Missouri Code of State Regulations › Title 15 - ELECTED OFFICIALS › Division 30 - Secretary of State › Chapter 51 - Broker-Dealers, Agents, Investment Advisers, and Investment Adviser Representatives › Section 15 CSR 30-51.140 - Records Required of and To Be Preserved by Investment Advisers

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule prescribes the books and records
				  to be kept by investment advisers that comply with the Missouri Securities Act
				  of 2003 that became effective September 1, 2003.
(1) Every investment adviser registered or
				required to be registered under the Missouri Securities Act of 2003 shall make
				and keep true, accurate and current the following books and records relating to
				its investment advisory business:
(A) A
				journal or journals, including cash receipts and disbursements, records, and
				any other records of original entry forming the basis of entries in any
				ledger;
(B) General and auxiliary
				ledgers (or other comparable records) reflecting asset, liability, reserve,
				capital, income and expense accounts;
(C) A memorandum of each order given by the
				investment adviser for the purchase or sale of any security, of any instruction
				received by the investment adviser concerning the purchase, sale, receipt or
				delivery of a particular security, and of any modification or cancellation of
				any such order or instruction. Such memoranda shall show the terms and
				conditions of the order, instruction, modification or cancellation; shall
				identify the person connected with the investment adviser who recommended the
				transaction to the client and the person who placed such order; and shall show
				the account for which entered, the date of entry, and the bank, broker or
				dealer by or through whom executed where appropriate. Orders entered pursuant
				to the exercise of discretionary power shall be so designated;
(D) All checkbooks, bank statements,
				cancelled checks and cash reconciliations of the investment adviser;
(E) All bills or statements (or copies
				thereof), paid or unpaid, relating to the business of the investment adviser as
				such;
(F) All trial balances,
				financial statements, and internal audit working papers relating to the
				business of such investment adviser;
(G) Originals of all written communications
				received and copies of all written communications sent by such investment
				adviser relating to any recommendation made or proposed to be made and any
				advice given or proposed to be given, any receipt, disbursement or delivery of
				funds or securities, or the placing or execution of any order to purchase or
				sell any security. Provided, however, the investment adviser shall not be
				required to keep any unsolicited market letters and other similar
				communications of general public distribution not prepared by or for the
				investment adviser, and that if the investment adviser sends any notice,
				circular or other advertisement offering any report, analysis, publication or
				other investment advisory service to more than ten (10) persons, the investment
				adviser shall not be required to keep a record of the names and addresses of
				the persons to whom it was sent; except that if such notice, circular or
				advertisement is distributed to persons named on any list, the investment
				adviser shall retain with the copy of such notice, circular or advertisement a
				memorandum describing the list and the source thereof;
(H) A list or other record of all accounts in
				which the investment adviser is vested with any discretionary power with
				respect to the funds, securities or transactions of any client;
(I) All powers of attorney and other
				evidences of the granting of any discretionary authority by any client to the
				investment adviser, or copies thereof;
(J) All written agreements (or copies
				thereof) entered into by the investment adviser with any client or otherwise
				relating to the business of such investment adviser as such;
(K) A copy of each notice, circular,
				advertisement, newspaper article, investment letter, bulletin or other
				communication that the investment adviser circulates or distributes, directly
				or indirectly, to ten (10) or more persons (other than persons connected with
				such investment adviser), and if such notice, circular, advertisement,
				newspaper article, investment letter, bulletin or other communication
				recommends the purchase or sale of a specific security and does not state the
				reasons for such recommendation, a memorandum of the investment adviser
				indicating the reasons therefor;
(L) A copy of each written disclosure
				statement and each amendment or revision thereof, given or sent to any client
				or prospective client of such investment adviser, and a record of the dates
				that each written disclosure statement, and each amendment or revision thereof,
				was given, or offered to be given, to any client or prospective client who
				subsequently becomes a client;
(M)
				All written agreements or acknowledgments of receipt obtained from clients and
				copies of the disclosure documents delivered to clients by these solicitors
				pursuant to
				15
				CSR 30-51.145; and
(N) All accounts, books, internal working
				papers, and any other records or documents that are necessary to form the basis
				for or demonstrate the calculation of the performance or rate of return of any
				or all managed accounts or securities recommendations in any notice, circular,
				advertisement, newspaper article, investment letter, bulletin or other
				communication that the investment adviser circulates or distributes, directly
				or indirectly, to ten (10) or more persons (other than persons connected with
				such investment adviser); provided, however, that, with respect to the
				performance of managed accounts, the retention of all account statements, if
				they reflect all debits, credits, and other transactions in a client's account
				for the period of the statement, and all worksheets necessary to demonstrate
				the calculation of the performance or rate of return of all managed accounts
				shall be deemed to satisfy the requirements of this subsection.