Vermont Statutes Title 9 Sec. 5404
Terms Used In Vermont Statutes Title 9 Sec. 5404
- 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
- Commissioner: means the Commissioner of Financial Regulation. See
- Federal covered investment adviser: means a person registered under 15 U. See
- Filing: means the receipt under this chapter of a record by the Commissioner or a designee of the Commissioner. See
- following: when used by way of reference to a section of the law shall mean the next preceding or following section. See
- Investment adviser: means a person that, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or the advisability of investing in, purchasing, or selling securities or that, for compensation and as a part of a regular business, issues or promulgates analyses or reports concerning securities. See
- Investment adviser representative: means an individual employed by or associated with an investment adviser or federal covered investment adviser and who makes any recommendations or otherwise gives investment advice regarding securities, manages accounts or portfolios of clients, determines which recommendation or advice regarding securities should be given, provides investment advice or holds himself or herself out as providing investment advice, receives compensation to solicit, offer, or negotiate for the sale of or for selling investment advice, or supervises employees who perform any of the foregoing. See
- Securities and Exchange Commission: means the U. See
- Self-regulatory organization: means any national securities exchange, registered securities association, clearing agency registered under 15 U. See
- State: means a state of the United States, the District of Columbia, Puerto Rico, the U. See
§ 5404. Investment adviser representative registration requirement and exemptions
(a) It is unlawful for an individual to transact business in this State as an investment adviser representative unless the individual is registered under this chapter as an investment adviser representative or is exempt from registration as an investment adviser representative under subsection (b) of this section.
(b) The following individuals are exempt from the registration requirement of subsection (a) of this section:
(1) an individual who is employed by or associated with an investment adviser that is exempt from registration under subsection 5403(b) of this chapter or a federal covered investment adviser that is excluded from the notice filing requirements of section 5405 of this chapter; and
(2) any other individual exempted by rule adopted or order issued under this chapter.
(c) The registration of an investment adviser representative is not effective while the investment adviser representative is not employed by or associated with an investment adviser registered under this chapter or a federal covered investment adviser that has made or is required to make a notice filing under section 5405 of this chapter.
(d) An individual may transact business as an investment adviser representative for more than one investment adviser or federal covered investment adviser unless a rule adopted or order issued under this chapter prohibits or limits an individual from acting as an investment adviser representative for more than one investment adviser or federal covered investment adviser.
(e) It is unlawful for an individual acting as an investment adviser representative, directly or indirectly, to conduct business in this State on behalf of an investment adviser or a federal covered investment adviser if the registration of the individual as an investment adviser representative is suspended or revoked or the individual is barred from employment or association with an investment adviser or a federal covered investment adviser by an order under this chapter, the Securities and Exchange Commission, or a self-regulatory organization. Upon request from a federal covered investment adviser and for good cause, the Commissioner, by order issued, may waive, in whole or in part, the application of the requirements of this subsection to the federal covered investment adviser.
(f) An investment adviser registered under this chapter, a federal covered investment adviser that has filed a notice under section 5405 of this chapter, or a broker-dealer registered under this chapter is not required to employ or associate with an individual as an investment adviser representative if the only compensation paid to the individual for a referral of investment advisory clients is paid to an investment adviser registered under this chapter, a federal covered investment adviser who has filed a notice under section 5405, or a broker-dealer registered under this chapter with which the individual is employed or associated as an investment adviser representative. (Added 2005, No. 11, § 1, eff. July 1, 2006.)