§5408. Termination of employment or association of agent and investment adviser

Link to law: http://legislature.vermont.gov/statutes/section/09/150/05408
Published: 2015

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The Vermont Statutes Online



Title

09

:
Commerce and Trade






Chapter

150

:
SECURITIES ACT






Subchapter

004
:
BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES, AND FEDERAL COVERED INVESTMENT ADVISERS










 

§

5408. Termination of employment or association of agent and investment adviser representative

and transfer of employment or association

(a) If an agent

registered under this chapter terminates employment by or association with a

broker-dealer or issuer, or if an investment adviser representative registered

under this chapter terminates employment by or association with an investment

adviser or federal covered investment adviser, or if either registrant

terminates activities that require registration as an agent or investment

adviser representative, the broker-dealer, issuer, investment adviser, or

federal covered investment adviser shall promptly file a notice of termination.

If the registrant learns that the broker-dealer, issuer, investment adviser, or

federal covered investment adviser has not filed the notice, the registrant may

do so.

(b) If an agent

registered under this chapter terminates employment by or association with a

broker-dealer registered under this chapter and begins employment by or

association with another broker-dealer registered under this chapter; or if an

investment adviser representative registered under this chapter terminates

employment by or association with an investment adviser registered under this

chapter or a federal covered investment adviser that has filed a notice under

section 5405 of this title and begins employment by or association with another

investment adviser registered under this chapter or a federal covered

investment adviser that has filed a notice under section 5405 of this title;

then upon the filing by or on behalf of the registrant, within 30 days after

the termination, of an application for registration that complies with the

requirement of subsection 5406(a) of this title and payment of the filing fee required

under section 5410 of this title, the registration of the agent or investment

adviser representative is:

(1) immediately

effective as of the date of the completed filing, if the agent's Central

Registration Depository record or successor record or the investment adviser

representative's Central Registration Depository record or successor record

does not contain a new or amended disciplinary disclosure within the previous

12 months; or

(2) temporarily

effective as of the date of the completed filing, if the agent's Central

Registration Depository record or successor record or the investment adviser

representative's Central Registration Depository record or successor record

contains a new or amended disciplinary disclosure within the preceding 12 months.

(c) The

Commissioner may withdraw a temporary registration if there are or were grounds

for discipline as specified in section 5412 of this title and the Commissioner

does so within 30 days after the filing of the application. If the Commissioner

does not withdraw the temporary registration within the 30-day period,

registration becomes automatically effective on the 31st day after filing.

(d) The

Commissioner may prevent the effectiveness of a transfer of an agent or

investment adviser representative under subdivision (b)(1) or (2) of this

section based on the public interest and the protection of investors.

(e) If the

Commissioner determines that a registrant or applicant for registration is no

longer in existence or has ceased to act as a broker-dealer, agent, investment

adviser, or investment adviser representative, or is the subject of an

adjudication of incapacity or is subject to the control of a committee,

conservator, or guardian, or cannot reasonably be located, a rule adopted or

order issued under this chapter may require that the registration be canceled

or terminated or the application denied. The Commissioner may reinstate a

canceled or terminated registration, with or without hearing, and may make the

registration retroactive. (Added 2005, No. 11, § 1, eff. July 1, 2006; amended

2007, No. 49, § 22.)
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