New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 6 - INVESTMENT ADVISERS AND INVESTMENT ADVISER REPRESENTATIVES RECORDS › Section 12.11.6.8 - RECORDKEEPING REQUIREMENTS FOR INVESTMENT ADVISERS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Recordkeeping requirements for all
				investment advisers
. Every investment adviser registered or required to
				be registered under the New Mexico Uniform Securities Act shall make and keep
				true, accurate and current the following books, ledgers and records:
(1) 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;
(2) general and auxiliary ledgers, or other
				comparable records, reflecting asset, liability, reserve, capital, income and
				expense accounts;
(3) a record of
				the investment adviser's securities transactions in accordance with the
				requirements of Subsection A of 12.11.6.9 NMAC;
(4) all checkbooks, bank statements, canceled
				checks and cash reconciliations of the investment adviser;
(5) all bills or statements, or copies of
				bills or statements, paid or unpaid, relating to the investment adviser's
				business as an investment adviser;
(6) 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 paragraph, "financial statements"
				shall mean a balance sheet prepared in accordance with generally accepted
				accounting principles, an income statement, a cash flow statement and a net
				worth computation, if applicable, as required by 12.11.5.23 NMAC;
(7) records of the investment adviser's
				written communications in accordance with the requirements of Subsection B of
				12.11.6.9 NMAC;
(8) a list or other
				record of all accounts which identifies the accounts in which the investment
				adviser is vested with any discretionary power with respect to the funds,
				securities or transactions of any client;
(9) a copy of all powers of attorney and
				other evidence of the granting of any discretionary authority by any client to
				the investment adviser;
(10) a copy
				in writing of each agreement entered into by the investment adviser with any
				client and all other written agreements otherwise relating to the investment
				adviser's business as an investment adviser;
(11) a file containing a copy of each notice,
				circular, advertisement, newspaper article, investment letter, bulletin or
				other communication including by 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; if the notice,
				circular, advertisement, newspaper article, investment letter, bulletin or
				other communication including by electronic media recommends the purchase or
				sale of a specific security and does not state the reasons for the
				recommendation, the investment adviser shall retain a memorandum documenting
				its reasons for the recommendation;
(12) records of transactions in securities in
				which the investment adviser or an affiliated person has a beneficial ownership
				interest in accordance with the requirements of Subsection C of 12.11.6.9
				NMAC;
(13) 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 12.11.5.12 NMAC, 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;
(14) 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 all
				managed accounts or securities recommendations in any notice, circular,
				advertisement, newspaper article, investment letter, bulletin or other
				communication including but not limited to distribution by print and electronic
				media that the investment adviser circulates or distributes, directly or
				indirectly, to two or more persons, other than persons employed by or
				contracted with the investment adviser; however, 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 paragraph;
(15) a file containing a copy of all written
				communications 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;
(16) written information about each
				investment advisory client that is the basis for making any recommendation or
				providing any investment advice to such client;
(17) 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;
(18) 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; the file shall at a minimum contain applications, amendments,
				renewal filings, correspondence and any other applicable state, federal agency
				or self-regulatory organization documents issued or received by the registrant
				or its investment adviser representatives; and
(19) a record of the investment adviser's
				privacy policies, all privacy notices sent to consumers or customers and the
				date such notices were sent.