Fiscal Note - SB 0375 - Registration of Security Dealers and Securities Within MO
L.R. NO. 1417-04
BILL NO. Truly Agreed To And Finally Passed HCS for SB 375
SUBJECT: Secretary of State: Securities
TYPE: Original
DATE: April 30, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Office of the Secretary of State (SOS) assume the proposed
legislation would have no fiscal impact on their agency. This proposal would
bring Missouri statutes in compliance with federal law, the National
Securities Markets Improvement Act, October 1996.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
$0 $0 $0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
The proposed legislation would change Missouri's Uniform Securities Act to
regulate "federal covered advisors" and "federal covered securities". It
would add federal covered advisors to the list of entities that would qualify
as an investment advisor representative to transact business in this state.
Under current law, a person is prohibited from transacting business as an
investment advisor unless the person: 1) is registered; or 2) has no place of
business in this state, depending on client status and in a 12 month period
does not direct business communications in any manner to more than five
clients. It would prohibit a federal covered advisor from employing,
supervising, or associating with an unregistered investment adviser
representative, unless the representative is exempt from registration or has
a qualifying client base. This act would establish registration requirements
and filing and renewal fees for federal covered advisers. Federal covered
advisers would be required to comply with record keeping and financial report
filing pursuant to pertinent state and federal law.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Office of the Secretary of State
This Fiscal Note is not an official copy and should not be quoted or cited.