PUBLIC LAW 86-750-SEPT. 13, 1960
Public Law 86-750 AN ACT To amend certain provisions of the Investment Advisers Act of 1940, as amended.
September 13, 1960
Be it enacted by the Senate and House of Representatives of the Investment A d United States of America in Congress assembled, That (a) paragraphv i s e r s Act of 1940,12 of subsection (a) of section 202 of the Investment Advisers Act amendment. 54 Stat. 847. of 1940, as amended, is amended to read as follows: 15 USC 80b-2. "(12) 'Investment company', affiliated person, and 'insurance company' have the same meanings as in the Investment Company Act of 1940. '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 such company." (b) Paragraph (18) of section 202(a) of the Investment Advisers Act of 1940, as amended, is amended by striking out "the Philippine Islands,". SEC. 2. Clause (F) of paragraph (1) of section 203(c) of the Investment Advisers Act of 1940, as amended, is amended to read as IS u s e 80b-3. follows: Registration ap"(F) whether such investment adviser, or any partner, officer, di- plication. rector thereof, or any person performing similar functions, or any Information r e person directly or indirectly controlling or controlled by such invest- quired. ment adviser, is subject to any disqualification which would be a basis for denial, suspension, or revocation of registration of such investment adviser under the provisions of subsection (d), and". SEC. 3. (a) Paragraph (2) of subsection (c) of section 203 of the Investment Advisers Act of 1940, as amended, is amended to read as follows: "(2) a statement as to whether the principal business of such investment adviser consists or is to consist of acting as investment adviser and a statement as to whether a substantial part of the business of such investment adviser consists or is to consist of rendering investment supervisory services." (b) Subsection (d) of section 203 of the Investment Advisers Act of 1940, as amended, is amended to read as follows: Denial or s u s "(d) The Commission shall, after appropriate notice and op- ^__ of regis-pension portunity for hearing, by order deny registration to, or suspend for TratTon a period not exceeding twelve months or revoke the registration of, an investment adviser, if it finds that such denial, suspension, or revocation is in the public interest and that (1) such investment adviser, whether prior or subsequent to becoming such, or (2) any partner, officer, or director thereof, or any person performing similar functions, or (3) any person directly or indirectly controlling or controlled by such investment adviser, whether prior or subsequent to becoming such, (A) has willfully made or caused to be made in any application for registration or report filed with the Commission under this title, or in any proceeding oef ore the Commission with respect to registration, any statement which was at the time and in the light of the circumstances under which it was made false or misleading with respect to any material fact, or who has omitted to state in any such application or report any material fact which is required to be stated therein; or (B) has been convicted within ten years preceding the filing of the application or at any time thereafter of any felony or misdemeanor which the Commission finds (i) involves the purchase or sale of any security, (ii) arises out of the conduct of the business of a broker, dealer, or investment adviser, (iii) involves embezzlement, fraudulent conversion, or misappropriation of funds or securities, or (iv) involves the violation of section 1341, 1342, or 1343 of title 18, United 62 Stat. 643. States Code, as heretofore or hereafter amended; or (C) is perma-