Utah Administrative Code
Topic - Commerce
Title R164 - Securities
Rule R164-2 - Investment Adviser - Unlawful Acts
Section R164-2-5 - Client Requirements
Universal Citation: UT Admin Code R 164-2-5
Current through Bulletin 2024-18, September 15, 2024
A client entering into a contract must be:
(1) a natural person or a company who, immediately after entering into the contract, has at least $1,100,000 under the management of the investment adviser;
(2)
(a) a
person who the investment adviser and investment adviser representatives
reasonably believe is a natural person or a company whose net worth when the
contract is entered into exceeds $2,200,000;
(b) to calculate the net worth of a natural
person:
(i) assets held jointly with that
person's spouse may be included;
(ii) the person's primary residence shall not
be included as an asset;
(iii)
(A) any debt secured by the primary residence
up to the estimated fair market value of the residence shall not be deducted as
a liability;
(B) but if the amount
of the outstanding debt at the time of calculation exceeds the amount
outstanding 60 days before the time of calculation, other than as a result of
the acquisition of the primary residence, the amount of such excess shall be
deducted as a liability; and
(iv) any debt secured by a person's primary
residence in excess of the estimated market value of the residence shall be
deducted as a liability;
(3) a qualified purchaser as defined in Section 2(a)(51)(A) of the Investment Company Act of 1940 when the contract is entered into; or
(4) a natural person who immediately before entering into the contract is:
(a) an executive officer, director, trustee,
general partner, or person serving in a similar capacity of the investment
adviser; or
(b) an employee of the
investment adviser other than an employee performing solely clerical,
secretarial or administrative functions with regard to the investment adviser
who, in connection with the employee's regular functions or duties,
participated in the investment activities of such investment adviser if the
employee has been performing such functions and duties for or on behalf of the
investment adviser, or has been performing substantially similar functions or
duties for or on behalf of another company for at least 12 months.
Disclaimer: These regulations may not be the most recent version. Utah may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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