§ 26-1001. Stock investment advisory or principal underwriter.  


Latest version.
  • (a)

    Every person engaged within the City in the business of acting as an investment adviser for any investment company registered under the Investment Company Act of 1940, 15 USC 80a-1 et seq., shall pay a license fee as set forth in Appendix A to this Code or a license tax equal to $0.36 per $100.00 of the gross receipts of its investment advisory business, as provided in Section 26-871.

    (b)

    Every person engaged within the City in the business of acting as a principal underwriter for an investment company registered under the Investment Company Act of 1940 shall pay a license fee as set forth in Appendix A to this Code or a license tax, as provided in Section 26-871, equal to $0.36 per $100.00 of the gross sales charges imposed by such principal underwriter on its execution of purchase orders for shares in any investment company or for investment company contractual plans for such shares. In calculating gross sales charges under this subsection, deductions shall be allowed a principal underwriter for concessions retained by securities dealers who have originated any purchase order.

    (c)

    The terms "investment adviser" and "principal underwriter" used in Subsection (a) or (b) of this section shall have the meaning given those terms in Section 2(a) of the Investment Company Act of 1940, 15 USC 80a-2(a), and any person claiming to be engaged in any such business shall furnish the City, upon request, such documents as the City may reasonably request concerning the character of the business being conducted.

    (d)

    Every person engaged within the City in the business of rendering investment advice to or acting as principal underwriter for an investment company registered under the Investment Company Act of 1940 shall be subject only to the license taxes set forth in Subsections (a) and (b) of this section in lieu of all other license taxes otherwise imposed under any other section of this Code or City ordinances.

    (e)

    Dividend disbursing, dividend reinvestment, transfer of stock, mailing and similar services, when provided by any person who has been issued the license required by this section for engaging in business as investment adviser, as principal underwriter, or as investment adviser and principal underwriter for any investment company registered under the Investment Company Act of 1940 shall be deemed to be rendered in the regular conduct of the business. However, such sums as may be collected by such investment adviser or principal underwriter for such services (dividend disbursing, etc.) shall be excluded in determining the gross proceeds for the purpose of computing the license tax to be paid.

    (Code 1993, § 27-442; Code 2004, § 98-775)

(Code 1993, § 27-442; Code 2004, § 98-775)