Wyoming Enacts Investment Adviser Laws

May 4, 2017

Wyoming is no longer the only state that does not have investment adviser laws.  Now, certain advisers that are headquartered in Wyoming will have to register with the state instead of the SEC. Wyoming legislators enacted the Uniform Securities Act, which will be administered by the Office of the Secretary of State.  That Office now has the power to administer, establish requirements for the registration of investment advisers, exemptions to investment registration, filing requirements and procedures.  The law also prohibits fraudulent activity concerning investment transactions and investment advice; and establishes criminal penalties, civil liability and a process for judicial review. The Act’s full implementation date is July 1, 2017.

Prior to the enactment of the law, investment advisers headquartered in Wyoming with less than $25 million of assets could register with the SEC. These advisers will now have to re-register as Wyoming investment advisers.  There are 21 investment adviser firms representing about $518 million of assets that will be required on July 1, 2017 to switch to a state registration from the one they hold with the SEC. Any firm with more than $100 million of assets that is registered with the SEC as a federally covered investment adviser will not fall under the state's jurisdiction.

Click here to access information about the new law.