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2008-10-20

Third-Party Solicitor Exemption (LAC 10:XIII.1301 and 1311)

The Commissioner of the Louisiana Office of Financial Institutions amends LAC 10:XIII.1301 and 1311 to exempt third-party solicitors from standard examination requirements under Chapter 13. A qualifying third-party solicitor is an investment adviser representative who exclusively refers clients to other advisory firms, provides no specific investment advice, and receives only referral fees. This exemption removes applicable registration and compliance obligations for qualifying representatives, streamlining regulatory oversight while maintaining investor protection standards.

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RULE Office of the Governor Office of Financial Institutions Third-Party Solicitor Exemptions (LAC 10:XIII.1301 and 1311) In accordance with the Louisiana Securities Law, R.S.51:701 et seq., and particularly, R.S.51:703(D)(2)(a), and the Louisiana Administrative Procedure Act, R.S.49:950 et seq., the Commissioner of the Office of Financial Institutions hereby amends LAC 10:XIII.1301 and 1311 to provide an exemption for Third-Party Solicitors from the examination requirements established in LAC 10:XIII, Chapter 13. Title 10 FINANCIAL INSTITUTIONS, CONSUMER CREDIT, INVESTMENT SECURITIES AND UCC Part XIII. Investment Securities Subpart 1. Securities Chapter 13. Investment Adviser Registration Procedure §1301. Definitions A. ... B. Third-Party Solicitor―an investment adviser representative who meets all of the following criteria:

  1. investment advisory business consists solely of referring individuals to other investment adviser firm(s);

  2. provides no advice to individuals regarding specific investments;

  3. fees consist entirely of referral fees received from the investment adviser firms to whom the investment adviser representative makes referrals. AUTHORITY NOTE: Promulgated in accordance with R.S. 51:703(D)(2)(a). HISTORICAL NOTE: Promulgated by the Office of the Governor, Office of Financial Institutions, LR 32:2055 (November 2006), effective January 1, 2007, amended LR 34:2125 (October 2008). §1311. Exemptions A. ... B. The requirements of this rule shall not apply to third￾party solicitors. AUTHORITY NOTE: Promulgated in accordance with R.S.51:703(D)(2)(a). HISTORICAL NOTE: Promulgated by the Office of the Governor, Office of Financial Institutions, LR 32:2056 (November 2006), effective January 1, 2007, amended LR 34:2126 (October 2008). John Ducrest Commissioner 0810#027

  4. fees consist entirely of referral fees received from the investment adviser firms to whom the investment adviser representative makes referrals. AUTHORITY NOTE: Promulgated in accordance with R.S. 51:703(D)(2)(a). HISTORICAL NOTE: Promulgated by the Office of the Governor, Office of Financial Institutions, LR 32:2055 (November 2006), effective January 1, 2007, amended LR 34:2125 (October 2008). §1311. Exemptions A. ... B. The requirements of this rule shall not apply to third￾party solicitors. AUTHORITY NOTE: Promulgated in accordance with R.S.51:703(D)(2)(a). HISTORICAL NOTE: Promulgated by the Office of the Governor, Office of Financial Institutions, LR 32:2056 (November 2006), effective January 1, 2007, amended LR 34:2126 (October 2008). John Ducrest Commissioner 0810#027

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