Investment Advisers Act Amendments

(Reported to Senate from the Committee on Banking, Housing and Urban Affairs with amendment, S. Rept. 94-910)

Investment Advisers Act Amendments - Prohibits any investment adviser, under the Investment Advisers Act of 1940, unless exempt from registration thereunder, from making use of the mails or interstate commerce unless such adviser and all natural persons associated with him passes an appropriate test or examination or meets appropriate training or experience standards, and meets standards relating to contractual capacity.

Requires the Securities and Exchange Commission to consult with the States prior to adopting any rules prescribing tests pursuant to this Act, in order to avoid duplicative testing.

Provides that no investment adviser who is authorized to exercise investment discretion, under the Securities Exchange Act of 1934, with respect to an account, who has access to securities or funds of a client, or who is an investment adviser of an investment company, under the Investment Advisers Act, shall make use of the mails or interstate commerce in connection with his business as an investment adviser in contravention of such rules and regulations as the Commission shall prescribe in the public interest or for the protection of investors.

Defines "person associated with an investment adviser," under such Act.

Directs the Commission to study the extent to which persons not included in the definition of "investment adviser," under such Act, or specifically excluded therefrom, engage in activities which are the same as or similar to those engaged in by investment advisers, and whether the omission or exclusion of such persons from the definition is consistent with the protection of investors.

Requires the Commission to study: (1) whether and to what extent the protection of investors would be facilitated by establishing one or more self-regulatory organizations which would be registered with the Commission and subject to its oversight; and (2) whether and to what extent regulations of investment advisers under Federal and State law impose unnecessarily duplicative regulation, and whether it is feasible to reduce or eliminate undue burdens caused by such duplicative regulation.