---
kind: "section"
citation: "15 U.S.C. § 80b–3a"
title: "15"
title_heading: "Commerce and Trade"
number: "80b–3a"
heading: "State and Federal responsibilities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/80b-3a"
units:
  - "Chapter 2D — Investment Companies and Advisers"
  - "Subchapter II — Investment Advisers"
---

# §80b–3a. State and Federal responsibilities

- (a) **Advisers subject to State authorities—**
  - (1) **In general—** No [investment adviser](/usc/15/80b–2.md?p=a-11) that is regulated or required to be regulated as an [investment adviser](/usc/15/80b–2.md?p=a-11) in the [State](/usc/15/80a–2.md?p=a-39) in which it maintains its principal office and place of business shall register under [section 80b–3 of this title](/usc/15/80b–3.md), unless the [investment adviser](/usc/15/80b–2.md?p=a-11)—
    - (A) has assets under management of not less than $25,000,000, or such higher amount as the [Commission](/usc/15/80a–2.md?p=a-7) may, by rule, deem appropriate in accordance with the purposes of this subchapter; or
    - (B) is an adviser to an investment [company](/usc/15/80a–2.md?p=a-8) registered under subchapter I of this chapter.
  - (2) **Treatment of mid-sized investment advisers—**
    - (A) **In general—** No [investment adviser](/usc/15/80b–2.md?p=a-11) described in [subparagraph (B)](#a-2-B) shall register under [section 80b–3 of this title](/usc/15/80b–3.md), unless the [investment adviser](/usc/15/80b–2.md?p=a-11) is an adviser to an investment [company](/usc/15/80a–2.md?p=a-8) registered under the Investment Company Act of 1940 [[15 U.S.C. 80a–1](/usc/15/80a–1.md) et seq.], or a [company](/usc/15/80a–2.md?p=a-8) which has elected to be a [business development company](/usc/15/80a–2.md?p=a-48) pursuant to section 54 of the Investment Company Act of 1940 [[15 U.S.C. 80a–53](/usc/15/80a–53.md)], and has not withdrawn the election, except that, if by effect of this paragraph an [investment adviser](/usc/15/80b–2.md?p=a-11) would be required to register with 15 or more [States](/usc/15/80a–2.md?p=a-39), then the adviser may register under [section 80b–3 of this title](/usc/15/80b–3.md).
    - (B) **Covered persons—** An [investment adviser](/usc/15/80b–2.md?p=a-11) described in this subparagraph is an [investment adviser](/usc/15/80b–2.md?p=a-11) that—
      - (i) is required to be registered as an [investment adviser](/usc/15/80b–2.md?p=a-11) with the [securities](/usc/15/80a–2.md?p=a-36) commissioner (or any agency or office performing like functions) of the [State](/usc/15/80a–2.md?p=a-39) in which it maintains its principal office and place of business and, if registered, would be subject to examination as an [investment adviser](/usc/15/80b–2.md?p=a-11) by any such commissioner, agency, or office; and
      - (ii) has assets under management between—
        - (I) the amount specified under [subparagraph (A)](#a-1-A) of paragraph (1), as such amount may have been adjusted by the [Commission](/usc/15/80a–2.md?p=a-7) pursuant to that subparagraph; and
        - (II) $100,000,000, or such higher amount as the [Commission](/usc/15/80a–2.md?p=a-7) may, by rule, deem appropriate in accordance with the purposes of this subchapter.
  - (3) **“Assets under management” defined—** For purposes of this subsection, the term “assets under management” means the [securities](/usc/15/80a–2.md?p=a-36) portfolios with respect to which an [investment adviser](/usc/15/80b–2.md?p=a-11) provides continuous and regular supervisory or management services.
- (b) **Advisers subject to Commission authority—**
  - (1) **In general—** 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) or [supervised person](/usc/15/80b–2.md?p=a-25) of an [investment adviser](/usc/15/80b–2.md?p=a-11) shall apply to any [person](/usc/15/80a–2.md?p=a-28)—
    - (A) that is registered under [section 80b–3 of this title](/usc/15/80b–3.md) as an [investment adviser](/usc/15/80b–2.md?p=a-11), or that is a [supervised person](/usc/15/80b–2.md?p=a-25) of such [person](/usc/15/80a–2.md?p=a-28), except that a [State](/usc/15/80a–2.md?p=a-39) may license, register, or otherwise qualify any [investment adviser](/usc/15/80b–2.md?p=a-11) representative who has a place of business located within that [State](/usc/15/80a–2.md?p=a-39);
    - (B) that is not registered under [section 80b–3 of this title](/usc/15/80b–3.md) because that [person](/usc/15/80a–2.md?p=a-28) is excepted from the definition of an [investment adviser](/usc/15/80b–2.md?p=a-11) under [section 80b–2(a)(11) of this title](/usc/15/80b–2.md?p=a-11); or[^1]
    - (C) that is not registered under [section 80b–3 of this title](/usc/15/80b–3.md) because that [person](/usc/15/80a–2.md?p=a-28) is exempt from registration as provided in [subsection (b)(7)](/usc/15/80b–3.md?p=b-7) of such section, or is a [supervised person](/usc/15/80b–2.md?p=a-25) of such [person](/usc/15/80a–2.md?p=a-28); or
    - (D) that is not registered under [section 80b–3 of this title](/usc/15/80b–3.md) because that [person](/usc/15/80a–2.md?p=a-28) is exempt from registration as provided in [subsection (b)(8)](/usc/15/80b–3.md?p=b-8) of such section, or is a [supervised person](/usc/15/80b–2.md?p=a-25) of such [person](/usc/15/80a–2.md?p=a-28).
  - (2) **Limitation—** Nothing in this subsection shall prohibit the [securities](/usc/15/80a–2.md?p=a-36) [commission](/usc/15/80a–2.md?p=a-7) (or any agency or office performing like functions) of any [State](/usc/15/80a–2.md?p=a-39) from investigating and bringing enforcement actions with respect to fraud or deceit against an [investment adviser](/usc/15/80b–2.md?p=a-11) or [person associated with an investment adviser](/usc/15/80b–2.md?p=a-17).
- (c) **Exemptions—** Notwithstanding [subsection (a)](#a), the [Commission](/usc/15/80a–2.md?p=a-7), by rule or regulation upon its own motion, or by order upon application, may permit the registration with the [Commission](/usc/15/80a–2.md?p=a-7) of any [person](/usc/15/80a–2.md?p=a-28) or class of [persons](/usc/15/80a–2.md?p=a-28) to which the application of [subsection (a)](#a) would be unfair, a burden on [interstate commerce](/usc/15/80a–2.md?p=a-18), or otherwise inconsistent with the purposes of this section.
- (d) **State assistance—** Upon request 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), the [Commission](/usc/15/80a–2.md?p=a-7) may provide such training, technical assistance, or other reasonable assistance in connection with the regulation of [investment advisers](/usc/15/80b–2.md?p=a-11) by the [State](/usc/15/80a–2.md?p=a-39).

## Footnotes

[^1]: So in original. The word “or” probably should not appear.

## Source credit

(Aug. 22, 1940, ch. 686, title II, § 203A, as added Pub. L. 104–290, title III, § 303(a), Oct. 11, 1996, 110 Stat. 3437; amended Pub. L. 109–290, § 7(b)(1), Sept. 29, 2006, 120 Stat. 1321; Pub. L. 111–203, title IV, § 410, July 21, 2010, 124 Stat. 1576; Pub. L. 114–94, div. G, title LXXIV, § 74003, Dec. 4, 2015, 129 Stat. 1786; Pub. L. 115–417, § 3, Jan. 3, 2019, 132 Stat. 5439.)

## Notes

### Editorial Notes

### References in Text

The Investment Company Act of 1940, referred to in subsec. (a)(2)(A), is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, which is classified generally to subchapter I (§ 80a–1 et seq.) of this chapter. For complete classification of this Act to the Code, see section 80a–51 of this title and Tables.

### Amendments

2019—Subsec. (b)(1)(D). Pub. L. 115–417 added subpar. (D).

2015—Subsec. (b)(1)(C). Pub. L. 114–94 added subpar. (C).

2010—Subsec. (a)(2), (3). Pub. L. 111–203 added par. (2) and redesignated former par. (2) as (3).

2006—Subsecs. (d), (e). Pub. L. 109–290 redesignated subsec. (e) as (d) and struck out heading and text of former subsec. (d). Text read as follows: “The Commission may, by rule, require an investment adviser—

“(1) to file with the Commission any fee, application, report, or notice required by this subchapter or by the rules issued under this subchapter through any entity designated by the Commission for that purpose; and

“(2) to pay the reasonable costs associated with such filing.”

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective 1 year after July 21, 2010, except that any investment adviser may, at the discretion of the investment adviser, register with the Commission under the Investment Advisers Act of 1940 during that 1-year period, subject to the rules of the Commission, and except as otherwise provided, see section 419 of Pub. L. 111–203, set out as a note under section 80b–2 of this title.

### Effective Date

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

### Continued State Authority

Pub. L. 104–290, title III, § 307, Oct. 11, 1996, 110 Stat. 3440, provided that: Preservation of Filing Requirements.—Nothing in this title [see Short Title of 1996 Amendment note set out under section 80b–20 of this title] or any amendment made by this title prohibits the securities commission (or any agency or office performing like functions) of any State from requiring the filing of any documents filed with the Commission pursuant to the securities laws solely for notice purposes, together with a consent to service of process and any required fee. Preservation of Fees.—Until otherwise provided by law, rule, regulation, or order, or other administrative action of any State, or any political subdivision thereof, adopted after the date of enactment of this Act [Oct. 11, 1996], filing, registration, or licensing fees shall, notwithstanding the amendments made by this title, continue to be paid in amounts determined pursuant to the law, rule, regulation, or order, or other administrative action as in effect on the day before such date of enactment.Availability of Preemption Contingent on Payment of Fees.— In general.—During the period beginning on the date of enactment of this Act [Oct. 11, 1996] and ending 3 years after that date of enactment, the securities commission (or any agency or office performing like functions) of any State may require registration of any investment adviser that fails or refuses to pay the fees required by subsection (b) in or to such State, notwithstanding the limitations on the laws, rules, regulations, or orders, or other administrative actions of any State, or any political subdivision thereof, contained in subsection (a), if the laws of such State require registration of investment advisers. Delays.—For purposes of this subsection, delays in payment of fees or underpayments of fees that are promptly remedied in accordance with the applicable laws, rules, regulations, or orders, or other administrative actions of the relevant State shall not constitute a failure or refusal to pay fees.”