44-3151. Licensure required; exclusion; violation; classification

309 words·~1 min read·/az/title-44/44-3151

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. A person shall not transact business in this state as an investment adviser or investment adviser representative unless any of the following applies:

1. The person is licensed under this article.

2. The person is a federal covered adviser and has made a notice filing under this article.

3. The person is exempt from licensure.

4. The person is a federal covered adviser and is not subject to the notice filing requirements prescribed in section 44-3153.

B. The licensure requirements of this article do not apply to any federal covered adviser or a person that is excluded from the definition of an investment adviser under section 202(a)(11) of the investment advisers act of 1940.

C. An investment adviser that is required to be licensed shall not employ an investment adviser representative unless the investment adviser representative is licensed under this article. The licensure of an investment adviser representative is not effective during any period of time that the investment adviser representative is not employed by a licensed investment adviser or by a federal covered adviser that has made a notice filing pursuant to section 44-3153, subsection E.

A licensed investment adviser shall promptly notify the commission when an investment adviser representative begins or terminates employment with the investment adviser by filing a completed form U-4 or form U-5 or any other form as the director may designate.

D. An investment adviser representative shall not conduct business on behalf of a federal covered adviser unless that investment adviser representative is licensed under this article. A federal covered adviser shall notify the commission if any investment adviser representative begins or terminates employment with that federal covered adviser by filing a completed form U-4, form U-5 or any other form the director designates for that purpose.

E. A person who knowingly violates this section is guilty of a class 1 misdemeanor.