§ 1-303. Registration and notice filing procedure
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 70 P.S. SecuritiesEffective: August 11, 2014
Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 70 P.S. Securities (Refs & Annos)
Chapter 1.5. Pennsylvania Securities Act of 1972 (Refs & Annos)
Part III. Registration of Broker-Dealers, Agents, Investment Advisers, Investment Adviser Representatives and Notice Filings by Federally Covered Advisers (Refs & Annos)
Effective: August 11, 2014
70 P.S. § 1-303
§ 1-303. Registration and notice filing procedure
(a)(i) Except as provided by clause (iii), any broker-dealer, agent, investment adviser or investment adviser representative may obtain an initial or renewal license by filing an application with the department. The application shall contain such information, and in such detail, as the department by rule requires concerning the applicant's form and place of organization, proposed method of doing business, and financial condition, the qualifications and experience of the applicant, including, in the case of a broker-dealer or investment adviser, the qualifications and experience of any partner, officer, director, or affiliate, or a person occupying a similar status or performing similar functions any injunction or administrative order or conviction referred to in section 305(a)(ii),1 information about affiliates or predecessors of the applicant, and any other matters which the department determines are relevant to the application. If a broker-dealer, agent, investment adviser or investment adviser representative seeks to obtain an initial or renewal license and, in connection therewith, requests a waiver of any requirement imposed under this section or section 3042 or any regulation promulgated thereunder, the department in granting the waiver may impose conditions on or limit the scope of the initial or renewal license.
(ii) If no denial order is in effect and no proceeding is pending under section 305, the registration becomes effective on the forty-fifth day after the filing of the application therefor or any material amendment thereto, or on such earlier date as the department may order. The department is directed to cooperate with other securities administrators and regulatory authorities to simplify and coordinate registration, application and renewal procedures.
(iii) A federally covered adviser shall file with the department, prior to acting as a federally covered adviser in this State, a copy of such documents as have been filed with the Securities and Exchange Commission which the department by regulation may require, together with the fee specified in section 602(d.1).3 This requirement shall not apply to a federally covered adviser that:
(C) Meets the definition of any person described in section 102(j)(i) through (viii), (x) or (xi),4 except a federally covered adviser that is also a broker-dealer registered under section 301,5 that has an individual employed by or associated with such person who meets the definition of investment adviser representative in section 102(j.1)(ii).
(b) A registered broker-dealer or investment adviser may file an application for registration of a successor, whether or not the successor is then in existence, for the unexpired portion of the registrant's term. A federally covered adviser may file a notice filing for a successor, whether or not the successor is then in existence, for the unexpired portion of the notice period. There shall be no filing fee.
(c) The department may by regulation prescribe standards of qualification with respect to training, experience and knowledge of the securities business and provide for an examination, which may be written or oral or both, to be taken by any class of or all applicants, as well as persons who represent or will represent a broker-dealer or an investment adviser, and the department may by order require an examination of a licensed broker-dealer, agent, investment adviser or investment adviser representative for due cause.
(d) The department may by regulation require a minimum capital for registered broker-dealers subject to the limitations of section 15 of the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. § 78o) and establish minimum financial requirements for investment advisers subject to the limitations of section 222 of the Investment Advisers Act of 1940 (54 Stat. 847, 15 U.S.C. § 80b-18a). The department may classify broker-dealers for purposes of such requirements and may establish different requirements for those investment advisers who maintain custody of clients' funds or securities or who have discretionary authority over same and those investment advisers who do not.
(e) The department may by regulation require surety bonds to be posted by any broker-dealer, investment adviser, and any issuer who employs agents subject to registration under section 301 in connection with effecting transactions in any security not exempted by section 202(e), (f) or (g)6 or effecting securities transactions not exempted by section 203(c), (g), (k), (l) or (m)7 in any amount the department may prescribe, subject to the limitations of section 15 of the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. § 78o) for broker-dealers and section 222 of the Investment Advisers Act of 1940 for investment advisers and may determine their conditions. All bonds required shall provide for suit thereon by injured customers, clients or purchasers, but no bond may be required of any registered broker-dealer or investment adviser whose net capital or minimum financial requirements exceeds the amount prescribed by regulation for this purpose. Such bond, unless cancelled as provided herein, shall be in effect during the entire period that a registration is in effect. Every bond shall contain a provision that such bond is not cancellable, except on thirty-days prior written notice to the person by whom the bond was posted and the department, provided that such cancellation shall not affect any liability incurred or accrued prior to the effective date of such cancellation.
Credits
1972, Dec. 5, P.L. 1280, No. 284, § 303, effective Jan. 1, 1973. Amended 1981, March 25, P.L. 1, No. 1, § 1, imd. effective; 1990, Dec. 18, P.L. 755, No. 190, § 4, effective in 60 days; 1998, Nov. 24, P.L. 829, No. 109, § 15, effective in 60 days; 2002, July 4, P.L. 721, No. 108, § 7, effective in 60 days; 2014, June 10, P.L. 678, No. 52, § 12, effective in 60 days [Aug. 11, 2014].
Footnotes
70 P.S. § 1-305.
70 P.S. § 1-304.
70 P.S. § 1-602.
70 P.S. § 1-102.
70 P.S. § 1-301.
70 P.S. § 1-202.
70 P.S. § 1-203.
70 P.S. § 1-303, PA ST 70 P.S. § 1-303
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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