SEC Division of Investment Management staff letter: Dougherty & Company LLC

The Division of Investment Management staff will not recommend enforcement action under Section 206(4) of the Investment Advisers Act and Rule 206(4)-3 if a registered investment adviser pays cash solicitation fees to a solicitor subject to a Commission order, provided the solicitor is not barred or suspended from acting in any capacity under federal securities laws. This relief applies only if the solicitor complies with all terms of the disqualifying order, including the payment of disgorgement, penalties, and fines, and discloses the order to solicited persons in writing for ten years following the order's date. The staff will no longer respond to individual no-action requests for such arrangements unless they present novel or unusual issues.

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Effective November 4, 2022, This Letter is Withdrawn. Please consult the following web page for more information: https://www.sec.gov/divisions/investment/im-modified-withdrawn-staff-statements .

Dougherty & Company LLC

March 21, 2003

Response of the Office of Chief Counsel Division of Investment Management IM Ref. No. 20033211327 File No. 008-21937

Your letter dated May 28, 2002 requests our assurance that we would not recommend enforcement action to the Commission under Section 206(4) of the Investment Advisers Act of 1940 ("Advisers Act") and Rule 206(4)-3 thereunder if any investment adviser that is required to be registered pursuant to Section 203 of the Advisers Act ("investment adviser") pays Dougherty & Company LLC ("Dougherty"), a broker-dealer registered with the Commission, or any of Dougherty's associated persons, a cash fee, directly or indirectly, for the solicitation of advisory clients in accordance with Rule 206(4)-3, notwithstanding two Commission administrative orders (the "Dougherty Orders") that otherwise would preclude such an investment adviser from paying Dougherty a solicitation fee. 1 Under the circumstances set forth below, we would not recommend enforcement action to the Commission if any investment adviser that is required to be registered pays Dougherty for the solicitation of advisory clients, notwithstanding the Dougherty Orders. 2

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Source: Securities and Exchange Commission — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works