Senate Bill 1866 amends various sections of the Tennessee Code Annotated related to the regulation of investment advisers and broker-dealers by the Department of Commerce and Insurance. Notably, it introduces a new exemption for certain individuals from the definition of an investment adviser or investment adviser representative, as determined by rules adopted by the commissioner. Additionally, the bill modifies the language regarding private rights of action, establishing a five-year limitation for initiating such actions after a violation, or two years after the discovery of the violation, whichever is sooner.

The bill also revises the requirements for broker-dealers and agents regarding customer dispute information expungement from the Central Registration Depository (CRD) system. It mandates that these individuals provide written notice to the department at least 60 days before filing for expungement and requires them to name the department as a party in the proceedings, although the commissioner may waive this requirement at their discretion. Furthermore, the bill deletes an entire part of Title 49, Chapter 4, Part 1, streamlining the regulatory framework. The act is set to take effect upon becoming law.

Statutes affected:
Introduced: 48-1-109(c), 48-1-109, 48-1-111(d)(4), 48-1-111, 48-1-119(b), 48-1-119, 48-1-122(h), 48-1-122, 48-1-128