[§485A-408] Termination of employment or association of agent and investment adviser representative; transfer of employment or association.

573 words·~3 min read·/hi/485a-408

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

(a)If an agent registered under this chapter terminates employment or association with a broker-dealer or issuer ; or if an investment adviser representative registered under this chapter terminates employment or association with an investment adviser or federal covered investment adviser ; or if either registrant terminates activities that require registration as an agent or investment adviser representative, the broker-dealer, issuer, investment adviser, or federal covered investment adviser shall promptly file a notice of termination with the commissioner. If the registrant learns that the broker-dealer, issuer, investment adviser, or federal covered investment adviser has not filed the notice, the registrant shall promptly notify the broker-dealer, issuer, investment adviser or federal covered investment adviser, to do so.

(b)If an agent registered under this chapter terminates employment or association with a broker-dealer registered under this chapter and begins employment or association with another broker-dealer registered under this chapter; or if an investment adviser representative registered under this chapter terminates employment or association with an investment adviser registered under this chapter or a federal covered investment adviser that has filed a notice under section 485A-405 and begins employment by or association with another investment adviser registered under this chapter or a federal covered investment adviser that has filed a notice under section 485A-405; then upon the filing by or on behalf of the registrant, within thirty days after the termination, of an application for registration that complies with the requirement of section 485A-406(a) and payment of the filing fee required under section 485A-410, the registration of the agent or investment adviser representative shall be:

(1)Immediately effective as of the date of the completed filing, if the agent's Central Registration Depository record or successor record or the investment adviser representative's Investment Adviser Registration Depository record or successor record does not contain any new or amended disciplinary actions or proceedings within the previous twelve months; or

(2)Temporarily effective as of the date of the completed filing, if the agent's Central Registration Depository record or successor record or the investment adviser representative's Investment Adviser Registration Depository record or successor record contains any new or amended disciplinary actions or proceedings within the preceding twelve months.

(c)The commissioner may withdraw a temporary registration if there are or were grounds for discipline as specified in section 485A-412 and the commissioner does so within thirty days after the filing of the application. If the commissioner does not withdraw the temporary registration within the thirty-day period, registration becomes automatically effective on the thirty-first day after filing.

(d)The commissioner may prevent the effectiveness of a transfer of an agent or investment adviser representative under subsection (b)(1) or

(2)based on the public interest and the protection of investors.

(e)If the commissioner determines that a registrant or applicant for registration is no longer in existence or has ceased to act as a broker-dealer, agent, investment adviser, or investment adviser representative, or is the subject of an adjudication of incapacity or is subject to the control of a committee, conservator, or guardian, or cannot reasonably be located, a rule adopted or order issued under this chapter may require the registration be canceled or terminated or the application denied. The commissioner may reinstate a canceled or terminated registration, with or without hearing, and may make the registration retroactive. [L 2006, c 229, pt of §1]