The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
004
:
BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES, AND FEDERAL COVERED INVESTMENT ADVISERS
(Cite as: 9 V.S.A. § 5404)
-
§ 5404. Investment adviser representative registration requirement and exemptions
(a) It is unlawful for an individual to transact business in this State as an investment
adviser representative unless the individual is registered under this chapter as an
investment adviser representative or is exempt from registration as an investment
adviser representative under subsection (b) of this section.
(b) The following individuals are exempt from the registration requirement of subsection
(a) of this section:
(1) an individual who is employed by or associated with an investment adviser that is
exempt from registration under subsection 5403(b) of this chapter or a federal covered
investment adviser that is excluded from the notice filing requirements of section
5405 of this chapter; and
(2) any other individual exempted by rule adopted or order issued under this chapter.
(c) The registration of an investment adviser representative is not effective while the
investment adviser representative is not employed by or associated with an investment
adviser registered under this chapter or a federal covered investment adviser that
has made or is required to make a notice filing under section 5405 of this chapter.
(d) An individual may transact business as an investment adviser representative for more
than one investment adviser or federal covered investment adviser unless a rule adopted
or order issued under this chapter prohibits or limits an individual from acting as
an investment adviser representative for more than one investment adviser or federal
covered investment adviser.
(e) It is unlawful for an individual acting as an investment adviser representative, directly
or indirectly, to conduct business in this State on behalf of an investment adviser
or a federal covered investment adviser if the registration of the individual as an
investment adviser representative is suspended or revoked or the individual is barred
from employment or association with an investment adviser or a federal covered investment
adviser by an order under this chapter, the Securities and Exchange Commission, or
a self-regulatory organization. Upon request from a federal covered investment adviser
and for good cause, the Commissioner, by order issued, may waive, in whole or in part,
the application of the requirements of this subsection to the federal covered investment
adviser.
(f) An investment adviser registered under this chapter, a federal covered investment
adviser that has filed a notice under section 5405 of this chapter, or a broker-dealer
registered under this chapter is not required to employ or associate with an individual
as an investment adviser representative if the only compensation paid to the individual
for a referral of investment advisory clients is paid to an investment adviser registered
under this chapter, a federal covered investment adviser who has filed a notice under
section 5405, or a broker-dealer registered under this chapter with which the individual
is employed or associated as an investment adviser representative. (Added 2005, No. 11, § 1, eff. July 1, 2006.)