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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.)