Sec. A-1. 32 MRSA §10303, as amended by PL 1997, c. 168, §§6 and 7, is further amended to read:
§10303. Investment adviser and investment adviser representative licensing requirement
1. Investment advisers and investment adviser representatives. A person may not act in this State as an investment adviser or an investment adviser representative unless licensed or exempt from licensing under this Act.
2. Employment of suspended and barred persons. It is unlawful for an investment adviser to employ in connection with any of the investment adviser's investment advisory activities in this State any person who is then suspended or barred from association with a broker-dealer or investment adviser by the administrator. No investment adviser may be deemed to have violated this subsection if the investment adviser sustains the burden of proof that the investment adviser did not know, and in the exercise of reasonable care could not have known, of the suspension or bar. Upon request from an investment adviser, and for good cause shown, the administrator, by order, may waive the prohibition of this subsection with respect to a particular person then suspended or barred.
3. Employment of unqualified persons by investment advisers subject to licensing requirements in this State. It is unlawful for an investment adviser licensed or required to be licensed under this Act to employ or contract with an individual as a representative of the investment adviser in this State unless the individual is licensed and has satisfied all applicable examination requirements under this Act. For purposes of this subsection, "representative" means an individual who represents an investment adviser in doing any of the acts that make that person an investment adviser.
4. Employment of unqualified persons by investment advisers exempt under section 10304, subsection 2-A. It is unlawful for an investment adviser exempt from licensing under section 10304, subsection 2-A, to employ or contract with an individual who has a place of business in this State as a representative of the investment adviser unless the individual is licensed and has satisfied all applicable examination requirements under this Act, or unless the investment adviser is otherwise exempt from licensing under this Act. For purposes of this subsection, "representative" means an individual who represents an investment adviser in doing any of the acts that make that person an investment adviser.
Sec. A-2. 32 MRSA §10305, sub-§1, as amended by PL 1989, c. 542, §13, is further amended to read:
1. Consent to service of process. An applicant for licensing as a broker-dealer, sales representative or, investment adviser or investment adviser representative shall file with the administrator or the designee of the administrator an application for licensing, together with a consent to service of process pursuant to section 10704. The application for licensing must contain such information as the administrator determines, by rule, is necessary or appropriate to facilitate the administration of this Act.
Sec. A-3. 32 MRSA §10306, sub-§1, ¶B, as amended by PL 1991, c. 591, Pt. M, §1 and affected by §5, is further amended to read:
B. Sales representative, $40; and
Sec. A-4. 32 MRSA §10306, sub-§1, ¶C, as amended by PL 1993, c. 410, Pt. K, §3, is further amended to read:
C. Investment adviser, $200.; and
Sec. A-5. 32 MRSA §10306, sub-§1, ¶D is enacted to read:
D. Investment adviser representative, $40.
Sec. A-6. 32 MRSA §10306, sub-§2, ¶B, as amended by PL 1991, c. 591, Pt. M, §2 and affected by §5, is further amended to read:
B. Sales representative, $40; and
Sec. A-7. 32 MRSA §10306, sub-§2, ¶C, as amended by PL 1993, c. 410, Pt. K, §4, is further amended to read:
C. Investment adviser, $100.; and
Sec. A-8. 32 MRSA §10306, sub-§2, ¶D is enacted to read:
D. Investment adviser representative, $40.
Sec. A-9. 32 MRSA §10307, sub-§1, ¶C, as amended by PL 1997, c. 168, §12, is further amended to read:
C. Any class of employees of applicants for licensing as to whom the administrator determines that an examination requirement is necessary for the protection of investors; and
Sec. A-10. 32 MRSA §10307, sub-§1, ¶D, as amended by PL 1997, c. 168, §13, is repealed.
Sec. A-11. 32 MRSA §10501, sub-§8-A is enacted to read:
8-A. Investment adviser representative. "Investment adviser representative" means an individual employed by or associated with an investment adviser and who acts on behalf of an investment adviser in performing any of the following activities:
A. Making recommendations or otherwise rendering advice regarding securities to clients;
B. Managing client accounts or portfolios that include or may include securities;
C. Determining, either individually or as a member of the investment advisor's investment committee, which recommendations or advice regarding securities should be given to clients;
D. Soliciting, offering and negotiating for the sale of or selling investment advisory services; or
E. Supervising employees in performing any of the activities described in this subsection.
Sec. A-12. 32 MRSA §10713, sub-§1, ¶A, as enacted by PL 1993, c. 410, Pt. K, §6, is amended to read:
A. All annual renewal license fees for sales representatives and investment adviser representatives received pursuant to this chapter; and
Sec. A-13. Allocation. The following funds are allocated from Other Special Revenue funds to carry out the purposes of this Act.
2001-02 2002-03
PROFESSIONAL AND FINANCIAL REGULATION, DEPARTMENT OF
Bureau of Banking
All Other $20,000 $40,000
Provides funds to support the activities of the Securities Administrator within the Securities Division.
Sec. A-14. Effective date. This Part takes effect January 1, 2002.
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