§ 7-11-206 - Licensing and notice fees; and filing requirements for federal covered advisers.
SECTION 7-11-206
§ 7-11-206 Licensing and notice fees; andfiling requirements for federal covered advisers. – (a) A federal covered adviser or an applicant for licensing shall pay an annualfee as follows:
(1) Broker dealer three hundred dollars ($300) and for eachbranch office one hundred dollars ($100);
(2) Sales representative sixty dollars ($60.00);
(3) Investment adviser three hundred dollars ($300);
(4) Investment adviser representative sixty dollars ($60.00);and
(5) Federal covered adviser two hundred and fifty dollars($250).
(b) Except with respect to federal covered advisers whoseonly clients are those described in § 7-11-204(1)(i), a federal coveredadviser shall file any documents filed with the U.S. Securities and ExchangeCommission with the director, that the director requires by rule or order,together with any notice fee and consent to service of process that thedirector requires by rule or order. The notice filings under this subsectionexpire annually on December 31, unless renewed.
(c) A notice filing under this section is effective fromreceipt until the end of the calendar year. A notice filing may be renewed byfiling any documents that have been filed with the U.S. Securities and ExchangeCommission as required by the director along with a renewal fee of two hundredfifty dollars ($250).
(d) A federal covered adviser may terminate a notice filingupon providing the director notice of the termination, which is effective uponreceipt by the director.
(e) Notwithstanding the provisions of this section, untilOctober 11, 1999, the director may require the registration as an investmentadviser of any federal covered adviser who has failed to promptly pay the feesrequired by this section after written notification from the director of thenon-payment or underpayment of the fees. A federal covered adviser isconsidered to have promptly paid the fees if they are remitted to the directorwithin fifteen (15) days following the federal covered adviser's receipt ofwritten notice from the director.
(f) For purposes of this section, "branch office" means anylocation where one or more associated persons of a broker-dealer regularlyconducts the business of effecting any transactions in, or inducing orattempting to induce the purchase or sale of any security, or is held out assuch, excluding:
(1) Any location that is established solely for customerservice and/or back office type functions where no sales activities areconducted and that is not held out to the public as a branch office;
(2) Any location that is the associated person's primaryresidents; provided that:
(i) Only one associated person, or multiple associatedpersons who reside at that location and are members of the same immediatefamily, conduct business at the location;
(ii) The location is not held out to the public as an officeand the associated person does not meet with customers at the location;
(iii) Neither customer funds nor securities are handled atthat location;
(iv) The associated person is assigned to a designated branchoffice, and such designated branch office is reflected on all business cards,stationery, advertisements and other communications to the public by suchassociated person;
(v) The associated person's correspondence and communicationswith the public are subject to the firm's supervision in accordance with Rule3010 of the Financial Industry Regulatory Authority;
(vi) Electronic communications are made through thebroker-dealer's electronic system;
(vii) All orders are entered through the designated branchoffice or an electronic system established by the broker-dealer that isreviewable at the branch office;
(viii) Written supervisory procedures pertaining tosupervision of sales activities conducted at the residence are maintained bythe broker-dealer; and
(ix) A list of the residence locations is maintained by thebroker-dealer;
(3) Any location, other than a primary residence, that isused for securities business for less than thirty (30) business days in any onecalendar year, provided the broker-dealer complies with the provisions ofparagraph (f)(2)(i) through (ix) above;
(4) Any office of convenience, where associated personoccasionally and exclusively by appointment meet with customers, which is notheld out to the public as an office.
(5) Any location that is used primarily to engage innon-securities activities and from which the associated person(s) effects nomore than twenty-five (25) securities transactions in any one calendar year;provided that any advertisement or sales literature identifying such locationalso sets forth the address and telephone number of the location from which theassociated person(s) conducting business at the non-branch locations aredirectly supervised;
(6) The floor of a registered national securities exchangewhere a broker-dealer conducts a direct access business with public customers.
(7) A temporary location established in response to theimplementation of a business continuity plan.
(8) Notwithstanding the exclusions in paragraph (f), anylocation that is responsible for supervising the activities of personsassociated with the broker-dealer at one or more non-branch locations of thebroker-dealer is considered to be a branch office.
(9) The term "business day" as used in subsection 7-11-206(f)shall not include any partial business day provided that the associated personspends at least four (4) hours on such business day at his or her designatedbranch office during the hours that such office is normally open for business.
(10) Where such office of convenience is located on bankpremises, signage necessary to comply with applicable federal and state laws,rules and regulations and applicable rules and regulations of the New YorkStock Exchange, other self-regulatory organizations, and securities and bankingregulators may be displayed and shall not be deemed "holding out" for purposesof subdivision 7-11-206(f)(iv).
(g) If an application is denied or withdrawn or the licenseis revoked, suspended, or withdrawn, the director is not required to refund thefee paid.
(h) The director may issue a stop order suspending theactivities of a federal covered adviser in this state if the directorreasonably believes there has been a violation of the provisions of thissection.