As stipulated in paragraphs 2 and 3 of subsection (a), the “investment advisory contract” refers to any contract or agreement in which a person requires him or her to act as an investment advisor for another person as an investment company listed in sub-chapter I of this chapter or to manage it. A transfer clause in an investment advisory contract should, after written notification of a transfer (normally 30 to 60 days), meet a reasonable period of time to oppose the client. Language should make the client understand that an failure to object to an assignment in days X is considered a de facto consent to the assignment. The Commission may, as a general rule, prohibit or impose conditions or restrictions on the use of agreements that require clients or clients of an investment advisor to resolve future disputes between them, arising from federal securities laws, the rules and regulations mentioned in them, or the rules of a self-regulatory organization, when it finds that such a ban , the imposition of conditions or restrictions is in the public interest and investor protection. Section 205 (a) (2) of the Investment Advisers Act of 1940 prohibits consultants from entering into an investment advisory contract with a client who “does not provide, for the most part, that the investment advisor does not terminate such a contract without the agreement of the other contracting party.” This is the prerequisite for a consulting contract to give the client the opportunity to accept the loan of his contract to another advisor. Wrap pricing programs and other discretionary advisory programs offering similar advice to a number of clients should be structured to avoid the creation of an unregistered investment company. The Commission adopted Article 3 bis-4 as part of the Investment Companies Act 1940, in order to create a non-exclusive safe haven based on the definition of an investment company for advisory programs that meet certain requirements. See Investment Company Release No 22579 (March 24, 1997). However, it is important for consultants that negative consent in the course of an assignment is generally permitted. The SEC confirmed this view with a series of action letters from the 1980s, which were later confirmed in other letters of action in the 1990s. 1970 – pub.
L. 91-547 replaces the reference to section “80b-3 (b)” for “80b-3” of that title in the first sentence, renamed the second sentence, called “kl.” (A) and puts kl. (B) and points (i) and (ii) as well as provisions to account for compensation on the basis of the company`s or fund`s assets. A term management method for the recording of investments in a securities index or other measure of investment performance, as defined by the Commission`s rules, regulations or orders, the third sentence from which compensation must be measured is replaced by the words “account of a person other than an investment company” in the fourth , former third sentence, “paragraphs 2) and (3) of this section” for the “present section” and in the definition of “advisory contract”: under sub-chapter I of this chapter” for “account for a person other than an investment company.” Recently, the Staff was asked to give its opinion on the following situation: a fund had separate administrative and board agreements and its board of directors wanted to consolidate the terms of any agreement into a single “administrative arrangement” without obtaining shareholder approval for the single agreement provided section 15 (a) of the Investment Companies Act 1940.