Section 48-11-004 - TRANSITION RULE An investment adviser or investment adviser representative that entered into a contract before the effective date of this Rule and satisfied the conditions of 48 NAC 18, Performance Based Compensation, issued February 25, 1992, in effect on the date that the contract was entered into will be considered to satisfy the conditions of this Rule. This Rule will apply with respect to any natural person or company who is not a party to the contract prior to and becomes a party to the contract after the effective date of these amendments.
004.01 If an investment adviser entered into a contract and satisfied the conditions of this Rule that were in effect when the contract was entered into, the adviser will be considered to satisfy the conditions of this Rule; provided, however, that if a natural person or company who was not a party to the contract becomes a party, including an equity owner of a private investment company advised by the adviser, the conditions of this Rule in effect when the person or company becomes a party to the contract will apply with regard to that person or company.004.02 If an investment adviser was not required to register pursuant to Section 8-1103(2) of the Act and was not registered, Section 8-1102(3)(a) of the Act shall not apply to an advisory contract entered into when the investment adviser was not required to register and was not registered; provided, however, that the investment adviser was in compliance with all rules and regulations regarding performance based compensation in any jurisdiction in which the investment adviser was registered or required to be registered at the time of entering into the advisory contract.004.03 Solely for purposes of this section, a transfer of an equity ownership interest in a private investment company by gift or bequest, or pursuant to an agreement related to a legal separation or divorce, will not cause the transferee to "become a party" to the contract, and will not cause Section 8-1102(3)(a) of the Act to apply to such transferee.48 Neb. Admin. Code, ch. 11, § 004