May 6, 2010, Introduced by Reps. Meekhof, Rogers, Hildenbrand, Opsommer, Miller, Genetski, Denby, Schuitmaker, Agema, Proos, Byrum, Hammel, LeBlanc, Roy Schmidt and Pearce and referred to the Committee on Insurance.
A bill to amend 2008 PA 551, entitled
"Uniform securities act (2002),"
by amending section 404 (MCL 451.2404).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 404. (1) An individual shall not transact business in
this state as an investment adviser representative unless the
individual is registered under this act as an investment adviser
representative or is exempt from registration as an investment
adviser representative under subsection (2). An individual acting
as an investment adviser representative in this state on the
effective date of the 2010 amendatory act that amended this section
is exempt from the requirement to sit for the examination in order
to be registered if that individual meets any of the following
criteria:
(a) Has passed the uniform investment adviser state law
examination (S65) or the uniform combined state law examination
(S66) within the past 2 years.
(b) Has been practicing, without interruption, since passing
either of the examinations described in subdivision (a).
(c) Has successfully passed either of the following:
(i) The investment company product representative – (series 6)
and uniform securities agent state law examination – (S63).
(ii) The general securities representative – (series 7) and
uniform securities agent state law examination – (S63).
(d) Is a member of a corporate registered investment adviser.
(2) Each of the following individuals is exempt from the
registration requirement of subsection (1):
(a) An individual who is employed by or associated with an
investment adviser that is exempt from registration under section
403(2) or a federal covered investment adviser that is excluded
from the notice filing requirements of section 405.
(b) Any other individual exempted by rule or order under this
act.
(3) The registration of an investment adviser representative
is not effective while the investment adviser representative is not
employed by or associated with an investment adviser registered
under this act or a federal covered investment adviser that has
made or is required to make a notice filing under section 405.
(4) An individual may transact business as an investment
adviser representative for more than 1 investment adviser or
federal covered investment adviser unless a rule or order under
this act prohibits or limits an individual from acting as an
investment adviser representative for more than 1 investment
adviser or federal covered investment adviser.
(5) An individual acting as an investment adviser
representative shall not, directly or indirectly, conduct business
in this state on behalf of an investment adviser or a federal
covered investment adviser if the registration of the individual as
an investment adviser representative is suspended or revoked or the
individual is barred from employment or association with an
investment adviser or a federal covered investment adviser by an
order under this act, the securities and exchange commission, a
securities regulator of another state, or a self-regulatory
organization. If a federal covered investment adviser requests and
good cause is shown, the administrator, by order, may waive, in
whole or in part, the application of the requirements of this
subsection.
(6) An investment adviser registered under this act, a federal
covered investment adviser that has filed a notice under section
405, or a broker-dealer registered under this act is not required
to employ or associate with an individual as an investment adviser
representative if the only compensation paid to the individual for
a referral of investment advisory clients is paid to an investment
adviser registered under this act, a federal covered investment
adviser who has filed a notice under section 405, or a broker-
dealer registered under this act with which the individual is
employed or associated as an investment adviser representative.