§ 23-42-301 - Registration required. - Arkansas Statutes

23-42-301. Registration required.

(a) It is unlawful for any person to transact business in this state as a broker-dealer or agent unless he or she is registered under this chapter.

(b) (1) It is unlawful for any registered broker-dealer or issuer to employ an unregistered agent except a nonresident agent who is registered by any other state securities administrator and who effects transactions in this state exclusively with registered broker-dealers.

(2) The registration of an agent is not effective during any period when he or she is not associated with a particular broker-dealer registered under this chapter, or with a particular issuer.

(3) (A) When an agent begins or terminates a connection with a broker-dealer or issuer, or begins or terminates those activities which make him or her an agent, then the broker-dealer or issuer shall promptly notify the Securities Commissioner or the commissioner's designee.

(B) When an agent terminates his or her registration with or withdraws his or her registration from a broker-dealer or issuer, a subsequent application by the agent for registration shall be considered an initial registration and shall be deemed a notification by the agent of termination or withdrawal of the previous registration or application.

(4) The commissioner may by rule establish provisions for concurrent registration with more than one (1) broker-dealer or issuer.

(c) It is unlawful for any person to transact business in this state as an investment adviser or representative without first being registered under this chapter unless the person:

(1) Is registered as an investment adviser with the Securities and Exchange Commission under Section 203 of the Investment Advisers Act of 1940, 15 U.S.C. 80b-1 et seq., as it existed on January 1, 2009, and has filed with the commissioner or the commissioner's designee a notice filing consisting of a copy of such documents on file with the Securities and Exchange Commission as the commissioner may by rule or order prescribe, along with an appropriate fee as set forth in 23-42-304(a)(3) and a consent to service of process;

(2) Is a "representative" of an investment adviser registered with the Securities and Exchange Commission under Section 203 of the Investment Advisers Act of 1940, 15 U.S.C. 80b-1 et seq., as it existed on January 1, 2009, and has no place of business located in this state; or

(3) Is not registered as an investment adviser with the Securities and Exchange Commission under Section 203 of the Investment Advisers Act of 1940, 15 U.S.C. 80b-1 et seq., as it existed on January 1, 2009, because the person is exempted from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940, 15 U.S.C. 80b-1 et seq., as it existed on January 1, 2009.

(d) (1) A notice filing required by subdivision (c)(1) of this section becomes effective upon receipt by the commissioner or the commissioner's designee of the notice filing, consent to service of process, and appropriate fee.

(2) (A) Every registration and every notice filing required by subdivision (c)(1) of this section expires December 31 of each year unless renewed.

(B) (i) An investment adviser that has made a notice filing pursuant to subdivision (c)(1) of this section may terminate the notice filing upon providing the commissioner notification of the termination.

(ii) The termination is effective upon the commissioner's receipt of notification of termination.

(e) (1) At least one (1) individual who shall have direct supervision over the purchase and sale of securities in Arkansas shall be:

(A) Registered as an agent and designated a principal of a broker-dealer; or

(B) Registered as an agent of the issuer and shall satisfy qualifications set by the commissioner.

(2) (A) Each broker-dealer which has a branch office located in Arkansas shall designate at least one (1) principal who is a resident of this state.

(B) A broker-dealer with more than one (1) branch office located in Arkansas may designate more than one (1) resident principal and specify the branch office or offices for which each resident principal has supervisory responsibility.

(3) Upon the removal of the individual or individuals designated under this subsection from the broker-dealer or issuer, or upon the removal of the principal from the direct supervision of the purchase and sale of securities in Arkansas, the issuer or broker-dealer must again satisfy this provision.

(f) No broker-dealer or investment adviser shall conduct business from a branch office within this state unless the branch office is registered under this chapter.