(1) Except as otherwise provided in this
section, articles 51 and 52 of this title, as said articles existed prior to July 1, 1990,
exclusively govern all suits, actions, prosecutions, or proceedings which are
pending or may be initiated on the basis of facts or circumstances occurring prior to
July 1, 1990; except that no civil suit or action may be maintained to enforce any
liability under such prior law unless brought within any period of limitation which
applied when the cause of action accrued.
(2) All registrations of securities under such prior law in effect immediately
prior to July 1, 1990, shall remain in effect after said date subject to revocation,
termination, or withdrawal as provided under such prior law and subject to all
administrative orders and all conditions relating to such registrations as were in
effect under such prior law.
(3) Such prior law applies to any offer to sell or sale made no later than
January 1, 1991, pursuant to an offering begun in good faith before July 1, 1990, on
the basis of an exemption available under said prior law.
(4) (a) Every person registered or exempt from registration as a broker,
dealer, principal, or representative under articles 51 and 52 of this title, as said
articles existed prior to July 1, 1990, shall be automatically licensed as a broker-dealer or sales representative, as the case may be, under this article on July 1, 1990,
subject to all fines, censures, suspensions, revocations, conditions, or limitations
imposed upon or in connection with such registration or exemption or upon such
person, as if imposed upon or in connection with a license under this article, so long
as such sanctions would have remained in effect under articles 51 and 52 of this
title, as said articles existed prior to July 1, 1990. Such sanctions shall continue to
be governed by such prior law.
(b) There are no grounds for the denial of automatic licensing under
paragraph (a) of this subsection (4). After July 1, 1990, every person automatically
licensed under paragraph (a) of this subsection (4) shall comply with the provisions
of this article as if such person's license had been originally obtained by application
under the provisions of this article.
(c) No proceeding under section 11-51-410 may be initiated by the securities
commissioner against any person who is licensed pursuant to paragraph (a) of this
subsection (4) if the proceeding is based upon:
(I) Any plea, conviction, decree, order, or other action described in section 11-51-410 (1)(c) to (1)(f) entered or imposed prior to July 1, 1990; or
(II) Any act or course of conduct within section 11-51-410 (1)(a), (1)(b), (1)(g),
(1)(i), or (1)(j) initiated and concluded prior to July 1, 1990.
(d) Nothing in this subsection (4) limits the authority of the securities
commissioner or any hearing officer, administrative law judge, or court to consider
any event or circumstance which has occurred or existed prior to July 1, 1990:
(I) In connection with any proceeding or action other than a proceeding under
section 11-51-410; or
(II) Solely in connection with a determination of appropriate sanctions in a
proceeding under section 11-51-410 which is based upon:
(A) Any plea, conviction, decree, order, or other action described in section
11-51-410 (1)(c), (1)(d), (1)(e), or (1)(f) entered or imposed on or after July 1, 1990; or
(B) Any act or course of conduct within section 11-51-410 (1)(a), (1)(b), (1)(g),
(1)(h), (1)(i), or (1)(j) concluded on or after July 1, 1990.
(e) Nothing in this subsection (4) limits the authority of the securities
commissioner to initiate a proceeding under section 11-51-410 with regard to:
(I) Any plea, conviction, decree, order, or other action described in section 11-51-410 (1)(c) to (1)(f) entered or imposed on or after July 1, 1990, without regard for
when the underlying act or conduct was initiated or concluded; or
(II) Any act or course of conduct within section 11-51-410 (1)(a), (1)(b), (1)(g),
(1)(h), (1)(i), or (1)(j) concluded on or after July 1, 1990, without regard for when such
act or conduct was initiated.
(f) Any administrative action by the securities commissioner under articles 51
and 52 of this title, as said articles existed prior to July 1, 1990, initiated or pending
prior to July 1, 1990, against an applicant for registration, or a person registered or
exempt from registration, as a broker, dealer, principal, financial principal,
representative, or financial representative shall be governed by such prior law;
except that as of July 1, 1990, such action shall be construed as an action under
section 11-51-410 either to deny an application for a license or to impose sanctions
against a licensed person, as the case may be, and the sanctions provided under
section 11-51-410 shall apply.
(5) (a) Any person with a place of business in this state who is registered with
the securities and exchange commission as an investment adviser under the
federal Investment Advisers Act of 1940, who is exempt from registration as an
investment adviser pursuant to section 203 (b) of said act, or who is registered as
an investment adviser in any other state, and who, prior to January 1, 1999, has filed
an application and paid the appropriate fee in compliance with the requirements set
forth in sections 11-51-403 and 11-51-404, shall be licensed automatically as an
investment adviser under this article effective January 1, 1999.
(b) Any individual with a place of business in this state who is associated
either with a federal covered adviser, or an investment adviser licensed
automatically pursuant to paragraph (a) of this subsection (5), and regarding whom,
prior to or on January 1, 1999, an application has been filed and the appropriate fee
paid in compliance with the requirements set forth in sections 11-51-403 and 11-51-404, shall be licensed automatically as an investment adviser representative for
such federal covered adviser or investment adviser under this article, effective
January 1, 1999. Automatic licensing under this paragraph (b) is unavailable to any
individual who is the subject of any plea, conviction, decree, order, or other action
described in section 11-51-410 (1)(c) to (1)(f) entered or imposed prior to January 1,
1999, or is currently the subject of a proceeding in which any of the sanctions set
forth in such paragraphs could be imposed.
(c) After January 1, 1999, no proceeding under section 11-51-410 may be
initiated by the securities commissioner against any person who is licensed
automatically pursuant to paragraph (a) or (b) of this subsection (5) if the
proceeding is based upon:
(I) Any plea, conviction, decree, order, or other action described in section 11-51-410 (1)(c) to (1)(f) entered or imposed prior to January 1, 1999; or
(II) Any act or course of conduct within section 11-51-410 (1)(a), (1)(b), (1)(g),
(1)(h), (1)(i), or (1)(j) initiated and concluded prior to January 1, 1999.
(d) Nothing in this subsection (5) limits the authority of the securities
commissioner or any hearing officer, administrative law judge, or court to consider
any event or circumstance that has occurred or existed prior to January 1, 1999:
(I) In connection with any proceeding or action other than a proceeding under
section 11-51-410; or
(II) Solely in connection with a determination of appropriate sanctions in a
proceeding under section 11-51-410 based upon:
(A) Any plea, conviction, decree, order, or other action described in section
11-51-410 (1)(c) to (1)(f) entered or imposed on or after January 1, 1999; or
(B) Any act or course of conduct within section 11-51-410 (1)(a), (1)(b), (1)(g),
(1)(h), (1)(i), or (1)(j) concluded on or after January 1, 1999.
(e) Nothing in this subsection (5) limits the authority of the securities
commissioner to initiate a proceeding under section 11-51-410 with regard to:
(I) Any plea, conviction, decree, order, or other action described in section 11-51-410 (1)(c) to (1)(f) entered or imposed on or after January 1, 1999, without regard
for when the underlying act or conduct was initiated or concluded; or
(II) Any act or course of conduct within section 11-51-410 (1)(a), (1)(b), (1)(g),
(1)(h), (1)(i), or (1)(j) concluded on or after January 1, 1999, without regard for when
such act or conduct was initiated.