reglab/statecodes huggingface dataset:
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 3 - BROKER-DEALER AND AGENTS RECORDS › Section 12.11.3.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Section
				  58-13C-605
				  A NMSA 1978 authorizes the director to make, amend and rescind rules as are
				  necessary to carry out the provisions of the New Mexico Uniform Securities Act
				  Sections
				  58-13C-101
				  to 701 NMSA 1978, hereinafter referred to in this Chapter 11 as the "New Mexico
				  Uniform Securities Act".
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 3 - BROKER-DEALER AND AGENTS RECORDS › Section 12.11.3.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
January 1, 2010, unless a later date is cited at the end of a
				  section.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 3 - BROKER-DEALER AND AGENTS RECORDS › Section 12.11.3.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
To implement new rules and revise existing rules to better
				  reflect the realities of current financial, commercial and regulatory
				  principles and practices affecting the securities markets.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 3 - BROKER-DEALER AND AGENTS RECORDS › Section 12.11.3.8 - BROKER-DEALERS REQUIRED BY FEDERAL LAW TO KEEP RECORDS

Current through Register Vol. 35, No. 13, July 16, 2024
Every registered broker-dealer subject to the Securities
				  Exchange Act of 1934 ("the 1934 Act") and which is a member of a
				  self-regulatory organization shall prepare and keep current the records
				  required by the 1934 Act and the appropriate self-regulatory
				  organization.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 3 - BROKER-DEALER AND AGENTS RECORDS › Section 12.11.3.10 - BROKER-DEALERS PRESERVATION OF RECORDS

Current through Register Vol. 35, No. 13, July 16, 2024
Every registered broker-dealer not subject to
				  12.11.3.8
				  NMAC shall preserve for at least five years, the most recent two years in an
				  easily accessible place, all records required under
				  12.11.3.9
				  NMAC except that records required under Subsections J and L of
				  12.11.3.9
				  NMAC shall be preserved by the broker-dealer for at least five years after the
				  closing of the account; and records required under Subsection N of
				  12.11.3.9
				  NMAC shall be preserved by the broker-dealer for at least five years after
				  withdrawal or expiration of its registration in this state. After a record or
				  other document has been preserved for one year as required under this section,
				  a microfilm copy thereof may be substituted for the remainder of the required
				  period.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 3 - BROKER-DEALER AND AGENTS RECORDS › Section 12.11.3.11 - BROKER-DEALER BRANCH OFFICE RECORDS

Current through Register Vol. 35, No. 13, July 16, 2024
Except as provided in Subsection E below, every branch office
				  of a registered broker-dealer not subject to
				  12.11.3.8
				  NMAC shall prepare and keep current the following records:
A. copies of the records described in
				Subsections E, G, H, I, J and O of 12.11.3.9 NMAC;
B. blotters (or other records of original
				entry) setting forth an itemized daily record of all purchases and sales of
				securities; this requirement may be satisfied by maintaining a unit filing
				system where the order ticket information (described in Subsection E of
				12.11.3.9 NMAC) required in Subsection A of 12.11.3.11 NMAC is accumulated and
				segregated on a daily basis;
C.
				blotters (or other records of original entry) setting forth an itemized daily
				record of all receipts and deliveries of securities (including certificate
				numbers) and all receipts and disbursements of cash;
D. copies of customer monthly or other
				periodic statements that are issued by the broker-dealer or that are furnished
				to the broker-dealer by the issuer of a security purchased by a customer of the
				broker-dealer; and
E. branch
				offices of broker-dealers engaged solely in the offer and sale of either
				securities issued by open-end investment companies, face-amount certificate
				companies or unit investment trusts registered under the Investment Company Act
				of 1940, or the securities of direct participation program issuers, or both,
				shall prepare and keep current copies of those records described in Subsections
				C, E, H, I and J of 12.11.3.9 NMAC.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 3 - BROKER-DEALER AND AGENTS RECORDS › Section 12.11.3.12 - BROKER-DEALER PRESERVATION OF BRANCH OFFICE RECORDS

Current through Register Vol. 35, No. 13, July 16, 2024
The records required in
				  12.11.3.11
				  NMAC shall be preserved at the branch office for a period of not less than five
				  years, the most recent two years in an easily accessible place, except that
				  customer new account forms shall be preserved for a period of not less than
				  three years after the closing of the account. After a record or document has
				  been preserved for one year as required under this subsection, a microfilm copy
				  thereof may be substituted for the remainder of the required
				  period.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 3 - BROKER-DEALER AND AGENTS RECORDS › Section 12.11.3.13 - RECORDS OF CLEARING BROKER-DEALER

Current through Register Vol. 35, No. 13, July 16, 2024
This part does not require a registered broker-dealer to make
				  and keep such records of transactions cleared for the registrant by another
				  registered broker-dealer as are customarily made and kept by the clearing
				  broker-dealer.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 3 - BROKER-DEALER AND AGENTS RECORDS › Section 12.11.3.14 - DIRECTOR MAY ORDER EXEMPTION

Current through Register Vol. 35, No. 13, July 16, 2024
The director may by order exempt any broker-dealer from all
				  or part of the requirements of this part, either unconditionally or upon
				  specified conditions, if by reason of the special nature of its business, the
				  director finds the issuance of the order is necessary or appropriate in the
				  public interest or for the protection of investors.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 3 - BROKER-DEALER AND AGENTS RECORDS › Section 12.11.3.15 - AGENT RECORDS

Current through Register Vol. 35, No. 13, July 16, 2024
Every registered agent shall have and keep current the
				  following records relating to customer securities transactions, unless the
				  director by order exempts an agent from all or part of the requirements of this
				  part:
A. the customer information form
				as set forth in Subsection J of 12.11.3.9 NMAC;
B. a securities holding record for each
				customer including the customer's name, address, telephone number, age,
				occupation, investment objectives and a chronological listing of the names and
				amount of all securities purchased or sold for the account of the customer,
				including the date of each transaction, and the unit purchase or sale price;
				and
C. the record requirements may
				not be satisfied by maintaining a file of confirmations unless permitted by
				order of the director.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 4 - BROKER-DEALER AND AGENTS RULES OF CONDUCT AND PROHIBITED BUSINESS PRACTICES › Section 12.11.4.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Regulation and Licensing Department - New Mexico Securities
				  Division.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 4 - BROKER-DEALER AND AGENTS RULES OF CONDUCT AND PROHIBITED BUSINESS PRACTICES › Section 12.11.4.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
All persons, whether natural or legal entities, that transact
				  business in New Mexico as a broker-dealer or an issuer of securities, and their
				  agents.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 4 - BROKER-DEALER AND AGENTS RULES OF CONDUCT AND PROHIBITED BUSINESS PRACTICES › Section 12.11.4.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Section
				  58-13C-605
				  A NMSA 1978 authorizes the director to make, amend and rescind rules as are
				  necessary to carry out the provisions of the New Mexico Uniform Securities Act,
				  Sections
				  58-13C-101
				  to 701 NMSA 1978, hereinafter referred to in this Chapter 11 as the "New Mexico
				  Uniform Securities Act".
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 4 - BROKER-DEALER AND AGENTS RULES OF CONDUCT AND PROHIBITED BUSINESS PRACTICES › Section 12.11.4.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
January 1, 2010, unless a later date is cited at the end of a
				  section.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 4 - BROKER-DEALER AND AGENTS RULES OF CONDUCT AND PROHIBITED BUSINESS PRACTICES › Section 12.11.4.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
To implement new rules and revise existing rules to better
				  reflect the realities of current financial, commercial and regulatory
				  principles and practices affecting the securities markets.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 4 - BROKER-DEALER AND AGENTS RULES OF CONDUCT AND PROHIBITED BUSINESS PRACTICES › Section 12.11.4.8 - WRITTEN CONFIRMATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
Except as provided in
				  12.11.4.9
				  NMAC, each broker-dealer shall give or send to the customer a written
				  confirmation, promptly after execution, and before settlement, of each
				  transaction. The confirmation shall set forth:
A. a description of the security purchased or
				sold, the date of the transaction, the price at which the security was
				purchased or sold and any commission charged;
B. whether the broker-dealer was acting for
				its own account, as agent for the customer, as agent for some other person, or
				as agent for both the customer and some other person;
C. when the broker-dealer is acting as agent
				for the customer, either the name of the person from whom the security was
				purchased or to whom it was sold, or the fact that the information will be
				furnished upon the request of the customer, if the information is known to, or
				with reasonable diligence may be ascertained by, the broker-dealer;
				and
D. whether the transaction was
				unsolicited.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 4 - BROKER-DEALER AND AGENTS RULES OF CONDUCT AND PROHIBITED BUSINESS PRACTICES › Section 12.11.4.9 - COMPLIANCE WITH RULE 10b-10

Current through Register Vol. 35, No. 13, July 16, 2024
If applicable, compliance with Rule 10b-10 of the Securities
				  Exchange Act of 1934 shall be deemed compliance with
				  12.11.4.8
				  NMAC.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 4 - BROKER-DEALER AND AGENTS RULES OF CONDUCT AND PROHIBITED BUSINESS PRACTICES › Section 12.11.4.10 - WRITTEN SUPERVISORY PROCEDURES

Current through Register Vol. 35, No. 13, July 16, 2024
Each broker-dealer shall establish and keep current a set of
				  written supervisory procedures and a system for applying such procedures, which
				  may be reasonably expected to prevent and detect any violations of the New
				  Mexico Uniform Securities Act and rules and orders thereunder. The procedures
				  shall include the designation by name or title of a number of supervisory
				  employees reasonable in relation to the number of its registered agents,
				  offices and transactions in this state. A complete set of the procedures and
				  system for applying them shall be kept and maintained at every branch
				  office.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 4 - BROKER-DEALER AND AGENTS RULES OF CONDUCT AND PROHIBITED BUSINESS PRACTICES › Section 12.11.4.11 - CONTRACT WAIVING RIGHTS PROHIBITED

Current through Register Vol. 35, No. 13, July 16, 2024
A broker-dealer shall not enter into any contract with a
				  customer if the contract contains any condition, stipulation or provision
				  binding the customer to waive any rights under the New Mexico Uniform
				  Securities Act or any rule or order thereunder. Any such condition, stipulation
				  or provision is void.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 4 - BROKER-DEALER AND AGENTS RULES OF CONDUCT AND PROHIBITED BUSINESS PRACTICES › Section 12.11.4.12 - NET WORTH WITHDRAWALS PROHIBITED

Current through Register Vol. 35, No. 13, July 16, 2024
No broker-dealer shall permit or effect a withdrawal of any
				  part of its net worth, including subordinated indebtedness, whether by
				  redemption, retirement, repurchase, repayment, or otherwise, that would cause
				  its net capital or its aggregate indebtedness to violate Subsections A or B of
				  12.11.2.18
				  NMAC, without prior written approval of the director.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 4 - BROKER-DEALER AND AGENTS RULES OF CONDUCT AND PROHIBITED BUSINESS PRACTICES › Section 12.11.4.13 - CUSTOMER COPIES OF CONTRACTS

Current through Register Vol. 35, No. 13, July 16, 2024
Each broker-dealer shall provide each customer with a
				  conformed copy of all contracts or agreements between the broker-dealer and the
				  customer, and a copy of the customer information forms prescribed under
				  Subsections J and K of
				  12.11.3.9
				  NMAC, not later than 15 days after the initial securities transaction effected
				  in the customer's account.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 4 - BROKER-DEALER AND AGENTS RULES OF CONDUCT AND PROHIBITED BUSINESS PRACTICES › Section 12.11.4.14 - BROKER-DEALER ASSOCIATION WITH A DEPOSITORY INSTITUTION

Current through Register Vol. 35, No. 13, July 16, 2024
No broker-dealer may associate with a depository institution
				  by contract, agreement or other means unless promotional and
				  account-establishing functions are performed or supervised by persons
				  registered as agents representing the broker-dealer.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 4 - BROKER-DEALER AND AGENTS RULES OF CONDUCT AND PROHIBITED BUSINESS PRACTICES › Section 12.11.4.16 - PROHIBITED BUSINESS PRACTICES BY AGENTS

Current through Register Vol. 35, No. 13, July 16, 2024
The following are deemed to be unethical or dishonest conduct
				  or practices by an agent under Section
				  58-13C-412
				  C(13) NMSA 1978 without limiting those terms to the practices specified
				  herein:
A. borrowing money or
				securities from, or lending money or securities to, a customer;
B. acting as a custodian for money,
				securities or an executed stock power of a customer;
C. effecting securities transactions with a
				customer not recorded on the regular books or records of the broker-dealer
				which the agent represents, unless the transactions are disclosed to, and
				authorized in writing by, the broker-dealer prior to execution of the
				transactions;
D. effecting
				transactions in securities for an account operating under a fictitious name,
				unless disclosed to, and permitted in writing by, the broker-dealer or issuer
				which the agent represents;
E.
				sharing directly or indirectly in profits or losses in the account of any
				customer without first obtaining written authorization of the customer and the
				broker-dealer which the agent represents;
F. dividing or otherwise splitting
				commissions, profits or other compensation receivable in connection with the
				purchase or sale of securities in this state with any person not so registered
				as an agent for the same broker-dealer, or for a broker-dealer under direct or
				indirect common control;
G. using
				advertising describing or relating to the agent's securities business unless
				the advertising clearly identifies the name of the agent's employing
				broker-dealer or issuer;
H.
				misrepresenting the services of a registered investment adviser on whose behalf
				the agent is soliciting business or accounts; and
I. engaging in any of the practices specified
				in Subsections B, C, D, E, F, G, H, O, P, Q, R, T and U of 12.11.4.15
				NMAC.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Regulation and Licensing Department - New Mexico Securities
				  Division.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
All persons, whether natural or legal entities, that transact
				  business in New Mexico as an investment adviser and their
				  representatives.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Section
				  58-13C-605
				  A NMSA 1978 authorizes the director to adopt, amend and repeal rules necessary
				  or appropriate to carry out the provisions of the New Mexico Uniform Securities
				  Act, Sections
				  58-13C-101
				  to 701 NMSA 1978, hereinafter referred to in this Chapter 11 as the "New Mexico
				  Uniform Securities Act".
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
January 1, 2010, unless a later date is cited at the end of a
				  section.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
To implement new rules and revise existing rules to better
				  reflect the realities of current financial, commercial and regulatory
				  principles and practices affecting the securities markets.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
The following definitions apply throughout this part.
A. "Custody" means holding, directly or
				indirectly, client funds or securities, or having any authority to obtain
				possession of them or having the ability to appropriate them.
(1) Custody includes:
(a) possession of client funds or securities,
				unless received inadvertently and returned to the sender promptly, but in any
				case within three business days of receiving them;
(b) any arrangement (including a general
				power of attorney) under which the investment adviser is authorized or
				permitted to withdraw client funds or securities maintained with a custodian
				upon the adviser's instruction to the custodian; and
(c) any capacity (such as a general partner
				of a limited partnership, managing member of a limited liability company or a
				comparable position for another type of pooled investment vehicle, or trustee
				of a trust) that gives the investment adviser, an owner of the investment
				adviser, or a supervised person of the investment adviser legal ownership of or
				access to client funds or securities.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.8 - ELECTRONIC FILING WITH DESIGNATED ENTITY

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Designation
. Pursuant to
				Section
				58-13C-406
				A, the director designates the IARD and the CRD to receive and store filings
				and collect related fees from investment advisers and investment adviser
				representatives on behalf of the director.
B.
Use of the IARD and the CRD
.
				Unless otherwise provided, all investment adviser and investment adviser
				representative applications, amendments, reports, notices, related filings and
				fees required to be filed with the director shall be filed electronically with
				and transmitted to the IARD or the CRD.
C.
Electronic signature
. When a
				signature or signatures are required by the particular instructions of any
				filing made through the IARD or the CRD, the applicant or a duly authorized
				officer of the applicant, as required, shall affix his or her electronic
				signature to the filing by typing his or her name in the appropriate fields and
				submitting the filing to the IARD or the CRD. Submission of a filing in this
				manner shall constitute evidence of legal signature by any individuals whose
				names are typed on the filing.
D.
Non-IARD and non-CRD filings
. Notwithstanding Subsection B of
				this section, any documents or fees required to be filed with the director that
				are not permitted to be filed with or cannot be accepted by the IARD or the CRD
				shall be filed directly with the director.
E.
Hardship exemptions
. This
				subsection provides two "hardship exemptions" from the requirements to make
				electronic filings.
(1)
Temporary
				hardship exemption
.
(a) Investment
				advisers registered or required to be registered under the New Mexico Uniform
				Securities Act that experience unanticipated technical difficulties that
				prevent submission of an electronic filing to the IARD may request a temporary
				hardship exemption from the requirements to file electronically.
(b) To request a temporary hardship
				exemption, the investment adviser must:
(i)
				file the form ADV-H in paper format with the director no later than one
				business day after the filing that is the subject of the form ADV-H was due;
				and
(ii) submit the filing that is
				the subject of the form ADV-H in electronic format to the IARD no later than
				seven business days after the filing was due.
(c) The temporary hardship exemption will be
				deemed effective upon receipt by the director of the complete form ADV-H.
				Multiple temporary hardship exemption requests within the same calendar year
				may be disallowed by the director.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.9 - APPLICATION FOR INVESTMENT ADVISER REGISTRATION

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Initial application
. The
				application for initial registration as an investment adviser pursuant to
				Section
				58-13C-406
				A shall be made by completing the form ADV in accordance with the form
				instructions and by filing the form with the IARD. The application for initial
				registration shall also include the following:
(1) a financial statement demonstrating
				compliance with the requirements of 12.11.5.23 NMAC, if necessary;
(2) the fee required by Section
				58-13C-410
				C;
(3) for sole proprietors, proof
				of compliance by the applicant with the examination requirements of 12.11.5.14
				NMAC unless such proof is available to the director through the CRD;
				and
(4) any other information
				required by the director.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.10 - APPLICATION FOR INVESTMENT ADVISER REPRESENTATIVE REGISTRATION

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Initial
				application
. The application for initial registration pursuant to
				Section 59-13C-406 A shall be made by completing form U-4 in accordance with
				the form instructions and by filing the form U-4 with the CRD. The application
				for initial registration shall also include the following:
(1) proof of compliance by the investment
				adviser representative applicant with the examination requirements set out in
				12.11.5.14 NMAC unless such proof is available to the director through the CRD;
				and
(2) the fee required by Section
				58-13C-410
				D.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.11 - NOTICE FILING REQUIREMENTS FOR FEDERAL COVERED INVESTMENT ADVISERS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Notice
				Filing
. The notice filing for a federal covered investment adviser under
				Section
				58-13C-405
				C of the New Mexico Uniform Securities Act shall be filed with the IARD on an
				executed form ADV. A notice filing shall be deemed filed when the fee required
				by Section
				58-13C-410
				E and the complete form ADV are filed with and accepted by the IARD on behalf
				of the state.
B.
Annual
				renewal
. The annual renewal of the notice filing for a federal covered
				investment adviser pursuant to Section
				58-13C-405
				C shall be filed with the IARD. The renewal of the notice filing for a federal
				covered investment adviser shall be deemed filed when the fee required by
				Section
				58-13C-410
				E is filed with and accepted by the IARD on behalf of the state.
C.
Updates and amendments
.
(1) A federal covered investment adviser
				shall file with the IARD, in accordance with the instructions in the form ADV,
				any amendments to the federal covered investment adviser's form ADV by filing
				an annual updating amendment within 90 days after the end of its fiscal
				year.
(2) In addition to filing its
				annual updating amendment, the federal covered investment adviser shall amend
				its form ADV by filing additional amendments promptly with the IARD if:
(a) information provided in response to items
				1, 3, 9, or 11 of part 1A or items 1, 2.A through 2.F, or 2.I or part 1.B of
				form ADV become inaccurate in any way;
(b) information provided in response to items
				4, 8, 10 of part 1.A or item 2.G of part 1.B of form ADV become materially
				inaccurate; or
(c) information
				provided in its brochure becomes materially inaccurate.
(3) An amendment shall be considered to be
				filed promptly if filed within 30 days of the event that requires the filing of
				the amendment.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.12 - INVESTMENT ADVISER BROCHURE RULE

Current through Register Vol. 35, No. 13, July 16, 2024
A.
DEFINITIONS.
For the purpose
				of this section:
(1) "contract for impersonal
				advisory services" means any contract relating solely to the provision of
				investment advisory services:
(a) by means of
				written material or oral statements which do not purport to meet the objectives
				or needs of specific individuals or accounts;
(b) through the issuance of statistical
				information containing no expression of opinion as to the investment merits of
				a particular security; or
(c) any
				combination of the foregoing services;
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.13 - TERMINATION, TRANSFER AND WITHDRAWAL

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Termination of investment adviser
				representative's employment or association
. Pursuant to Section
				58-13C-408
				A, if an investment adviser representative registered under the New Mexico
				Uniform Securities Act terminates employment by or association with an
				investment adviser or a federal covered investment adviser or terminates
				activities that require registration as an investment adviser representative,
				the investment adviser or federal covered investment adviser shall complete the
				form U-5 in accordance with the form instructions and promptly file the form
				with CRD. If the investment adviser representative learns that the investment
				adviser or federal covered investment adviser has not filed the form, then the
				investment adviser representative shall promptly file it. The form will be
				considered to be filed promptly if it is filed within 30 days of the
				termination.
B.
Transfer of
				investment adviser representative's employment or association
. Pursuant
				to Section
				58-13C-408
				B, if an investment adviser representative registered under the New Mexico
				Uniform Securities Act terminates employment by or association with an
				investment adviser or federal covered investment adviser and begins employment
				by or association with another investment adviser or federal covered investment
				adviser, an initial application for registration must by filed in compliance
				with Section
				58-13C-406
				and 12.11.5.10 NMAC.
C.
Withdrawal
.
(1) The application for
				withdrawal of a registration by an investment adviser pursuant to Section
				58-13C-409
				shall be made by following the instructions on form ADV-W and filing the form
				ADV-W with the IARD.
(2) The
				application for withdrawal of registration as an investment adviser
				representative pursuant to Section
				58-13C-409
				shall be made by following the instructions on form U-5 and filing the form U-5
				with the CRD.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.14 - EXAMINATION REQUIREMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
An individual applying to be registered as an investment
				  adviser or investment adviser representative under the New Mexico Uniform
				  Securities Act shall provide the director with proof of obtaining a passing
				  score on either:
A. the uniform
				investment adviser law examination (series 65 - post 1999 version);
				or,
B. the general securities
				representative examination (series 7) and the uniform combined state law
				examination (series 66 - post 1999 version).
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.15 - LIMITED REGISTRATION

Current through Register Vol. 35, No. 13, July 16, 2024
Any individual whose proposed advisory activities will be
				  restricted shall provide the director with proof of obtaining a passing score
				  on the uniform combined state law examination (series 66 - post 1999 version)
				  and each examination in the following paragraphs that relates to the
				  applicant's proposed activities:
A.
				the investment company products/variable contracts representative examination
				(series 6);
B. the limited
				registered representative examination (series 17);
C. the direct participation programs
				representative examination (series 22);
D. the municipal securities representative
				examination (series 52);
E. the
				corporate securities representative examination (series 62);
F. the government securities limited
				representative examination (series 72);
G. the Canada modules of the series 7
				examination (series 37 and 38);
H.
				the Japan module of the series 7 examination (series 47).
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.16 - EXAMINATION REQUIREMENTS WAIVER

Current through Register Vol. 35, No. 13, July 16, 2024
The examination requirement in
				  12.11.5.14
				  NMAC is waived for any applicant who meets the criteria set forth in any one of
				  the paragraphs in this section:
A. the
				applicant has been licensed or registered within two years prior to the date
				the application is filed as an investment adviser or investment adviser
				representative under the securities law of another state requiring examinations
				equivalent to the examinations designated in 12.11.5.14 NMAC;
B. the applicant has been licensed or
				registered within two years prior to the date the application is filed as an
				investment adviser or investment adviser representative under the securities
				law of another state requiring examinations equivalent to:
(1) either the uniform investment adviser law
				examination (series 65 - pre 2000 version) or the uniform combined state law
				examination (series 66 - pre 2000 version); and
(2) either the national association of
				securities dealers non-member general securities examination (series 2) or the
				general securities registered representative examination (series 7);
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.17 - PROFESSIONAL DESIGNATION WAIVERS

Current through Register Vol. 35, No. 13, July 16, 2024
The examination requirements of sections
				  12.11.5.14
				  NMAC and
				  12.11.5.18
				  NMAC shall not apply to an individual who currently holds at least one of the
				  following professional designations:
A. chartered financial analyst certification
				(CFA);
B. chartered investment
				counselor certification (CIC);
C.
				certified financial planner designation (CFP);
D. chartered financial consultant
				certification (ChFC); or
E.
				certified public accountant with a personal financial specialist designation
				(PFS).
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.18 - EXAMINATION REQUIREMENTS - PRINCIPAL

Current through Register Vol. 35, No. 13, July 16, 2024
Prior to initial registration as an investment adviser, and
				  at all times thereafter, the applicant is required to have at least one
				  designated supervisor who, in addition to passing the examinations required in
				  12.11.5.14
				  NMAC, has passed, within two years prior to the date the application for
				  registration is filed in this state, the general securities principal
				  examination (series 24) or the general securities sales supervisor
				  qualification examination (series 9/10), unless waived under
				  12.11.5.17
				  NMAC. An investment adviser which does not have more than one person associated
				  with the firm who is registered pursuant to the New Mexico Uniform Securities
				  Act is not required to have a designated supervisor and is not required pass
				  examinations in addition to those required in
				  12.11.5.14
				  NMAC.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.19 - LIMITED REGISTRATION

Current through Register Vol. 35, No. 13, July 16, 2024
An applicant may apply for a limited registration to engage
				  in activities limited to one or more of the categories set forth in
				  12.11.5.15
				  NMAC, provided the applicant has passed the examination in the category for
				  which the applicant is applying and the applicant has submitted a written
				  statement to the director setting forth how the applicant's activities will be
				  limited in this state and, in the case of an investment adviser representative
				  seeking a limited registration, how the representative will be adequately
				  supervised.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.20 - SOLICITORS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Definitions for
				purposes of this section:
(1) "solicitor"
				means any individual, person or entity who, directly or indirectly, receives a
				cash fee or any other economic benefit for soliciting, referring, offering or
				otherwise negotiating for the sale or selling of investment advisory services
				to clients on behalf of an investment adviser;
(2) "client" includes any prospective
				client.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.21 - NOT COMPLETED AND WITHDRAWN APPLICATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
Any application for registration that is not completed or
				  withdrawn within six months from the date it is initially received may be
				  deemed materially incomplete and the director may issue an order denying the
				  application.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.22 - CUSTODY OF CLIENT FUNDS OR SECURITIES BY INVESTMENT ADVISERS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Section
				definitions
. For purposes of this section:
(1) "independent representative" means a
				person who:
(a) acts as agent for an advisory
				client, including in the case of a pooled investment vehicle, for limited
				partners of a limited partnership, members of a limited liability company, or
				other beneficial owners of another type of pooled investment vehicle, and by
				law or contract is obligated to act in the best interest of the advisory client
				or the limited partners, members or other beneficial owners;
(b) does not control, is not controlled by,
				and is not under common control with the adviser; and
(c) does not have, and has not had within the
				past two years, a material business relationship with the adviser;
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.23 - MINIMUM FINANCIAL REQUIREMENTS FOR INVESTMENT ADVISERS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
All investment advisers
. An
				investment adviser registered or required to be registered under the New Mexico
				Uniform Securities Act that shall maintain at all times a minimum net worth of
				$5,000 or such amount as may be required by any other applicable subsection of
				this rule, whichever requirement is higher.
B.
Investment advisers with
				custody
. An investment adviser registered or required to be registered
				under the Act that has custody of client funds or securities shall maintain at
				all times a minimum net worth of $2,000,000, or post a surety bond in the
				amount set by order of the director up to a maximum of $2,000,000.
C.
Investment advisers with
				discretionary authority
. An investment adviser registered or required to
				be registered under the New Mexico Uniform Securities Act that has
				discretionary authority over client funds or securities but does not have
				custody of client funds or securities shall maintain at all times a minimum net
				worth of $10,000, unless the director by order approves a lesser minimum net
				worth.
D.
Net worth less
				than minimum requirement
. Unless otherwise exempted, as a condition of
				the right to transact business in this state, every investment adviser
				registered or required to be registered under the New Mexico Uniform Securities
				Act shall by the close of business on the next business day notify the director
				if that investment adviser's net worth is less than the minimum required. After
				transmitting such notice, each investment adviser shall file by the close of
				business on the next business day a report with the director of its financial
				condition, including the following:
(1) a
				trial balance of all ledger accounts;
(2) a statement of all client funds or
				securities which are not segregated;
(3) a computation of the aggregate amount of
				client ledger debit balances; and
(4) a statement as to the number of client
				accounts.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.24 - USE OF THE INTERNET FOR GENERAL DISSEMINATION OF INFORMATION ON PRODUCTS AND SERVICES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Investment advisers and investment adviser representatives who use the internet
				to distribute information on available products and services through
				communications made on the internet directed generally to anyone having access
				to the internet and transmitted through internet communications shall not be
				considered to be "transacting business" in this state for purposes of Section
				58-13C-403
				A based solely on that fact, provided that:
(1) the internet communication contains a
				legend in which it is clearly stated that:
(a)
				the investment adviser or investment adviser representative in question may
				only transact business in this state if first registered, excluded, or exempted
				from state investment adviser or investment adviser representative registration
				requirements; and
(b) follow-up,
				individualized responses to persons in this state by the investment adviser or
				investment adviser representative that involve either effecting or attempting
				to effect transactions in securities, or rendering of personalized investment
				advice for compensation, will not be made without compliance with state
				investment adviser or investment adviser representative registration
				requirements or an applicable exemption or exclusion;
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.25 - REPORTING REQUIREMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Each
				investment adviser shall file annually with the director at the time when the
				renewal report and fee are due, a completed form ADV-E and a financial
				statement, prepared in accordance with generally accepted accounting principles
				and certified by an independent certified public accountant, showing the
				financial condition of such investment adviser as of the most recent
				practicable date. Investment advisers who do not retain custody of clients'
				funds or securities may file unaudited financial statements and need not file
				form ADV-E.
B. Each investment
				adviser shall file with the director a copy of any complaint related to its
				business, transactions, or operations naming the investment adviser or any of
				its partners, officers or investment adviser representatives as defendants in
				any civil or criminal proceeding, or in any administrative or disciplinary
				proceeding by any public or private regulatory agency, within 20 days of the
				date the complaint is served on the investment adviser; a copy of any answer or
				reply to the complaint filed by the investment adviser within ten days of the
				date the answer or reply is filed; and a copy of any decision, order or
				sanction made with respect to any such proceeding within 20 days of the date
				the decision, order or sanction is rendered.
C. Each investment adviser, using the
				appropriate schedule to form ADV, shall file with the director a notice of
				transfer of control or change of name not less than 30 days prior to the date
				on which the transfer of control or change of name is to become effective, or
				such shorter period as the director may permit.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.26 - DENIAL, SUSPENSION AND REVOCATION

Current through Register Vol. 35, No. 13, July 16, 2024
Any order denying, suspending, revoking, canceling or
				  limiting the registration of, and any order barring, an investment adviser or
				  investment adviser representative may include such other sanctions as the
				  director finds appropriate.
New Mexico Administrative Code › Title 12 - TRADE, COMMERCE AND BANKING › Chapter 11 - SECURITIES › Part 5 - INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES AND FEDERAL COVERED ADVISERS › Section 12.11.5.27 - WITHDRAWAL OF REGISTRATION

Current through Register Vol. 35, No. 13, July 16, 2024
A. An
				application for withdrawal of the registration of an investment adviser,
				registered under the New Mexico Uniform Securities Act, shall be filed by the
				registrant on form ADV-W and shall include a report on the status of all
				customer accounts of the registrant in this state and any additional
				information the director may require.
B. An application for withdrawal of the
				registration of an investment adviser representative, registered under the New
				Mexico Uniform Securities Act, shall be filed with the director on form U-5 by
				the investment adviser within 15 days of the termination of the
				representative's employment.