---
kind: "section"
citation: "15 U.S.C. § 80b–18a"
title: "15"
title_heading: "Commerce and Trade"
number: "80b–18a"
heading: "State regulation of investment advisers"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/80b-18a"
units:
  - "Chapter 2D — Investment Companies and Advisers"
  - "Subchapter II — Investment Advisers"
---

# §80b–18a. State regulation of investment advisers

- (a) **Jurisdiction of State regulators—** Nothing in this subchapter shall affect the jurisdiction of the [securities](/usc/15/80a–2.md?p=a-36) commissioner (or any agency or officer performing like functions) of any [State](/usc/15/80a–2.md?p=a-39) over any [security](/usc/15/80a–2.md?p=a-36) or any [person](/usc/15/80a–2.md?p=a-28) insofar as it does not conflict with the provisions of this subchapter or the rules and regulations thereunder.
- (b) **Dual compliance purposes—** No [State](/usc/15/80a–2.md?p=a-39) may enforce any law or regulation that would require an [investment adviser](/usc/15/80b–2.md?p=a-11) to maintain any books or records in addition to those required under the laws of the [State](/usc/15/80a–2.md?p=a-39) in which it maintains its principal office and place of business, if the [investment adviser](/usc/15/80b–2.md?p=a-11)—
  - (1) is registered or licensed as such in the [State](/usc/15/80a–2.md?p=a-39) in which it maintains its principal office and place of business; and
  - (2) is in compliance with the applicable books and records requirements of the [State](/usc/15/80a–2.md?p=a-39) in which it maintains its principal office and place of business.
- (c) **Limitation on capital and bond requirements—** No [State](/usc/15/80a–2.md?p=a-39) may enforce any law or regulation that would require an [investment adviser](/usc/15/80b–2.md?p=a-11) to maintain a higher minimum net capital or to post any bond in addition to any that is required under the laws of the [State](/usc/15/80a–2.md?p=a-39) in which it maintains its principal office and place of business, if the [investment adviser](/usc/15/80b–2.md?p=a-11)—
  - (1) is registered or licensed as such in the [State](/usc/15/80a–2.md?p=a-39) in which it maintains its principal office and place of business; and
  - (2) is in compliance with the applicable net capital or bonding requirements of the [State](/usc/15/80a–2.md?p=a-39) in which it maintains its principal office and place of business.
- (d) **National de minimis standard—** No law of any [State](/usc/15/80a–2.md?p=a-39) or political subdivision thereof requiring the registration, licensing, or qualification as an [investment adviser](/usc/15/80b–2.md?p=a-11) shall require an [investment adviser](/usc/15/80b–2.md?p=a-11) to register with the [securities](/usc/15/80a–2.md?p=a-36) commissioner of the [State](/usc/15/80a–2.md?p=a-39) (or any agency or officer performing like functions) or to comply with such law (other than any provision thereof prohibiting fraudulent conduct) if the [investment adviser](/usc/15/80b–2.md?p=a-11)—
  - (1) does not have a place of business located within the [State](/usc/15/80a–2.md?p=a-39); and
  - (2) during the preceding 12-month period, has had fewer than 6 clients who are residents of that [State](/usc/15/80a–2.md?p=a-39).

## Source credit

(Aug. 22, 1940, ch. 686, title II, § 222, as added Pub. L. 86–750, § 16, Sept. 13, 1960, 74 Stat. 888; amended Pub. L. 104–290, title III, § 304, Oct. 11, 1996, 110 Stat. 3438; Pub. L. 105–353, title III, § 301(d)(2), Nov. 3, 1998, 112 Stat. 3237; Pub. L. 111–203, title IX, § 985(e)(4), July 21, 2010, 124 Stat. 1935.)

## Notes

### Editorial Notes

### Amendments

2010—Subsecs. (b), (c). Pub. L. 111–203 substituted “principal office and place of business” for “principal place of business” wherever appearing.

1998—Subsec. (b)(2). Pub. L. 105–353 substituted “principal” for “principle”.

1996—Pub. L. 104–290 substituted “regulation” for “control” in section catchline and amended text generally, designating existing provisions as subsec. (a), inserting heading, and adding subsecs. (b) to (d).

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking.

### Effective Date of 1996 Amendment

Amendment by Pub. L. 104–290 effective 270 days after Oct. 11, 1996, see section 308(a) of Pub. L. 104–290, as amended, set out as a note under section 80b–2 of this title.