Abstract: This article analyzes judicial approaches to interpreting the definition of an investment adviser under the Investment Advisers Act of 1940, the United States federal statute governing investment advisers. It starts by noting the role of investment advisers in the United States financial services industry and introduces the statutory definition of an investment adviser and each element of this definition. It explains briefly why adviser status is important and touches on the relationship between investment adviser status and registration as an investment adviser with the United States Securities & Exchange Commission. Based on cases initiated by the United States Securities & Exchange Commission, the United States Department of Justice and investment adviser clients alleging investment adviser violations of the Investment Advisers Act of 1940, the article discusses key judicial interpretations of the elements of the definition of investment adviser. Along the way, the author shares his observations about these judicial approaches to interpreting the definition of an investment adviser by, among other things, evaluating some of the strengths and weaknesses reflected in these judicial approaches.
Observations on Judicial Approaches to Discerning Investment Adviser Status under the Investment Advisers Act of 1940
Brian Carroll*)*)Brian Carroll, an attorney and a certified public accountant, serves as a Senior Special Counsel at the United States Securities & Exchange Commission, Philadelphia Regional Office. He is also an Adjunct Professor of Law at Villanova Law School. The United States Securities & Exchange Commission ("Commission") disclaims responsibility for any private publications or statements of any of the Commission’s employee or commissioner. This article expresses the author’s views and does not necessarily reflect those of the Commission, the commissioners, or other members of the staff.ALJ 2015, 99 Heft 1 v. 21.4.2015
Inhalt
- I. Introduction
- II. Investment Adviser: Definition, Exceptions and an Exemption
- III. Investment Adviser Status and Investment Adviser Registration with the Commission
- IV. Cases that Implicate the Investment Adviser Definition
- V. Observations on Judicial Approaches to Discerning Investment Adviser Status
- VI. Conclusion
