Current through Register Vol. 43, No. 12, March 20, 2024
(a) Exemption
from registration. An investment adviser shall be exempt from the registration
requirements of K.S.A. 17-12a403, and amendments thereto, if both of the
following requirements are met:
(1) The
investment adviser shall meet each of the following conditions:
(A) Maintain its principal place of business
in Kansas;
(B) provide investment
advice solely to fewer than 15 clients;
(C) not hold itself out generally to the
public as an investment adviser; and
(D) not act as an investment adviser to any
investment company registered pursuant to section 8 of the investment company
act of 1940, 15 U.S.C. §
80a-8, as adopted by reference in K.A.R. 81-2-1,
or a company that has elected and has not withdrawn its election to be a
business development company pursuant to section 54 of the investment company
act of 1940, 15 U.S.C. §
80a-54, as adopted by reference in K.A.R.
81-2-1.
(2) Neither the
investment adviser nor any of its advisory affiliates or associated investment
adviser representatives shall be subject to a disqualification provision as
described in rule 262 of SEC regulation A, 17 C.F.R. 230.262, as adopted by
reference in K.A.R. 81-2-1.
(b) Notice filing. Each investment adviser
that qualifies for exemption under subsection (a) shall be subject to or exempt
from filing a notice with the administrator as follows:
(1) Notice filing requirement. Each
investment adviser that manages assets of no more than $25 million on December
31 each year shall complete the identifying information required by item 1 of
form ADV, part 1A and file the printed form with the administrator on or before
February 1 of the following year. No fee shall be required with the notice
filing required by this subsection.
(2) Exemption from notice filing requirement.
(A) Each investment adviser that manages
assets in excess of $25 million and is registered with the SEC shall be exempt
from the notice filing requirements of K.S.A. 17-12a405, and amendments
thereto, and of paragraph (1) of this subsection.
(B) Each investment adviser that manages
assets in excess of $25 million, is an exempt reporting adviser, and files
reports with the IARD system pursuant to SEC rule 204-4, 17 C.F.R. 275.204-4,
as adopted by reference in K.A.R. 81-2-1, shall be exempt from the notice
filing requirements of paragraph (1) of this subsection.
(c) Exemption for investment
adviser representatives. An investment adviser representative shall be exempt
from the registration requirements of K.S.A. 17-12a404, and amendments thereto,
if the individual meets the following requirements:
(1) Is employed by or associated with an
investment adviser that meets the exemption requirements under subsection
(a);
(2) is not subject to a
disqualification as described in rule 262 of SEC regulation A, 17 C.F.R.
230.262; and
(3) does not otherwise
act as an investment adviser representative.
(d) Transition. Each investment adviser or
investment adviser representative who becomes ineligible for the exemption
specified in this regulation shall comply with the registration or notice
filing requirements under the act within 90 days after the date of
ineligibility.
