(a) Except with respect to a federal covered investment adviser described in subsection (b), it is unlawful for a federal covered investment adviser to transact business in this State as a federal covered investment adviser unless the federal covered investment adviser complies with subsection (c).
(b) The following federal covered investment advisers are not required to comply with subsection (c):
(1) a federal covered investment adviser without a place of business in this State if its only clients in this State are:
(A) federal covered investment advisers, investment advisers registered under this chapter, and broker-dealers registered under this chapter;
(B) institutional investors;
(C) bona fide preexisting clients whose principal places of residence are not in this State; or
(D) other clients specified by rule adopted or order issued under this chapter;
(2) a federal covered investment adviser without a place of business in this State if the person has had, during the preceding twelve months, not more than five clients that are resident in this State in addition to those specified under paragraph (1); and
(3) any other person excluded by rule adopted or order issued under this chapter.
(c) A person acting as a federal covered investment adviser, not excluded under subsection (b), shall file a notice, a consent to service of process complying with Section 35-1-611, and such records as have been filed with the Securities and Exchange Commission under the Investment Advisers Act of 1940 required by rule adopted or order issued under this chapter and pay the fees specified in Section 35-1-410(a).
(d) The notice under subsection (c) becomes effective upon its filing.
HISTORY: 2005 Act No. 110, Section 1, eff January 1, 2006; 2006 Act No. 331, Section 1, eff upon approval (became law without the Governor's signature on June 7, 2006).
Effect of Amendment
The 2006 amendment, in subsection (c), substituted "Section 35-1-410(a)" for "Section 35-1-410(e)".
Structure South Carolina Code of Laws
Chapter 1 - South Carolina Uniform Securities Act Of 2005
Section 35-1-101. Short title.
Section 35-1-102. Definitions.
Section 35-1-103. References to federal statutes.
Section 35-1-104. References to federal agencies.
Section 35-1-105. Electronic records and signatures.
Section 35-1-201. Exempt securities.
Section 35-1-202. Exempt transactions.
Section 35-1-203. Additional exemptions and waivers.
Section 35-1-204. Denial, suspension, revocation, condition, or limitation of exemptions.
Section 35-1-301. Securities registration requirement.
Section 35-1-302. Notice filing.
Section 35-1-303. Securities registration by coordination.
Section 35-1-304. Securities registration by qualification.
Section 35-1-305. Securities registration filings.
Section 35-1-306. Denial, suspension, and revocation of securities registration.
Section 35-1-307. Waiver and modification.
Section 35-1-401. Broker-dealer registration requirement; exemptions.
Section 35-1-402. Agent registration requirement and exemptions.
Section 35-1-403. Investment adviser registration requirement; exemptions.
Section 35-1-404. Investment advisor representative registration requirement; exemptions.
Section 35-1-405. Federal covered investment adviser notice filing requirement.
Section 35-1-407. Succession and change in registration of broker-dealer or investment adviser.
Section 35-1-410. Examination and filing fee requirements.
Section 35-1-411. Postregistration requirements.
Section 35-1-501. General fraud.
Section 35-1-502. Prohibited conduct in providing investment advice regarding securities.
Section 35-1-503. Evidentiary burden.
Section 35-1-504. Filing of sales and advertising literature.
Section 35-1-505. Misleading filings.
Section 35-1-506. Misrepresentations concerning registration or exemption.
Section 35-1-507. Qualified immunity.
Section 35-1-508. Criminal penalties.
Section 35-1-509. Civil liability.
Section 35-1-510. Rescission offers.
Section 35-1-601. Administration.
Section 35-1-602. Investigations and subpoenas.
Section 35-1-603. Civil enforcement.
Section 35-1-604. Administrative enforcement.
Section 35-1-605. Rules, forms, orders, interpretative opinions, and hearings.
Section 35-1-606. Administrative files and opinions.
Section 35-1-607. Public records; confidentiality.
Section 35-1-608. Uniformity and cooperation with other agencies.
Section 35-1-609. Judicial review.
Section 35-1-610. Jurisdiction.
Section 35-1-611. Service of process.
Section 35-1-612. Severability clause.
Section 35-1-701. Application of act to existing proceeding and existing rights and duties.
Section 35-1-703. Effective date.
Section 35-1-800. Definitions.
Section 35-1-810. Notification of agencies.
Section 35-1-830. Disclosure of financial exploitation to designated third party.
Section 35-1-850. Delay of a disbursement or transaction due to suspected financial exploitation.