Arizona Laws 44-3151. Licensure required; exclusion; violation; classification
A. A person shall not transact business in this state as an investment adviser or investment adviser representative unless any of the following applies:
Attorney's Note
Under the Arizona Laws, punishments for crimes depend on the classification. In the case of this section:| Class | Prison | Fine |
|---|---|---|
| Class 1 misdemeanor | up to 6 months | up to $2,500 |
Terms Used In Arizona Laws 44-3151
- Director: means the director of the securities division of the commission. See Arizona Laws 44-1801
- Federal covered adviser: means an investment adviser registered under the investment advisers act of 1940. See Arizona Laws 44-3101
- Investment adviser: means any person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing or selling securities or who, for compensation and as a part of a regular business, issues or promulgates analyses or reports concerning securities. See Arizona Laws 44-3101
- Investment adviser representative: means any partner, officer or director of an investment adviser, any individual who occupies a status or performs functions similar to a partner, officer or director of an investment adviser or any other individual who is employed by or associated with an investment adviser, except clerical or ministerial personnel, and who does any of the following:
(a) Makes any recommendations or otherwise renders advice regarding securities. See Arizona Laws 44-3101
- Licensed investment adviser: means an investment adviser licensed under this chapter. See Arizona Laws 44-3101
- Person: means an individual, corporation, partnership, association, joint stock company or trust, limited liability company, government or governmental subdivision or agency or any other unincorporated organization. See Arizona Laws 44-1801
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.