Current through February 27, 2024
1.
In addition to any other recordkeeping requirement, an investment adviser who
is registered or required to be registered under the Investment Advisers Act of
1940 shall maintain a true, accurate and current record of every security
transaction in which the investment adviser or any advisory representative of
the investment adviser has, or by reason of any transaction acquires, any
direct or indirect beneficial ownership, unless the transaction is:
(a) In an account over which neither the
investment adviser nor the advisory representative of the investment adviser
has any direct or indirect influence or control; or
(b) A direct obligation of the United
States.
2. The record
described in subsection 1:
(a) Must include:
(1) The title and amount of the security
involved;
(2) The date and nature
of the transaction, including, without limitation, the purchase, sale or other
acquisition or disposition;
(3) The
price at which the transaction was effected; and
(4) The name of the broker-dealer or bank
with or through whom the transaction was effected; and
(b) May contain a statement declaring that
the reporting or recording of the transaction described in this section must
not be construed as an admission that the investment adviser or advisory
representative of the investment adviser has any direct or indirect beneficial
ownership in the security.
3. The transaction described in subsection 1
must be recorded not later than 10 days after the end of the calendar quarter
in which the transaction was effected.
4. The failure of an investment adviser to
record the transaction of an advisory representative of the investment adviser
shall not be deemed to be a violation of this section if the investment adviser
establishes that the investment adviser instituted adequate procedures and used
reasonable diligence to promptly obtain reports of all transactions required to
be recorded pursuant to this section.
5. As used in this section:
(a) "Advisory representative of an investment
adviser" means:
(1) A partner, officer or
director of an investment adviser;
(2) An employee of an investment adviser who:
(I) Participates in any way in the
determination of which recommendations will be made; or
(II) In connection with the duties of the
employee, obtains any information concerning which securities are being
recommended before the effective dissemination of the recommendations;
or
(3) Any of the
following persons who obtain information concerning securities recommendations
being made by the investment adviser before the effective dissemination of the
recommendations:
(I) A person in a control
relationship to the investment adviser;
(II) An affiliated person of a controlling
person; or
(III) An affiliated
person of an affiliated person.
(b) "Control" means the power to exercise a
controlling influence over the management or policies of a company, unless such
power is solely the result of an official position with the company. A person
who owns beneficially, either directly or through one or more controlled
companies, more than 25 percent of the voting securities of a company shall be
presumed to control such company.
Added
to NAC by Sec'y of State by
R018-21A,
eff. 6/2/2023
NRS
90.390,
90.750
