does not receive special compensation, so long as the investment adviser is in compliance with the broker-dealer record keeping requirements under IC 23-19.

710 IAC 4-9-5

Securities Division; 710 IAC 4-9-5; filed Jun 28, 2010, 2:36 p.m.: 20100728-IR-710100044FRA

Readopted filed 5/12/2016, 1:47 p.m.: 20160608-IR-710160136RFA

Readopted filed 11/30/2022, 4:01 p.m.: 20221228-IR-710220301RFA