Current through Register Vol. 49, No. 13, September 23, 2024
Subpart 1.
Books and records; investment advisers.
Every investment adviser registered or required to be
registered under the Minnesota Securities Act, Minnesota Statutes, chapter 80A,
shall make and keep true, accurate, and current the following books, ledgers,
and records.
A. Those books and
records required to be maintained and preserved in compliance with Rule 204-2
of the Investment Advisers Act of 1940, Code of Federal Regulations, title 17,
section 275.204 -2, notwithstanding the fact that the investment adviser is not
registered or required to be registered under the Investment Advisers Act of
1940.
B. A file containing a copy
of all written communications received or sent regarding any litigation
involving the investment adviser, and regarding any written customer or client
complaint.
C. Written information
about each investment advisory client that is the basis for making any
recommendation or providing any investment advice to such client.
D. Written procedures to supervise the
activities of employees and investment adviser representatives that are
reasonably designed to achieve compliance with applicable securities laws and
regulations.
E. A file containing a
copy of each document (other than any notices of general dissemination) that
was filed with or received from any state or federal agency or self-regulatory
organization and that pertains to the registrant or its investment adviser
representatives, including all applications, amendments, renewal filings, and
correspondence.
F. For investment
advisers who have custody, as that term is defined in part
2876.4116, subpart
3, item A, of client funds or
securities, all records and evidence of compliance required by Rule 206(4)-2
under the Investment Advisers Act of 1940.
Subp. 2.
Out-of-state investment
advisers.
Every investment adviser that has its principal place of
business in a state other than this state shall be exempt from the requirements
of this part, provided the investment adviser is registered in such state and
is in compliance with the state's recordkeeping requirements.
Subp. 3.
Manner of preservation;
investment advisers.
Every investment adviser subject to subpart
1 shall preserve the
following records in the manner prescribed.
A. All books and records required to be made
under the provisions of subpart
1, items A to F, inclusive
(except for books and records required to be made under the provisions of
paragraphs (a)(11) and (a)(16) of SEC Rule 204-2), shall be maintained and
preserved in an easily accessible place for a period of not less than five
years from the end of the fiscal year during which the last entry was made on
record, the first two years in the principal office of the investment
adviser.
B. Partnership articles
and any amendments, articles of incorporation, charters, minute books, and
stock certificate books of the investment adviser and of any predecessor, shall
be maintained in the principal office of the investment adviser and preserved
until at least three years after termination of the enterprise.
C. Books and records required to be made
under the provisions of paragraphs (a)(11) and (a)(16) of SEC Rule 204-2 shall
be maintained and preserved in an easily accessible place for a period of not
less than five years, the first two years in the principal office of the
investment adviser, from the end of the fiscal year during which the investment
adviser last published or otherwise disseminated, directly or indirectly, the
notice, circular, advertisement, newspaper article, investment letter,
bulletin, or other communication including by electronic media.
D. Notwithstanding other record preservation
requirements of this part, the following records or copies shall be required to
be maintained at the business location of the investment adviser from which the
customer or client is being provided or has been provided with investment
advisory services:
(1) records required to be
preserved under paragraphs (a)(3), (a)(7) to (10), (a)(14) and (15), (a)(17),
(b) and (c) inclusive, of SEC Rule 204-2; and
(2) the records or copies required under the
provision of paragraphs (a)(11) and (a)(16) of SEC Rule 204-2 which records or
related records identify the name of the investment adviser representative
providing investment advice from that business location, or which identify the
business locations' physical address, mailing address, electronic mailing
address, or telephone number. The records will be maintained for the period
described in this subpart.
Subp. 4.
Books and records;
broker-dealers.
Every broker-dealer registered or required to be registered
under the Minnesota Securities Act, Minnesota Statutes, chapter 80A, shall make
and keep current its books and records in compliance with Code of Federal
Regulations, title 17, sections 240.17a-3 and 240.17a-4.
Statutory Authority: MS s
45.023;
80A.82
