HAR §16-39-442. Books and records

(a) Every investment adviser registered or required to be registered under chapter 485A, HRS, and this chapter shall make and keep true, accurate, and current books and records in compliance with the Investment Advisers Act, 17 CFR section 275.204-2. In addition, investment advisers who have custody, as that term is defined in section 16-39-436, of client funds or securities, shall keep all records and evidence of compliance required by section 16-39-436. (b) An investment adviser subject to subsection (a), before ceasing to conduct or discontinuing business as an investment adviser shall arrange for and be responsible for the preservation of the books and records required to be maintained and preserved under this section for the remainder of the period specified in this section, and shall notify the commissioner in writing of the exact address where such books and records shall be maintained during such period. (c) To the extent that the SEC promulgates changes to the rules of the Investment Advisers Act referenced in subsection (a), investment advisers in compliance with such rules as amended shall not be subject to enforcement action by the commissioner for §16-39-442 39-94 violation of this section to the extent that the violation results solely from the investment adviser's compliance with the amended rule. (d) Every investment adviser that has its principal place of business in a state other than this State shall be exempt from the requirements of this section; provided the investment adviser is licensed in such state and is in compliance with the state's recordkeeping requirements. [Eff 6/30/08; comp 11/18/23] (Auth: HRS §§485A-406, 485A-411, 485A-606) (Imp: §485A-411) D. Investment Adviser Representatives