Louisiana Revised Statutes 51:704 – Suspension or revocation of registration of dealers, salesmen, investment advisers, and investment adviser representatives; requiring current financial statements
Terms Used In Louisiana Revised Statutes 51:704
- Commissioner: means the commissioner of financial institutions who is also the commissioner of securities. See Louisiana Revised Statutes 51:702
- Dealer: means every person, other than a salesman registered under this Part, who engages, either for all or part of his time, directly or indirectly, as agent, broker, or principal in the business of offering, buying, selling, or otherwise dealing or trading in securities issued by another person but does not include:
(i) A bank chartered and issued a certificate of authority by the state of Louisiana and under the supervision of the commissioner of financial institutions, a national bank chartered by the government of the United States and under the supervision of the Comptroller of the Currency of the United States, a bank holding company organized under the laws of the state of Louisiana and under the supervision of the Board of Governors of the Federal Reserve, or the employees of such banks or bank holding companies acting in their official capacity. See Louisiana Revised Statutes 51:702
- Executive officer: means the president, the principal financial officer, the principal operating officer, each vice president with responsibility involving policy-making functions for a significant aspect of a person's business, the secretary, the treasurer, or any other person performing similar functions with respect to any organization, whether incorporated or unincorporated. See Louisiana Revised Statutes 51:702
- Fraud: Intentional deception resulting in injury to another.
- 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 Louisiana Revised Statutes 51:702
- Investment adviser representative: means any partner, officer, director, or a person occupying a similar status or performing similar functions, or other individual, except clerical or ministerial personnel, who is employed by or associated with an investment adviser that is registered or required to be registered under this Part, and who does any of the following:
(a) Makes any recommendations or otherwise renders advice regarding securities. See Louisiana Revised Statutes 51:702
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Person: means an individual, a corporation, a partnership, an association, a joint-stock company, a trust where the interest of the beneficiaries is evidenced by a security, or any unincorporated organization. See Louisiana Revised Statutes 51:702
- Salesman: means an individual, other than a dealer registered under this Part, employed, appointed, or authorized by a dealer or by an issuer, to sell securities in this state, but does not include any person specified in La. See Louisiana Revised Statutes 51:702
- Security: means any note; stock; treasury stock; bond; debenture; evidence of indebtedness; certificate of interest or participation in any profit-sharing agreement; collateral-trust certificate; preorganization certificate or subscription; transferable share; investment contract; voting-trust certificate; certificate of deposit for a security; fractional undivided interest in oil, gas, or other mineral rights; any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof); or, in general, any interest or instrument commonly known as a "security"; or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing. See Louisiana Revised Statutes 51:702
- State: means any state (or a designated state), territory, or possession of the United States, the District of Columbia, Puerto Rico and the Virgin Islands. See Louisiana Revised Statutes 51:702
A. The registration of any dealer, salesman, investment adviser, or investment adviser representative may be suspended or revoked by the commissioner as provided in Subsection B of this Section if he finds that such registrant and, in the case of a dealer or investment adviser, any general partner, limited partner, director, managing member, affiliate, or executive officer of such dealer or investment adviser:
(1) Has willfully made or caused to be made in any application for registration under this Part, or in any hearing conducted by the commissioner, any statement which was, at the time and in the light of the circumstances under which it was made, false or misleading with respect to any material fact or has willfully omitted to state in any such application any material fact which is required to be stated therein or necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading.
(2) In the case of a dealer, does not meet the bonding requirements of this Part or is insolvent in the sense that he cannot meet his obligations as they mature.
(3) Has willfully violated or willfully failed to comply with this Part or a predecessor act, or any regulation or order promulgated or issued under this Part or any predecessor law.
(4) Has been convicted of a misdemeanor of which fraud is an essential element or which involves a security or any aspect of the securities business or has ever been convicted of a felony.
(5) Is permanently or temporarily enjoined by any court of competent jurisdiction from engaging in or continuing any conduct or practice involving any aspect of the securities business.
(6) Is subject to any currently effective order of the Securities and Exchange Commission or the securities administrator of any other state denying registration to or revoking or suspending the registration of such person as a dealer, salesman, investment adviser, or investment adviser representative, or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, as now or hereafter amended, suspending or expelling such person from membership in such association or exchange.
(7) Conducts business in purchasing or selling securities in secondary market transactions at such variations from current market prices as, in the light of all the circumstances, are unconscionable.
(8) Has failed to file with the commissioner any financial statement required pursuant to La. Rev. Stat. 51:704(C).
(9) Has failed to reasonably supervise any salesman or investment adviser representative for whom he has supervisory responsibility. The commissioner may adopt rules or regulations for such supervision promulgated in accordance with the Administrative Procedure Act.
(10) Has engaged in dishonest or unethical practices in activity regulated under the provisions of this Part. The commissioner shall adopt rules and regulations in accordance with the Administrative Procedure Act to illustrate examples of such practices providing grounds for suspension or revocation of registration. Such examples shall be for illustrative purposes only and shall not be deemed exclusive.
B.(1) Where the commissioner finds that there are grounds for revocation or suspension as provided in Subsection A of this Section, he may issue an order suspending or revoking the registration of any dealer, salesman, investment adviser, or investment adviser representative. Such order shall not be effective until notice and opportunity for hearing are provided in accordance with La. Rev. Stat. 51:716 and until the commissioner shall issue a written order if such dealer, salesman, investment adviser, or investment adviser representative requests a hearing under La. Rev. Stat. 51:716, but the commissioner may, if he finds that the public safety or welfare requires emergency action, order an immediate suspension of the registration of a dealer, salesman, investment adviser, or investment adviser representative. An order of immediate suspension shall expire automatically if the commissioner fails to afford notice and opportunity for hearing pursuant to La. Rev. Stat. 51:716.
(2) Suspension or revocation of the registration of a dealer or investment adviser shall also suspend or revoke the registration of all his salesmen or investment adviser representatives, respectively, but suspension or revocation of the registration of a salesman or investment adviser representative solely because he was employed by a dealer or investment adviser whose registration was suspended or revoked shall not prejudice subsequent application for registration by such salesman or investment adviser representative.
C. The commissioner may at any time require a dealer or investment adviser to file with him a financial statement showing the financial condition of such dealer or investment adviser as of the most recent practicable date, but such financial statement need not be certified.
Acts 1985, No. 722, §1; Acts 2008, No. 274, §1; Acts 2012, No. 36, §1, eff. May 4, 2012.