Maine Revised Statutes Title 32 Sec. 16402 – Agent licensing requirement and exemptions
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1. Licensing requirement. It is unlawful for an individual to transact business in this State as an agent unless the individual is licensed under this chapter as an agent or is exempt from licensing as an agent under subsection 2.
[PL 2005, c. 65, Pt. A, §2 (NEW).]
Terms Used In Maine Revised Statutes Title 32 Sec. 16402
- Agent: means an individual, other than a broker-dealer, who represents a broker-dealer in effecting or attempting to effect purchases or sales of securities or represents an issuer in effecting or attempting to effect purchases or sales of the issuer's securities. See Maine Revised Statutes Title 32 Sec. 16102
- Broker-dealer: means a person engaged in the business of effecting transactions in securities for the account of others or for the person's own account. See Maine Revised Statutes Title 32 Sec. 16102
- Federal covered security: means a security that is, or upon completion of a transaction will be, a covered security under Section 18(b) of the federal Securities Act of 1933, 15 United States Code § 77r(b) or rules or regulations adopted pursuant to that provision. See Maine Revised Statutes Title 32 Sec. 16102
- Investment adviser: includes a financial planner or other person that, as an integral component of other financially related services, provides investment advice to others for compensation as part of a business or that holds itself out as providing investment advice to others for compensation. See Maine Revised Statutes Title 32 Sec. 16102
- Issuer: means a person that issues or proposes to issue a security, subject to the following:
A. See Maine Revised Statutes Title 32 Sec. 16102Sale: includes every contract of sale of, contract to sell or disposition of a security or interest in a security for value. See Maine Revised Statutes Title 32 Sec. 16102 State: means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands or any territory or insular possession subject to the jurisdiction of the United States. See Maine Revised Statutes Title 32 Sec. 16102 United States: includes territories and the District of Columbia. See Maine Revised Statutes Title 1 Sec. 72
2. Exemptions from licensing. The following individuals are exempt from the licensing requirement of subsection 1:
A. An individual who represents a broker-dealer in effecting transactions in this State limited to those described in Section 15(h)(2) of the federal Securities Exchange Act of 1934, 15 United States Code § 78(o)(2); [PL 2005, c. 65, Pt. A, §2 (NEW).]
B. An individual who represents a broker-dealer that is exempt under section 16401, subsection 2 or 4; [PL 2005, c. 65, Pt. A, §2 (NEW).]
C. An individual who represents an issuer with respect to an offer or sale of the issuer’s own securities or those of the issuer’s parent or any of the issuer’s subsidiaries and who is not compensated in connection with the individual’s participation by the payment of commissions or other remuneration based, directly or indirectly, on transactions in those securities; [PL 2005, c. 65, Pt. A, §2 (NEW).]
D. An individual who is a bona fide officer, director, partner or member of the issuer, or an individual occupying a similar status or performing similar functions, or a bona fide employee of the issuer who represents an issuer and who effects transactions in the issuer’s securities exempted by section 16202, other than section 16202, subsections 11, 25 and 26; [PL 2005, c. 65, Pt. A, §2 (NEW).]
E. An individual who represents an issuer that effects transactions solely in federal covered securities of the issuer, but an individual who effects transactions in a federal covered security under Section 18(b)(3) or 18(b)(4)(D) of the federal Securities Act of 1933, 15 United States Code § 77r(b)(3) or 77r(b)(4)(D) is not exempt if the individual is compensated in connection with the agent’s participation by the payment of commissions or other remuneration based, directly or indirectly, on transactions in those securities; [PL 2005, c. 65, Pt. A, §2 (NEW).]
F. An individual who represents a broker-dealer licensed in this State under section 16401, subsection 1 or exempt from licensing under section 16401, subsection 2 in the offer and sale of securities for an account of a nonaffiliated federal covered investment adviser with investments under management in excess of $100,000,000 acting for the account of others pursuant to discretionary authority in a signed record; [PL 2005, c. 65, Pt. A, §2 (NEW).]
G. An individual who represents an issuer in connection with the purchase of the issuer’s own securities; [PL 2005, c. 65, Pt. A, §2 (NEW).]
H. An individual who represents an issuer and who restricts participation to performing clerical or ministerial acts; or [PL 2005, c. 65, Pt. A, §2 (NEW).]
I. Any other individual exempted by rule adopted or order issued under this chapter. [PL 2005, c. 65, Pt. A, §2 (NEW).]
[PL 2005, c. 65, Pt. A, §2 (NEW).]
3. License effective only while employed or associated. The license of an agent is effective only while the agent is employed by or associated with a broker-dealer licensed under this chapter or an issuer that is offering, selling or purchasing its securities in this State and is effective only with respect to transactions effected as an employee or otherwise on behalf of said broker-dealer or issuer.
[PL 2005, c. 65, Pt. A, §2 (NEW).]
4. Limit on employment or association. It is unlawful for a broker-dealer, or an issuer engaged in offering, selling or purchasing securities in this State, to employ or associate with an agent who transacts business in this State on behalf of broker-dealers or issuers unless the agent is licensed under subsection 1 or exempt from licensing under subsection 2.
[PL 2005, c. 65, Pt. A, §2 (NEW).]
5. Limit on affiliations. An individual may not act as an agent for more than one broker-dealer or one issuer at a time, unless the broker-dealers and the issuers for which the agent acts are affiliated by direct or indirect common control or are authorized by rule or order under this chapter.
[PL 2005, c. 65, Pt. A, §2 (NEW).]
6. Rulemaking. Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2?A.
[PL 2005, c. 65, Pt. A, §2 (NEW).]
SECTION HISTORY
PL 2005, c. 65, §A2 (NEW).