Section 45.55.030. Registration requirements; referrals.

   (a) A person may not transact business in this state as a broker-dealer or agent unless the person is registered under this chapter.
   (b) A broker-dealer or issuer may not employ an agent unless the agent is registered. The registration of an agent is not effective during a period when the agent is not associated with a particular broker-dealer registered under this chapter or a particular issuer. When an agent begins or terminates a connection with a broker-dealer or issuer, or begins or terminates those activities which make the person an agent, the agent as well as the broker-dealer or issuer shall promptly notify the administrator.
   (c) A person may not transact business in this state as a state investment adviser or an investment adviser representative unless
        (1) the person is registered as required under this chapter; or
        (2) the person does not have a place of business in this state and
             (A) the person's only clients in this state are investment companies as defined in 15 U.S.C. 80a-3 (Investment Company Act of 1940), other state investment advisers, federal covered advisers, broker-dealers, banks, trust companies, savings and loan associations, insurance companies, employee benefit plans with assets of not less than $1,000,000, governmental agencies or instrumentalities whether acting for themselves or as trustees with investment control, or other institutional investors that are designated by regulation or order of the administrator; or
             (B) during the preceding 12 months, the person has not had more than five clients who are residents of this state other than those specified in (A) of this paragraph; in this subparagraph, the number of the person's clients shall be determined under 17 C.F.R. 275.203(b)(3)-1 and 17 C.F.R. 275.222-2, as those regulations exist on or after October 1, 1999.
   (d) A registration or notice filing expires one year from its effective date unless renewed earlier.
   (e) Except with respect to a federal covered adviser whose only clients are those described in (c)(2) of this section, a federal covered adviser may not conduct an investment advisory business in this state unless the federal covered adviser complies with AS 45.55.040(h).
   (f) A person may not be registered concurrently as an agent of more than one broker-dealer or issuer. The administrator may waive this restriction if the administrator determines that the waiver would not interfere with effective supervision of the agent by the broker-dealer or issuer and the waiver is in the public interest.
   (g) A person who is registered or required to be registered as a state investment adviser under this chapter may not employ an investment adviser representative who provides advisory services in or emanating from this state unless the investment adviser representative is registered under this chapter or is exempt from registration, except that the registration of the investment adviser representative is effective only when the representative is employed by a state investment adviser registered under this chapter.
   (h) A federal covered adviser who has filed notice under this chapter may not employ, supervise, or associate with an investment adviser representative having a place of business located in this state unless the investment adviser representative is registered under this chapter or is exempt from registration, except that the registration of the investment adviser representative is effective only when the representative is employed by a federal covered adviser.
   (i) If an investment adviser representative terminates employment with a state investment adviser or federal covered adviser, the state investment adviser or federal covered adviser shall promptly notify the administrator.
   (j) A registered broker-dealer or agent is not considered to be soliciting, offering, or negotiating for the sale of or selling advisory services if the registered broker-dealer or agent refers, as part of a wrap fee, asset allocation, or market-timing program, customers who are residents of this state to a state investment adviser or federal covered adviser that is registered or has made a notice filing in this state.

Authorities

12.62.400;14.43.148;25.27.244;37.23.050;45.55.040;45.55.050;45.55.170;45.55.175;45.55.925;45.55.930

Notes

Recent Bills that will modify this

HB 194 AK SECURITIES ACT; PENALTIES; CRT. RULES
SB 108 AK SECURITIES ACT; PENALTIES; CRT. RULES

Implemented As

3 AAC 08.007
3 AAC 08.050
3 AAC 08.053
3 AAC 08.725

References

3 AAC 08.042
3 AAC 08.055
3 AAC 08.062
3 AAC 08.087
3 AAC 08.610
3 AAC 08.710
AS 12.62.400 National criminal history record checks for employment, licensing, and other noncriminal justice purposes.
AS 14.43.148 Nonrenewal of license.
AS 25.27.244 Adverse action against delinquent obligor's occupational license.
AS 37.23.050 Investment management.
AS 45.55.040 Registration procedure; notice filing.
AS 45.55.050 Post-registration provisions.
AS 45.55.170 Unlawful representations concerning registration or exemption.
AS 45.55.175 Exemption for certain security sales and offerings.
AS 45.55.925 Criminal penalties.
AS 45.55.930 Civil liability to buyers.

History

(Sec. 201 ch 198 SLA 1959; am Sec. 66 ch 37 SLA 1986; am Sec. 10 - 12 ch 76 SLA 1999)