Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.10 - SECURITIES DEPARTMENT › Subchapter 6.10.5 - Broker-Dealers and Investment Advisers › Rule 6.10.510 - INVESTMENT ADVISER BOOKS AND RECORDS

Current through Register Vol. 13, July 5, 2024
(1)
				Except as otherwise provided in (5), an investment adviser registered or
				required to be registered under the Securities Act of Montana must make and
				keep true, accurate, and current the following books, ledgers, and records:
(a) those books and records required to be
				maintained and preserved in compliance with Rule 204-2(a)(1)-(5), (7), (9),
				(10), (12), (13), (15), and (16) of the Investment Advisers Act of 1940 (
				17 CFR
				275.204-2 (1998)), adopted and incorporated
				by reference, notwithstanding the fact that the investment adviser is not
				registered or required to be registered under the Investment Advisers Act of
				1940. Rule 204-2 establishes books and records maintenance requirements
				pertaining to the conduct of business as an investment adviser. Copies of these
				rules may be obtained from the Commissioner of Securities, 840 Helena Avenue,
				Helena, MT 59601;
(b) all trial
				balances, financial statements prepared in accordance with generally accepted
				accounting principles, and internal audit working papers relating to the
				investment adviser's business as an investment adviser. For purposes of this
				rule, "financial statements" means balance sheets, income statements, cash flow
				statements and net worth computations as required by ARM 6.6.140;
(c) a list or other record of all accounts
				with respect to the funds, securities, or transactions of any client;
(d) a file containing a copy of each record
				required by Rule 204-2(a)(11) of the Investment Advisers Act of 1940 (
				17 CFR
				275.204-2 (a)(11) (1998)), including any
				communication by electronic media that the investments adviser circulates or
				distributes directly or indirectly to two or more persons, other than persons
				connected with the investment adviser;
(e) a copy of each written statement and each
				amendment or revision given or sent to any client or prospective client of the
				investment adviser in accordance with the provisions of
				30-10-201(12)(b),
				MCA, and a record of the dates that each written statement, and each amendment
				or revision was given or offered to be given to any client or prospective
				client who subsequently becomes a client;
(f) for each client that was obtained by the
				adviser by means of a solicitor to whom a cash fee was paid by the adviser,
				records required by Rule 206(4)-3 of the Investment Advisers Act of 1940 ( 17
				CFR 275.206 (4)-3 (1998)), which is adopted and incorporated by this reference,
				notwithstanding the fact that the investment adviser is not registered, or
				required to be registered, under the Investment Advisers Act of 1940;
(g) all records required by rule 204-2(a)(16)
				of the Investment Advisers Act of 1940 include, but are not limited to,
				electronic media that the investment adviser circulates or distributes,
				directly or indirectly, to two or more persons (other than persons connected
				with the investment adviser);
(h) a
				file containing a copy of all written communication received or sent regarding
				any litigation involving the investment adviser or any investment adviser
				representative or employee, and regarding any written customer or client
				complaint;
(i) written information
				about each investment advisory client that is the basis for making any
				recommendation or providing any investment advice to such client;
(j) written procedures to supervise the
				activities of employees and investment adviser representatives that are
				reasonably designed to achieve compliance with applicable securities laws and
				regulations; and
(k) a file
				containing a copy of each document (other than any notices of general
				dissemination) that was filed with, or received from, any state or federal
				agency or self regulatory organization, and that pertains to the registrant or
				its investment adviser representatives which file should contain, but is not
				limited to, all applications amendments, renewal filings, and
				correspondence.