(a)
An insurer may not enter into a contract under which a person undertakes, for a
fee, to regularly furnish investment advice to the insurer with respect to any
of its separate accounts maintained for variable life insurance policies unless
one of the following conditions are met:
(1)
The person providing the advice is registered as an investment advisor under
15 U.S.C.A. §§ 80b-1-80 b-21 under the
Employe Retirement Income Security Act of 1974 (ERISA), the act of September 2,
1974 (Pub. L. 93-406, 88 Stat. 829).
(2) The insurer has filed with the
Commissioner and continues to file annually the following information and
statements concerning the advisory.
(i) The
name and form of organization, state of organization and its principal place of
business.
(ii) The names and
addresses of its partners, officers, directors and persons performing similar
functions or, if the investment advisor is an individual, of the
individual.
(iii) A written
standard of conduct, complying in substance with the requirements of §
82.49 (relating to standards of
conduct), which has been adopted by the investment advisor and is applicable to
the investment advisor, its officers, directors and affiliates.
(iv) A statement provided by the proposed
advisor as to whether the advisor or a person associated therewith has been
convicted within 10 years of a felony or misdemeanor arising out of that
person's conduct as an employe, salesman, officer or director of an insurance
company, a bank, an insurance agent, a securities broker or an investment
advisor, involving embezzlement, fraudulent conversion or misappropriation of
funds or securities or involving the violation of
18 U.S.C. §§
1341,
1342 or
1343 (relating to frauds and
swindles; fictitious name or address; or fraud by wire, radio or television);
has been permanently or temporarily enjoined by order, judgment or decree of a
court of competent jurisdiction from acting as an investment advisor,
underwriter, broker or dealer or as an affiliated person or as an employe of an
investment company, bank or insurance company or from engaging in or continuing
conduct or practice in connection with that activity; has been found by Federal
or State regulatory authorities to have willfully violated or has acknowledged
willful violation of Federal or State securities laws or State insurance laws
or of a rule or regulation under those laws; or has been censured, been denied
an investment advisor registration, had a registration as an investment advisor
revoked or suspended, or been barred or suspended from being associated with an
investment advisor by order of Federal or State regulatory
authorities.
