§ 32 §16402 — Agent licensing requirement and exemptions

1.
Licensing requirement.
It is unlawful for an individual to transact business in this State as an agent unless the individual is licensed under this chapter as an agent or is exempt from licensing as an agent under subsection 2.
2.
Exemptions from licensing.
The following individuals are exempt from the licensing requirement of subsection 1:
3.
License effective only while employed or associated.
The license of an agent is effective only while the agent is employed by or associated with a broker-dealer licensed under this chapter or an issuer that is offering, selling or purchasing its securities in this State and is effective only with respect to transactions effected as an employee or otherwise on behalf of said broker-dealer or issuer.
4.
Limit on employment or association.
It is unlawful for a broker-dealer, or an issuer engaged in offering, selling or purchasing securities in this State, to employ or associate with an agent who transacts business in this State on behalf of broker-dealers or issuers unless the agent is licensed under subsection 1 or exempt from licensing under subsection 2.
5.
Limit on affiliations.
An individual may not act as an agent for more than one broker-dealer or one issuer at a time, unless the broker-dealers and the issuers for which the agent acts are affiliated by direct or indirect common control or are authorized by rule or order under this chapter.
6.
Rulemaking.
Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2‑A.

Legislative History

PL 2005, c. 65, §A2 (NEW). PL 2023, c. 503, §3 (AMD).