Colorado § 11-51-401 Licensing and notice filing requirements

Colorado Statutes

§ 11-51-401 — Licensing and notice filing requirements

Colorado·Title 11 Financial·Art. Securities

(1)A person shall not transact business in this state as a broker-dealer or sales representative unless licensed or exempt from licensing under section 11-51-402. (1.5) A person with a place of business in this state shall not transact business in this state as an investment adviser or investment adviser representative unless such person is licensed as such or exempt from licensing under section 11-51-402. (1.6) A federal covered adviser either with a place of business in this state or who employs or otherwise engages an individual with a place of business in this state to act as an investment adviser representative shall not transact business in this state as a federal covered adviser unless such adviser has filed with the securities commissioner the notice and fee required in

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(1) A person shall not
transact business in this state as a broker-dealer or sales representative unless
licensed or exempt from licensing under section 11-51-402.

(1.5) A person with a place of business in this state shall not transact
business in this state as an investment adviser or investment adviser representative
unless such person is licensed as such or exempt from licensing under section 11-51-402.

(1.6) A federal covered adviser either with a place of business in this state or
who employs or otherwise engages an individual with a place of business in this
state to act as an investment adviser representative shall not transact business in
this state as a federal covered adviser unless such adviser has filed with the
securities commissioner the notice and fee required in sections 11-51-403 and 11-51-404.

(2) Neither a broker-dealer nor an issuer shall employ or otherwise engage
an individual to act as a sales representative in this state unless the sales
representative is licensed or exempt from licensing under section 11-51-402.

(2.5) An investment adviser shall not employ or otherwise engage any
individual with a place of business in this state to act as an investment adviser
representative in this state unless such individual is licensed in accordance with
section 11-51-403 or is exempt from licensing under section 11-51-402 (1).

(3) No broker-dealer, investment adviser, or issuer shall employ or otherwise
engage a person to participate in any activity in this state contrary to an order by
the securities commissioner applicable to that person under section 11-51-410. A
broker-dealer, investment adviser, or issuer does not violate this subsection (3) if
the broker-dealer, investment adviser, or issuer sustains the burden of proof that it
did not know and in the exercise of reasonable care could not have known of the
order. Upon request from a broker-dealer, investment adviser, or issuer and for
good cause shown, the securities commissioner may waive the prohibition of this
subsection (3) with respect to a person subject to an order under section 11-51-410.

(4) No person shall act as an investment adviser for a local government
investment pool trust fund under article 75 of title 24, C.R.S., unless the person has
first notified the securities commissioner by filing the form prescribed by the
securities commissioner.

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Legislative History

Source: L. 90: Entire article R&RE, p. 720, � 1, effective July 1. L. 98: (1.5), (1.6), (2.5), and (4) added and (3) amended, p. 550, � 4, effective January 1, 1999.