reglab/statecodes huggingface dataset:
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.04 - Exemption from Registration Regulations › Section 02.02.04.10 - MLOE: Generally Applicable Conditions

Current through Register Vol. 51, No. 14, July 12, 2024
A. General Requirements.
(1) Transactions by an issuer involving the offer or sale of securities of the issuer that are part of an offering that satisfies the terms of MLOE are exempt under the Maryland Securities Act, Corporations and Associations Article, §
										11-602(9), Annotated Code of Maryland.
(2) The burden of proving an exemption under MLOE is on the person claiming the exemption.
(3) Notwithstanding the failure of a transaction to satisfy one or more of the terms of MLOE, upon application, the Commissioner may order that the transaction is exempt under the Maryland Securities Act, Corporations and Associations Article, §
										11-602(9), Annotated Code of Maryland, if the Commissioner finds that the:
(a) Transaction demonstrates substantial compliance in good faith with the conditions of MLOE; and
(b) Order would be consistent with the public interest.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.04 - Exemption from Registration Regulations › Section 02.02.04.11 - MLOE: Local Issuer Exemption

Current through Register Vol. 51, No. 14, July 12, 2024
A. Nature of Issuer.
(1) Exemption under MLOE and this regulation is available only to local issuers.
(2) The Commissioner may extend by order the exemption under this regulation to a limited liability company, partnership, or other entity that satisfies all of the elements of the definition of local issuer except that it is not a corporation, if the Commissioner determines that the order would be consistent with the public interest.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.04 - Exemption from Registration Regulations › Section 02.02.04.12 - MLOE: General Transactional Exemption

Current through Register Vol. 51, No. 14, July 12, 2024
A. Nature of Security.
(1) Exemption under MLOE and this regulation is available for the following securities issued by a corporation, limited liability company, partnership, or real estate investment trust:
(a) A note, stock, bond, debenture, evidence of indebtedness, voting trust certificate, partnership interest, limited liability company interest, share of beneficial interest of a real estate investment trust, or American Depositary Receipt;
(b) A warrant or right to purchase or subscribe for a security listed in §A(1)(a) of this regulation; or
(c) A security convertible into a security listed in §A(1)(a) or (b) of this regulation.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.04 - Exemption from Registration Regulations › Section 02.02.04.13 - MLOE: Insignificant Deviations

Current through Register Vol. 51, No. 14, July 12, 2024
A. Conditions. A failure to comply with a term of MLOE does not result in the loss of an exemption from the registration requirements of the Maryland Securities Act, Corporations and Associations Article, §
									11-501, Annotated Code of Maryland, for an offer or sale to a particular individual or entity, if the issuer or other person relying on the exemption demonstrates that the:
(1) Failure to comply did not pertain to a term directly intended to protect that particular individual or entity or class of individuals or entities;
(2) Failure to comply did not pertain to Regulation .10C or G, Regulation .11B or C, or Regulation .12B of this chapter;
(3) Failure to comply was insignificant with respect to the offering as a whole; and
(4) Issuer made a good faith and reasonable attempt to comply with all applicable terms of MLOE.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.04 - Exemption from Registration Regulations › Section 02.02.04.14 - Exemption from the Maryland Securities Act, Corporations and Associations Article, Section11-601(16), Annotated Code of Maryland, for Certain Securities

Current through Register Vol. 51, No. 14, July 12, 2024
The following securities are exempt from registration filings under the Maryland Securities Act, Corporations and Associations Article, §§
									11-205 and  11-501, Annotated Code of Maryland, provided that the exemption may be revoked with respect to a specific security pursuant to the Maryland Securities Act, Corporations and Associations Article, §
									11-603: Mortgage-related securities, as defined under § 3(A)(41) of the federal Securities Exchange Act of 1934, and the rules, regulations, and interpretive releases promulgated under it.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.04 - Exemption from Registration Regulations › Section 02.02.04.15 - Coordination with SEC Rule 505 or 506

Current through Register Vol. 51, No. 14, July 12, 2024
A. Scope.
(1) This regulation exempts under the Maryland Securities Act, Corporations and Associations Article, §
										11-602(15), Annotated Code of Maryland, certain transactions from the registration requirements of the Maryland Securities Act, Corporations and Associations Article, §
										11-501, Annotated Code of Maryland.
(2) This regulation and the Maryland Securities Act, Corporations and Associations Article, §
										11-602(15), Annotated Code of Maryland, do not provide an exemption from the antifraud provisions of the Maryland Securities Act, Corporations and Associations Article, Subtitles 3 and 7, Annotated Code of Maryland.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.04 - Exemption from Registration Regulations › Section 02.02.04.17 - Exemption from the Maryland Securities Act, Corporations and Associations Article, Section11-602(17), Annotated Code of Maryland, for Certain Transactions

Current through Register Vol. 51, No. 14, July 12, 2024
The following transactions are exempt from registration filings under the Maryland Securities Act, Corporations and Associations Article, 11-205 and 11-501, Annotated Code of Maryland, provided that the exemption may be revoked with respect to a specific transaction pursuant to the Maryland Securities Act, Corporations and Associations Article, §
									11-603: A transaction involving the offer or sale of one or more promissory notes directly secured by a first lien on a single parcel of real estate upon which is located a dwelling or other residential or commercial structure, and participation interest in the notes, that are exempt under § 4(5) of the federal Securities Act of 1933, and the rules, regulations, and interpretive releases promulgated under it.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.05 - Investment Adviser Regulations › Section 02.02.05.01 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. As used in the Maryland Securities Act, Corporations and Associations Article, §
									11-101(h), Annotated Code of Maryland, the following terms have the meanings indicated.
B. Terms Defined.
(1) "Compensation" means a form of payment or consideration, whether direct or indirect or in the form of cash or other benefits, that is paid or conveyed to or for the benefit of the investment adviser in connection with the rendering of the investment advisory services described in the Maryland Securities Act, Corporations and Associations Article, §
										11-101(i), Annotated Code of Maryland.
(2) "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" has the same meaning as the identical phrase found in § 202(a)(11) of the Investment Advisers Act of 1940 and the rules, regulations, and interpretive releases promulgated under it.
(3) "Engineer" means a person who is registered and in good standing with the State Board for Professional Engineers, as provided in Business Occupations and Professions Article, Title 14, Annotated Code of Maryland, or its equivalent licensing and regulatory agency in a state.
(4) "Insurance producer" means an insurance producer licensed by and in good standing with the Maryland Insurance Administration, as set forth in the Insurance Article, Annotated Code of Maryland.
(5) "Investment Advisers Act of 1940" means the federal act of that name, as amended, set forth in 15 U.S.C. §§ 80b-1-80 b-21.
(6) "Investment Company Act of 1940" means the federal act of that name, as amended, set forth in 15 U.S.C. §§ 80a-1-80 a-52.
(7) "Lawyer" means a person who is admitted to practice before the bar of any state and is in good standing with it.
(8) "Securities Exchange Act of 1934" means the federal act of that name, as amended, set forth in 15 U.S.C. §§
											78a - 78jj.
(9) "Solely incidental to the practice of his profession" has the same meaning as the identical phrase found in § 202(a)(11) of the Investment Advisers Act of 1940 and the rules, regulations, and interpretive releases promulgated under it.
(10) "Teacher" means a person who possesses a valid license or certificate of qualification to teach in an educational institution in a state, or a person who is employed in a teaching or research capacity by a college, university, or other accredited educational institution.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.05 - Investment Adviser Regulations › Section 02.02.05.02 - Indirect Consideration

Current through Register Vol. 51, No. 14, July 12, 2024
A. The antifraud provisions of the Maryland Securities Act, Corporations and Associations Article, §
									11-302(a), Annotated Code of Maryland, apply to a person who receives consideration indirectly from another person for:
(1) Advising the person as to the value of securities or their purchase or sale; or
(2) Acting as an investment adviser or investment adviser representative.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.05 - Investment Adviser Regulations › Section 02.02.05.03 - Dishonest or Unethical Practices

Current through Register Vol. 51, No. 14, July 12, 2024
A. Definitions. As used in this regulation, the following terms have the meanings indicated:
(1) "Affiliate" has the meaning stated in § 2(a)(3) of the Investment Company Act of 1940.
(2) "Found" means determined or ascertained by adjudication or consent in a final court action, administrative proceeding, or SRO proceeding.
(3) "Investment-related or financially related" means pertaining to investment advisory or financial planning services, counseling or consulting activities, securities, commodities, banking, insurance, real estate, or accountancy, including, but not limited to, acting as or being associated with a broker-dealer, investment company, investment adviser, government securities broker or dealer, municipal securities dealer, insurance company or agent or broker, bank, savings institution, trust company, credit union, or savings and loan association, or fiduciary, or an entity or person required to be registered under the Commodity Exchange Act.
(4) "Involved" means acting or aiding, abetting, causing, counseling, commanding, inducing, conspiring with, or failing reasonably to supervise another in doing an act.
(5) "Management person" means a person with power to:
(a) Exercise, directly or indirectly, a controlling influence over the management or policies of an investment adviser; or
(b) Determine the general investment advice given to clients.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.05 - Investment Adviser Regulations › Section 02.02.05.04 - Custody of Client Funds or Securities

Current through Register Vol. 51, No. 14, July 12, 2024
A. Conditions of Custody. As provided in the Maryland Securities Act, Corporations and Associations Article, §
									11-302(f), Annotated Code of Maryland, it is unlawful for an investment adviser to take or have custody of securities or funds of a client unless:
(1) The investment adviser notifies the Commissioner in writing that the investment adviser has or may have custody, which notification may be given on Form ADV;
(2) The securities of each client are segregated, marked to identify the particular client having the beneficial interest in those securities, and held in safekeeping in a place reasonably free from risk of destruction or other loss;
(3) All client funds are deposited as follows:
(a) In one or more bank accounts containing only clients' funds,
(b) The account or accounts are maintained in the name of the investment adviser as agent or trustee for the clients, and
(c) The investment adviser maintains a separate record for each account showing the name and address of the bank where the account is maintained, the dates and amounts of deposits in and withdrawals from the account, and the exact amount of each client's beneficial interest in the account;
(4) Immediately after accepting custody or possession of funds or securities from a client, the investment adviser notifies the client in writing of the place and manner in which the funds and securities will be maintained and subsequently, if or when there is a change in the place or manner in which the funds or securities are maintained, the investment adviser gives written notice to the client;
(5) At least once every 3 months, the investment adviser sends to each client an itemized statement showing the client's funds and securities in the investment adviser's custody at the end of the period, and all debits, credits, and transactions in the client's account during that period; and
(6) At least once each calendar year, an independent certified public accountant or public accountant ("accountant") verifies all client funds and securities by an actual examination, which shall be made at a time chosen by the accountant without prior notice to the investment adviser. A report stating that the accountant has made an examination of the client funds and securities in the custody of the investment adviser, and describing the nature and extent of the examination, shall be filed with the Commissioner within 30 days after each examination.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.05 - Investment Adviser Regulations › Section 02.02.05.05 - Information to be Furnished to Clients ("Brochure Rule")

Current through Register Vol. 51, No. 14, July 12, 2024
A. Unless otherwise provided in this regulation, an investment adviser may fulfill the disclosure requirements of the Maryland Securities Act, Corporations and Associations Article, §§
									11-302(d)  and  11-411(b), Annotated Code of Maryland, by complying with the provisions of § 204 of the Investment Advisers Act of 1940 and the rules, regulations, and interpretive releases promulgated under it with respect to Form ADV. Taken together, these requirements may be known as the "brochure rule".
B. As provided in the Maryland Securities Act, Corporations and Associations Article, §§
									11-302(d)  and  11-411(b), Annotated Code of Maryland, the Commissioner may impose on an investment adviser, or a class or group of investment advisers, requirements relating to the disclosure of information to clients that are in addition to those set forth in §A of this regulation. These additional requirements may be imposed as appropriate in the public interest or for the protection of investors and clients.
C. Nothing in this regulation shall relieve an investment adviser from any obligations under any other provision of the Maryland Securities Act, Corporations and Associations Article, Title 11, Annotated Code of Maryland, or a regulation or order promulgated under it, or any other state or federal law, rule, or regulation that requires the disclosure of information to clients or prospective clients not specifically required by this regulation.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.05 - Investment Adviser Regulations › Section 02.02.05.07 - Exemption from the Maryland Securities Act, Corporations and Associations Article, Section11-302(a)(4), for Certain Broker-Dealers

Current through Register Vol. 51, No. 14, July 12, 2024
A. Definitions. As used in this regulation:
(1) "Publicly distributed written materials" means written materials that are distributed to 35 or more persons who pay for those materials;
(2) "Publicly made oral statements" means oral statements made simultaneously to 35 or more persons who pay for access to those statements.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.05 - Investment Adviser Regulations › Section 02.02.05.09 - Transactions Considered Not to be Assignments

Current through Register Vol. 51, No. 14, July 12, 2024
For purposes of the Maryland Securities Act, Corporations and Associations Article, §
									11-302(e)(1)(ii), Annotated Code of Maryland, a transaction that does not result in a change of actual control or management of an investment adviser is not an assignment.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.05 - Investment Adviser Regulations › Section 02.02.05.10 - Electronic Filing with Designated Entity

Current through Register Vol. 51, No. 14, July 12, 2024
A. Designation. Pursuant to the Maryland Securities Act, Corporations and Associations Article, §
									11-405(a), Annotated Code of Maryland, the Commissioner designates the web-based Investment Adviser Registration Depository (IARD) operated by the Financial Industry Regulatory Authority to receive and store filings and collect related fees from investment advisers and investment adviser representatives on behalf of the Commissioner.
B. Use of the IARD. Unless otherwise provided, all investment adviser and investment adviser representative applications, amendments, reports, notices, related filings, and fees required to be filed with the Commissioner pursuant to the regulations promulgated under the Maryland Securities Act, Corporations and Associations Article, Title 11, Annotated Code of Maryland, shall be filed electronically with and transmitted to the IARD.
C. Electronic Filing Conditions.
(1) Electronic Signature. When a signature or signatures are required by the particular instructions of any filing to be made through the IARD, a duly authorized officer of the investment adviser or the investment adviser, as required, shall affix the individual's electronic signature to the filing by typing the individual's name in the appropriate fields and submitting the filing to the IARD. Submission of a filing in this manner shall constitute irrefutable evidence of legal signature by any individual whose name is typed on the filing.
(2) Completion of Filing. Applications for initial and renewal registration as an investment adviser may not be considered filed until the required fee and all required submissions have been received by the Commissioner.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.05 - Investment Adviser Regulations › Section 02.02.05.11 - Applications for Investment Advisers and Notice Filings for Federal Covered Advisers

Current through Register Vol. 51, No. 14, July 12, 2024
A. Application Form for Investment Adviser Registration.
(1) Initial Application. An application for initial registration as an investment adviser shall be made by completing Form ADV (Uniform Application for Investment Adviser Registration) in accordance with the form instructions and by filing the form with the IARD. The application for initial registration shall also include the following:
(a) Evidence of compliance by the applicant with or exemption from the examination requirements of Regulation .14 of this chapter;
(b) For those applicants subject to Regulation .15 of this chapter, a balance sheet prepared in accordance with the instructions to the Form ADV, and, if such balance sheet is as of a date more than 45 days from the date of filing of the application, an unaudited balance sheet prepared in accordance with the instructions to the Form ADV;
(c) A sample copy of each investment advisory contract used by the applicant;
(d) The fee required by the Maryland Securities Act, Corporations and Associations Article, §
											11-407, Annotated Code of Maryland; and
(e) Any other information the Commissioner may reasonably require.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.05 - Investment Adviser Regulations › Section 02.02.05.12 - Initial and Renewal Registration as Investment Adviser Representative

Current through Register Vol. 51, No. 14, July 12, 2024
A. Method of Filing. Until the IARD is capable of accepting applications to register investment adviser representatives, an application for initial or renewal registration as an investment adviser representative shall be submitted in accordance with §C of this regulation. When the IARD is capable of accepting applications to register investment adviser representatives, an application for initial and renewal registration as an investment adviser representative shall be submitted in accordance with §B of this regulation.
B. Electronic Filings.
(1) Initial Application. An application for initial registration as an investment adviser representative shall be made by completing the Uniform Application for Securities Industry Registration or Transfer (Form U-4), in accordance with the form instructions and by filing the Form U-4 with the IARD. The application for initial registration also shall include:
(a) Evidence of compliance by the applicant with or exemption from the examination requirements of Regulation .14 of this chapter; and
(b) The fee required by the Maryland Securities Act, Corporations and Associations Article, §
											11-407, Annotated Code of Maryland.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.05 - Investment Adviser Regulations › Section 02.02.05.13 - Investment Adviser Supervision

Current through Register Vol. 51, No. 14, July 12, 2024
A. An investment adviser registered or required to be registered in this State shall establish, maintain, and enforce written supervisory guidelines that are reasonably designed to:
(1) Supervise the activities of an investment adviser representative and associated person to achieve compliance with the Maryland Securities Act, Corporations and Associations Article, Title 11, Annotated Code of Maryland, and the regulations promulgated under it; and
(2) Achieve compliance by the investment adviser with the Maryland Securities Act, Corporations and Associations Article, Title 11, Annotated Code of Maryland, and the regulations promulgated under it.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.05 - Investment Adviser Regulations › Section 02.02.05.14 - Examination Requirements for Investment Advisers and Investment Adviser Representatives

Current through Register Vol. 51, No. 14, July 12, 2024
A. Definitions. As used in this regulation, the following terms have the meanings indicated:
(1) Approved IAR continuing education credit" means the materials, written, oral, or otherwise, that have been approved by NASAA or its designee and that make up the educational program provided to an investment adviser representative (IAR) under this regulation.
(2) "Authorized provider" means a person that NASAA or its designee has authorized to provide continuing education content required by this regulation.
(3) "Credit" means a unit that has been designated by NASAA or its designee as at least 50 minutes of educational instruction.
(4) "Home state" means the state in which the investment adviser representative has its principal office and place of business.
(5) "IAR ethics and professional responsibility content" means approved IAR continuing education content that addresses an investment adviser representative's ethical and regulatory obligations.
(6) "IAR products and practice content" means approved IAR continuing education content that addresses an investment adviser representative's continuing skills and knowledge regarding financial products, investment features, and practices in the investment advisory industry.
(7) "NASAA" means the North American Securities Administrators Association or a committee designated by its Board of Directors.
(8) "Reporting period" means one 12-month period as determined by NASAA. An investment adviser representative's initial reporting period with this State commences the first day of the first full reporting period after the individual is registered or required to be registered with this State.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.05 - Investment Adviser Regulations › Section 02.02.05.15 - Financial Requirements for Certain Investment Advisers

Current through Register Vol. 51, No. 14, July 12, 2024
A. For purposes of this regulation, the following terms have the meanings indicated:
(1) "Net assets" means the excess of assets over liabilities, as determined by generally accepted accounting principles.
(2) "Net capital" has the meaning stated in 17 CFR § 240.15c 3-1 (SEC Rule 15c3-1, Net Capital Requirements for Brokers and Dealers).
(3) "Tangible net assets" means the net assets of an investment adviser registered or required to be registered reduced by the following:
(a) Prepaid expenses, except as to items properly classified as current assets under generally accepted accounting principles;
(b) Deferred charges;
(c) Goodwill, franchise rights, organizational expenses, patents, copyrights, marketing rights, unamortized debt discount and expense, and all other assets of intangible nature; and
(d) Homes, furnishings, and automobiles and personal items not readily marketable, in the case of an individual, or advances or loans to stockholders and officers, in the case of a corporation, or advances or loans to partners, in the case of a partnership.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.05 - Investment Adviser Regulations › Section 02.02.05.17 - Financial Reporting Requirements for Certain Investment Advisers

Current through Register Vol. 51, No. 14, July 12, 2024
A. A registered investment adviser that has custody of client funds or securities, or requires payment of advisory fees 6 months or more in advance and in excess of $500 per client, shall file with the Commissioner an audited balance sheet as of the end of the investment adviser's fiscal year. Each balance sheet filed under this regulation shall be:
(1) Audited by an independent certified public accountant;
(2) Prepared in conformity with generally accepted accounting principles; and
(3) Accompanied by a note stating the principles used to prepare it, the basis of included securities or assets, and any other explanations required for clarity.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.05 - Investment Adviser Regulations › Section 02.02.05.18 - Correction of Documents Filed by Investment Advisers and Investment Adviser Representatives

Current through Register Vol. 51, No. 14, July 12, 2024
A. Scope. This regulation governs amendment filings for investment advisers and investment adviser representatives that have not yet transitioned onto the IARD. Investment advisers and investment adviser representatives that have transitioned onto the IARD shall comply with Regulations .11A(3) and .12A(3) of this chapter.
B. An amendment to an investment adviser's filings required by the Maryland Securities Act, Corporations and Associations Article, §
									11-411(d), Annotated Code of Maryland, shall be filed with the Commissioner.
C. An amendment to an investment adviser representative's filings required by the Maryland Securities Act, Corporations and Associations Article, §
									11-411(d), Annotated Code of Maryland, shall be filed with the Commissioner upon Form U-4.
D. An amendment required by the Maryland Securities Act, Corporations and Associations Article, §
									11-411(d), Annotated Code of Maryland, shall be:
(1) Filed within 30 days of the event giving rise to the amendment; and
(2) Marked to indicate clearly the changes on the filing that is being amended.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.05 - Investment Adviser Regulations › Section 02.02.05.19 - Withdrawal of Investment Adviser and Investment Adviser Representative Registrations

Current through Register Vol. 51, No. 14, July 12, 2024
A. Investment Adviser. An application for withdrawal of registration or of an application to register as an investment adviser shall be made by completing Form ADV-W (Notice of Withdrawal from Registration as Investment Adviser) in accordance with the form instructions and by filing the form with the IARD.
B. Investment Adviser Representative. An application for withdrawal of registration or of an application to register as an investment adviser representative shall be made by completing Form U-5 (Uniform Notice of Withdrawal of Securities Industry Registration) in accordance with the form instructions and by filing the form with the IARD.
C. Filings required by §A or B of this regulation shall be filed within 30 days of the event giving rise to the filing.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.05 - Investment Adviser Regulations › Section 02.02.05.20 - Exemption from the Maryland Securities Act, Corporations and Associations Article, Section11-101(i)(2), Annotated Code of Maryland, for Certain Individuals

Current through Register Vol. 51, No. 14, July 12, 2024
Under the Maryland Securities Act, Corporations and Associations Article, §
									11-101(i)(2), Annotated Code of Maryland, an investment adviser representative does not include:
A. An individual broker-dealer agent who:
(1) In conjunction with the agent's employment or affiliation with a broker-dealer, holds out to the public, as set forth in the Maryland Securities Act, Corporations and Associations Article, §
										11-101(h)(1)(ii)  3, Annotated Code of Maryland, by use of the title "financial consultant", "financial adviser", or similar title or designation;
(2) Does not in any other manner hold out as an investment adviser or representative;
(3) Does not in any other manner act or perform as an investment adviser or representative as set forth in the Maryland Securities Act, Corporations and Associations Article, §
										11-101(h)(1), Annotated Code of Maryland;
(4) Is registered and in good standing in this State as the agent of a broker-dealer that is registered and in good standing in this State; and
(5) Has passed, with a score of 70 percent or better, the Series 7 examination administered by the FINRA, or a combination of examinations that the Commissioner determines is the substantial equivalent of the Series 7 examination;
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.05 - Investment Adviser Regulations › Section 02.02.05.21 - Exemption from the Maryland Securities Act, Corporations and Associations Article, Section11-101(h)(2)(iii)3, Annotated Code of Maryland, for Certain Individuals

Current through Register Vol. 51, No. 14, July 12, 2024
For the purposes of the Maryland Securities Act, Corporations and Associations Article, §
									11-101(h)(2)(iii)  3, Annotated Code of Maryland, a certified public accountant or certified public accounting firm (CPA) is not considered to "hold out" as an investment adviser if the CPA limits his or her holding out as an investment adviser to the following and does not in any other manner hold out as an investment adviser:
A. Enumerating financial or investment planning, counseling, consulting, or similar types of advising or consulting as a service of the practice of the CPA in brochures or similar materials used for internal client purposes only;
B. Enumerating financial or investment planning, counseling, consulting, or similar types of advising or consulting as a service of the practice of the CPA under the heading or caption "Certified Public Accountants" in a classified telephone book advertisement or listing, or in a directory of professional services, provided that the services are enumerated among the other services that are offered by the CPA.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.05 - Investment Adviser Regulations › Section 02.02.05.22 - Cancellation of Investment Adviser and Investment Adviser Representative Applications

Current through Register Vol. 51, No. 14, July 12, 2024
A. Abandonment of Application. For purposes of this regulation and the Maryland Securities Act, Corporations and Associations Article, §
									11-414, Annotated Code of Maryland, an application is considered abandoned if the applicant has failed to pursue the application for initial registration in a diligent manner.
B. Notice of Proposed Cancellation. Before the Commissioner cancels an application for initial registration because the applicant has abandoned the application, the Commissioner shall send the applicant notice of the proposed cancellation at least 15 days before issuing an order of cancellation. The notice shall be sent by certified mail, return receipt requested, to the last known address of the applicant as specified in the application or correspondence with the Division.
C. Request for Time to Complete Application.
(1) An applicant that receives a notice of proposed cancellation under §B of this regulation may request, before the date of the proposed cancellation, that the application remain pending so that the applicant may complete the application.
(2) An applicant that has requested that an application remain pending shall complete the application within 30 days of the date of the request.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.01 - Scope

Current through Register Vol. 51, No. 14, July 12, 2024
A. This chapter contains procedures for administrative hearings before the Maryland Securities Commissioner which are conducted under the:
(1) Maryland Securities Act, Corporations and Associations Article, Title 11, Annotated Code of Maryland ("the Maryland Securities Act");
(2) Maryland Business Opportunities Sales Act, Business Regulation Article, Title 14, Subtitle 1, Annotated Code of Maryland ("the Business Opportunities Act"); or
(3) Maryland Franchise Registration and Disclosure Law, Business Regulation Article, Title 14, Subtitle 2, Annotated Code of Maryland ("the Maryland Franchise Law").
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.03 - Time and Place of Filing

Current through Register Vol. 51, No. 14, July 12, 2024
A. Place of Filing. Papers required or permitted to be filed under this chapter, or any provision of applicable law, shall be filed with the Office of the Attorney General, Division of Securities, 200 St. Paul Place, 20th Floor, Baltimore, MD 21202-2020, or such other places as the Commissioner may designate.
B. Date of Filing. A paper is filed when it is received by the Commissioner.
C. Computation of Time. Unless otherwise specifically provided by law or these regulations, computation of any time period prescribed by these regulations or by an order of the Commissioner begins with the first day following the act or event that initiates the time period. The last day of the time period so computed is included unless it is a Saturday, Sunday, State holiday, or any other day on which the Division is closed, in which event the period runs until the end of the next business day.
D. Additional Time After Service by Mail. If a notice or other filing is served by mail and the party served is entitled or required to take some action within a prescribed time period after service:
(1) The date of mailing is the date of service; and
(2) 3 days are added to the prescribed time period.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.04 - Form of Papers

Current through Register Vol. 51, No. 14, July 12, 2024
A. Caption. A pleading or other paper filed by a party with the Commissioner shall contain a caption that sets forth:
(1) The name of the first listed respondent;
(2) The file number assigned to the case by the Division; and
(3) A brief descriptive title of the pleading.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.05 - Initiation of Contested Case

Current through Register Vol. 51, No. 14, July 12, 2024
A. Service of Summary Order or Show Cause Order. The Division shall promptly serve a copy of a summary order or a show cause order upon each respondent named in the order. Service may be made by personal service or by registered or certified mail. If appropriate, service may be made upon the Commissioner as the respondent's attorney for service of process in accordance with the Maryland Securities Act, Corporations and Associations Article, §
									11-802, or in accordance with an appointment made pursuant to the Maryland Franchise Law, Business Regulation Article, §
									14-216(c)(26), Annotated Code of Maryland.
B. Notice of Right to Hearing. In addition to any contents required by statute, a summary order or show cause order shall advise the respondent of the:
(1) Respondent's right to a hearing;
(2) Time period within which the respondent must request a hearing;
(3) Respondent's obligation to file an answer; and
(4) Effect of a failure to file an answer and to request a hearing.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.06 - Answer

Current through Register Vol. 51, No. 14, July 12, 2024
A. Time for Filing. A respondent shall file with the Commissioner a written answer to a show cause or summary order within 15 days of service of the order and within 7 days of service of any amended order. The parties may agree to extend the time for filing the answer up to 30 days. Any additional extension of time may only be granted by order of the Commissioner.
B. Response to Factual Allegations. The answer shall admit or deny each factual allegation in the show cause or summary order and shall set forth affirmative defenses, if any. A respondent without knowledge or information sufficient to form a belief as to the truth of an allegation shall so state.
C. Request for Hearing. The answer shall indicate whether the respondent requests a hearing concerning the show cause or summary order.
D. Failure to File Answer. If a respondent fails to file a timely answer, the Commissioner may issue a proposed or final decision adverse to that respondent.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.07 - Delegation of Hearing Authority

Current through Register Vol. 51, No. 14, July 12, 2024
A. Delegation. The Commissioner may delegate authority to conduct a hearing to the Office of Administrative Hearings or to another person designated in accordance with State Government Article, §
									10-205(a), Annotated Code of Maryland.
B. Scope of Delegation. The Commissioner shall indicate in a written notice of delegation whether the Office of Administrative Hearings or other designated hearing officer is to issue proposed or final findings of fact, proposed or final conclusions of law, and a proposed or final decision. The Commissioner shall serve the notice of delegation on all parties and on the Office of Administrative Hearings or other designated hearing officer.
C. Revocation of Delegation. The Commissioner may revoke all or part of a delegation of a contested case to the Office of Administrative Hearings or other designated hearing officer if the case:
(1) Involves novel or unanticipated factual or legal issues;
(2) Has significant social or fiscal consequences;
(3) Involves policy issues of general applicability; or
(4) Is likely to have precedential value.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.08 - Notice of Hearing

Current through Register Vol. 51, No. 14, July 12, 2024
A. Advance Written Notice. If a respondent requests a hearing, or if the Commissioner otherwise determines that a hearing concerning a summary order or a show cause order is appropriate, the Commissioner shall give the parties reasonable advance written notice of the hearing.
B. Content of Notice. The notice of the hearing shall include:
(1) The date, time, place, and nature of the hearing;
(2) The legal basis for the hearing;
(3) A brief statement of the issues;
(4) A summary of the rights and restrictions concerning representation set forth in Regulation .09 of this chapter;
(5) A statement that each respondent may present evidence and may cross-examine witnesses;
(6) A statement that each respondent may request the issuance of subpoenas in accordance with Regulation .13 of this chapter;
(7) A copy of the hearing procedures set forth in this chapter;
(8) A statement that failure by a respondent to appear at the hearing may result in adverse action against that respondent;
(9) A statement that the parties may agree to the evidence and that a respondent may waive the right to appear at the hearing.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.09 - Representation

Current through Register Vol. 51, No. 14, July 12, 2024
A. An individual may appear on the individual's own behalf.
B. A party may be represented by an attorney authorized to practice law in Maryland or, when authorized by law, appear through a representative who is not an attorney. An attorney who is not a member of the Maryland Bar, but is a member in good standing of the Bar of another state, may represent a party if the attorney is specially admitted in accordance with Rule 14 of the Rules Governing Admission to the Bar of Maryland.
C. An attorney who appears in a representative capacity shall enter an appearance by filing a pleading or written notice of appearance setting forth the:
(1) Name, business address, and telephone number of the attorney; and
(2) Name and address of the party represented.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.10 - Addition, Deletion, and Substitution of Parties

Current through Register Vol. 51, No. 14, July 12, 2024
The Commissioner may, upon motion of a party, order the addition, deletion, or substitution of parties.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.11 - Consolidation of Cases

Current through Register Vol. 51, No. 14, July 12, 2024
If separate proceedings involve a common question of law or fact, the Commissioner may consolidate the proceedings in whole or in part.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.12 - Discovery

Current through Register Vol. 51, No. 14, July 12, 2024
A. Document Requests. A party may serve a written document request on any other party requiring that party to produce, within 15 days, for inspection and copying, any documents or tangible items:
(1) Relevant to the subject matter of the case; and
(2) Not privileged.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.13 - Subpoenas

Current through Register Vol. 51, No. 14, July 12, 2024
A. Issuance of Subpoenas. Upon the request of any party, the Commissioner may issue subpoenas requiring the attendance and testimony of witnesses and the production of documents and tangible items in the possession or under the control of the witness.
B. Applications for Subpoenas. An application for issuance of a subpoena shall be made in writing to the Commissioner and shall state:
(1) The name and address of the person to be subpoenaed;
(2) If production of documents or tangible items is sought, a particular description of the documents or tangible items sought; and
(3) The name, address, and telephone number of the party requesting the subpoena.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.14 - Prehearing Conferences

Current through Register Vol. 51, No. 14, July 12, 2024
A. Scheduling of Conference. The Commissioner, upon request of a party or when the Commissioner otherwise believes it appropriate, may require the parties to appear at a specified date, time, and place for a prehearing conference before the date set for hearing.
B. Agenda. A prehearing conference may be held to address the following matters:
(1) Simplification of issues;
(2) Admissions or stipulations of fact;
(3) Requests for official notice;
(4) Discovery disputes;
(5) Preliminary motions;
(6) Admissibility of evidence;
(7) Order of presentation;
(8) Limitation of the number of witnesses;
(9) Exchange of prepared testimony and exhibits between the parties;
(10) Scheduling; and
(11) Other matters that will promote the orderly and prompt conduct of the hearing.
Code of Maryland Regulations › Title 02 - OFFICE OF THE ATTORNEY GENERAL › Subtitle 02 - DIVISION OF SECURITIES › Chapter 02.02.06 - Procedures for Administrative Hearings › Section 02.02.06.15 - Failure to Appear

Current through Register Vol. 51, No. 14, July 12, 2024
A. Conduct of Hearing in Party's Absence. If a party, after receiving notice of a prehearing conference or hearing, fails to appear at the conference or hearing, the Commissioner may proceed to hold the conference or hearing in that party's absence.
B. Default. The Commissioner may also hold the absent party in default and may issue a proposed or final decision and order against the defaulted party.
C. Request for Reconsideration.
(1) A party defaulted as a result of a failure to appear at a prehearing conference or hearing may file a written motion requesting reconsideration by the Commissioner and stating the grounds for the request.
(2) A motion for reconsideration shall be filed within 15 days after service of a default order, or such lesser time as the Commissioner may direct.