New Hampshire Securities Rules

Chapter Atg-Se 100 [Top]

ORGANIZATION

Part Atg-Se 101. Definitions

Atg-Se 101.01 Terms used

As used in these rules, the following terms shall have the meanings indicated:

(a) "Attorney General" means the Attorney General of the State of New Hampshire or his designee.

(b) "Branch office" means any office to which a broker-dealer directly or indirectly contributes a substantial portion of the operating expenses and which is utilized by any person associated with the broker-dealer who is engaged in the investment banking or securities business, whether it be a commercial office space or residence. An office shall also be considered a branch office if the broker-dealer authorizes a listing in any publication or any other media, including a professional dealer's digest or a telephone directory, which listing designates a place as an office or if the broker-dealer designates any such place with any organization as an office.

(c) "Bureau" means the Bureau of Securities Regulation within the Department of Justice which was created by agreement of the Attorney General and Secretary of State pursuant to Ch. 355, Laws of 1991.

(d) "National Association of Securities Dealers" means the organization by that name located at: 260 Franklin Street, 16th Floor, Boston, Massachusetts 02110.

(e) "Securities and Exchange Commission" means the federal securities regulatory authority located at: John W. McCormack Poch Building, Room 700, Boston, Massachusetts 02109.

Chapter Atg-Se 200 [Reserved] [Top]

Chapter Atg-Se 300 [Top]

LICENSING REQUIREMENTS

Part Atg-Se 301. Broker-Dealer Licenses

Atg-Se 301.01 Unlicensed broker-dealers -- unlawful activity

It shall be unlawful for any person to transact business in this state as a broker-dealer unless he is licensed under this Part.

Atg-Se 301.02 New broker-dealer licenses

(a) The fee for the annual license issued pursuant to this Part shall be $200 and a $50 non-refundable application fee, as provided in RSA 421-B:31.

(b) All net broker-dealer licenses issued and effective on or after January 1, shall be effective during the calendar year and shall expire on December 31 of the year of issue.

Part Atg-Se 302 Broker-Dealer Application Procedure

Atg-Se 302.01 Application

(a) The United States Securities and Exchange Commission's Form BD, shall be the application for initial license as a broker-dealer in the state of New Hampshire and shall be obtained from the United States Securities and Exchange Commission, Suite 700, John W. McCormack Post Office and Courthouse Building, Boston, Massachusetts 02109.

(b) Applications for a broker-dealer license in New Hampshire shall be filed at the Department of State, Bureau of Securities Regulation, State House, Room 204, Concord, NH, 03301.

(c) The application for a broker-dealer license shall consist of:

(1) The application form as prescribed by Section 302.01(a);

(2) Certification of the applicant's qualifications and/or experience pursuant to Part Atg-Se 303;

(3) The prescribed fees as established by RSA 421-B:31.

(4) The Uniform Consent to Service of Process as prescribed by this part.

(5) A Surety Bond as prescribed by Section 303.01(c).

(6) An application to register 1 person as qualified as a principal in accordance with the experience and examination requirements of Section 303.01.

(7) 1 copy of the supervisory manual used by the broker dealer as required by the National Association of Securities Dealers Rule of Fair Practice Article III, Section 27.

(8) A copy of the applicant's most recent audited annual report, however, if the audited annual report is more than 6 months old, the applicant shall also submit an interim report not more than 2 months old, which is attested to and signed by a principal officer of the firm.

(9) If the applicant is a corporation, the applicant shall submit a copy of the applicant's articles of incorporation and by laws.

(10) If the applicant is a partnership, the applicant shall submit a copy of the applicant's partnership agreement.

(d) Each application for licensure as a broker-dealer shall appoint the secretary of state and his successors in office as its attorney to receive service of all legal process issued against it in any civil action or proceeding in this state, and shall agree that process so served shall be valid and binding upon said applicant. The appointment shall be irrevocable. It shall bind said applicant and any successor in interest as to the assets or liabilities of said applicant and it shall remain in effect as long as there are outstanding in this state any obligations or liability, or the potential for obligations or liability, resulting from the activities creating the need for the license.

Atg-Se 302.02 Original license -- issuance or denial

(a) If an applicant timely files an application, complete in all respects, successfully completes all examinations required by Part Atg-Se 303 of this chapter, and demonstrates the complete fulfillment of the requirements of these parts and RSA 421-B, the secretary of state shall issue a broker-dealer license.

(b) In the event an application for an original broker-dealer license in the state of New Hampshire fails to meet the requirements of these parts or RSA 421-B, or both, the attorney general, either on its own motion, or upon recommendation from the secretary of state, shall deliver to the applicant a written denial of the application specifying the requirement which the applicant failed to meet and how the application is deficient.

Part Atg-Se 303. Broker-Dealer Qualifications

Atg-Se 303.01 Requirements

In addition to any requirements established by statute, there are hereby established the following requirements for licensing as a broker/dealer:

(a) No person shall be issued a broker-dealer license unless at least 1 person employed full-time in a supervisory capacity by the applicant for such license shall have been actively engaged in the securities business in a similar supervisory capacity for a minimum of 3 of the preceding 5 years.

(b) No person shall be issued a broker-dealer license if any control person of such person was an officer, supervisor, or owner of 10% or more of the securities of any firm liquidated under the Securities Investor Protection Act of 1970.

(c) No license shall be issued by the secretary of state after the effective date of this part for a broker-dealer unless one person occupying a supervisory position has successfully passed a principal examination appropriate for the business conducted by the broker-dealer.

(d) Pursuant to the provisions of RSA 421-B:7, IV, no person shall be issued or shall continue to hold a broker-dealer license unless that person has first filed with the bureau of securities regulation, a surety bond in the amount established by the attorney general as follows: The minimum bond amount shall be $25,000.00. The attorney general shall for good cause shown, require an increase in a dealer's surety bond as indicated below, where the bureau has reason to believe that the applicant or licensee or any partner, officer or director thereof, or any person occupying a similar status or performing similar functions, or any person directly or indirectly controlling the broker-dealer, has participated in, or has otherwise been involved in any of the activities listed in the paragraphs that follow.

(e) The surety bond amount shall be increased by $25,000 for each instance of any of the following activities which the bureau has reason to believe have occurred:

(1) filing an application for licensing which as of its effective date, or as of any date after filing, was incomplete in any material respect or contained any statement which was, in light of the circumstances under which it was made, false or misleading with respect to any material fact;

(2) failing to comply with or willfully violating any provision of Title XXXVIII of the New Hampshire Revised Statutes Annotated or predecessor law, or the Securities Act of 1933, the Securities Exchange Act of 1940, or any rule under any of such statutes, or any order thereunder, of which he has notice and to which he is subject, or has failed to comply with statutes promulgated by other states;

(3) conviction, within the past 10 years, of any misdemeanor involving a security or any aspect of the securities business, or any felony, unless annulled;

(4) permanent or temporary injunction by any court of competent jurisdiction from engaging in or continuing any conduct or practice involving any aspect of the securities business;

(5) an order has been issued against the broker-dealer by the bureau of securities regulation, denying, suspending, or revoking any license as a broker-dealer, agent, or investment adviser;

(6) an order has been entered within the past 5 years by the securities administrator of any other state or by the Securities and Exchange Commission denying or revoking licenses or registration as a broker-dealer, agent, or investment adviser, or the substantial equivalent of those terms, or is the subject of an order of the Securities and Exchange Commission suspending or expelling him from a national securities exchange or national securities association registered under the Securities Exchange Act of 1934;

(7) dishonest or unethical practices in the securities business;

(8) failure to supervise agents;

(9) made any material misrepresentation to any regulatory authority or has refused to furnish information to, or has concealed information from, the bureau.

(f) The surety bond amount shall be increased by $10,000 for each instance of any of the following activities which the bureau has reason to believe have occurred:

(1) failure of the broker-dealer to maintain net capital, if the net capital deficiency is less than $10,000;

(2) sale of securities by the broker-dealer through unlicensed agents in any jurisdiction;

(3) any violation by the broker-dealer or any control person of the broker-dealer of a self-regulatory organization's rules;

(4) any violation by the broker-dealer or any control person of the broker-dealer of a New Hampshire regulation, other than in the case of a net capital violation.

(g) The attorney general shall require additional surety in the amount of $10,000, from a firm with more than 2 domestic branch offices.

(h) In the event of a net capital deficiency greater than $10,000, the bureau shall require the broker-dealer to post a bond that is increased in an amount equal to the net capital deficiency rounded to the nearest $1,000.

(i) In lieu of the experience requirement in Section 303.01(a), the bureau shall accept an increase of $75,000 to the required surety.

(j) Nothing in this rule shall preclude the attorney general from accepting an appropriate deposit of cash or securities in lieu of the bond required, as prescribed by NH RSA 421-B:7 IV.

(k) The bond shall comply with the following terms and conditions:

(1) The bond shall be written and executed to the benefit of the attorney general and his successors in office and for the citizens of the state of New Hampshire for the use and benefit of the state of New Hampshire and the citizens and residents thereof.

(2) The bond shall be continuous, shall be filed on the form prescribed by the attorney general and shall be signed by a principal of the applicant and shall be accompanied by a properly completed and signed power of attorney document.

(3) The suspension or revocation of the applicant's broker-dealer's license shall not cancel, suspend or otherwise impair the obligations of the surety arising under the bond.

(4) Failure to comply with these requirements shall render the surety bond incomplete and shall result in the return of the surety bond.

Part Atg-Se 304. Post Licensing Requirements

Atg-Se 304.01 Examinations

The per diem charged pursuant to RSA 421-B:9, VII shall be the actual cost of examination or $255.00 per day per examiner whichever is less.

Part Atg-Se 305. Reserved

Part Atg-Se 306. Investment Adviser Licenses

Atg-Se 306.01 Unlicensed investment advisers -- Unlawful activity

It shall be unlawful for any person to transact business in this state as an investment adviser unless he is licensed under this part.

Atg-Se 306.02 New investment adviser licenses

(a) The fee for the annual license issued pursuant to this part is $200 and a non-refundable application fee of $50 as provided in RSA 421-B:31.

(b) All new investment adviser licenses issued and effective on or after January 1, shall be effective during the calendar year and shall expire on December 31 of the year of issue.

Part Atg-Se 307. Investment Adviser Application Procedure

Atg-Se 307.01 Application

(a) The United States Securities and Exchange Commission's Form ADV, shall be the application for initial license as an investment adviser in the state of New Hampshire and shall be obtained from the United States Securities and Exchange Commission, Suite 700, John W. McCormack Post Office and Courthouse Building, Boston, Massachusetts 02109.

(b) Applications for an investment adviser's license in New Hampshire shall be filed at the office of the Secretary of State, Bureau of Securities Regulation, State House, Room 204, Concord, NH, 03301-4989.

(c) The application for an investment adviser's license shall consist of:

(1) The application form as prescribed by this part.

(2) The prescribed fees as established by RSA 421-B:31.

(3) The Uniform Consent to Service of Process as prescribed by Atg-Se 308.01(a)

(4) A Surety Bond as prescribed by Sec. 308.01(b).

(5) An application to register 1 person qualified as an investment adviser agent in accordance with the requirements of Atg-Se 313.01, unless applicant is a sole proprietor and the only person giving investment advice is the sole proprietor, in which instance the sole proprietor must meet the requirements of Section 313.01.

(6) A financial statement which shall be:

a. audited, or

b. in the instance where no audited financial statement is in existence, then certified by the appropriate person as presenting fairly in all material respects, the financial condition of the firm.

(7) If the applicant is a corporation, the applicant shall submit a copy of the applicant's articles of incorporation and by-laws.

(8) If the applicant is a partnership, the applicant shall submit a copy of the applicant's partnership agreement.

Atg-Se 307.02 Original license -- issuance or denial

(a) If an applicant timely files an application, complete in all respects, successfully completes all examinations required by Part Atg-Se 308 of this chapter, and demonstrates the complete fulfillment of the requirements of this part and RSA 421-B, the secretary of state shall issue an investment adviser's license.

(b) In the event an application for an original investment adviser's license in the state of New Hampshire fails to meet the requirements of this part or RSA 421-B or both, the attorney general upon its own motion or upon recommendation by the Secretary of State, shall deliver to the applicant a written denial of the application, specifying the requirement which the applicant failed to meet and how the application is deficient.

Part Atg-Se 308. Investment Adviser Qualifications

Atg-Se 308.01 Requirements

(a) Each applicant for licensure as an investment adviser shall appoint the secretary of state and his successors in office as its attorney to receive service of all legal process issued against it in any civil action or proceeding in this state, and shall agree that process so served shall be valid and binding upon said applicant. The appointment shall be irrevocable. It shall bind said applicant and any successor in interest as to the assets or liabilities of said applicant, and it shall remain in effect as long as there are outstanding in this state any obligations or liability, or the potential for obligations or liability, resulting from the activities creating the need for the license.

(b) Pursuant to the provisions of RSA 421-B:7, IV, no person shall be issued or shall continue to hold an investment adviser license unless that person has first filed with the bureau of securities regulation, a surety bond in the amount established by the attorney general as follows: The minimum bond amount shall be $25,000.00. The attorney general shall for good cause shown, require an increase in an investment adviser's surety bond in the following amounts, where the bureau has reason to believe that the applicant or licensee or any partner, officer or director thereof, or any person occupying a similar status or performing similar functions, or any person directly or indirectly controlling the investment adviser, has participated in, or has otherwise been involved in any of the following activities listed in the paragraphs that follow.

(c) The surety bond amount shall be increased by $25,000 for each instance of any of the following activities which the bureau has reason to believe have occurred:

(1) filing an application for licensing which as of its effective date, or as of any date after filing, was incomplete in any material respect or contained any statement which was, in light of the circumstances under which it was made, false or misleading with respect to any material fact;

(2) failing to comply with or willfully violating any provision of Title XXXVIII of the New Hampshire Revised Statutes Annotated or a predecessor law, or the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisors Act of 1940, or any rule under any of such statutes, or any order thereunder, of which he has notice and to which he is subject, or has failed to comply with statutes promulgated by other states;

(3) conviction, within the past 10 years, of any misdemeanor involving a security or any aspect of the securities business, or any felony, unless annulled;

(4) permanent or temporary injunction by any court of competent jurisdiction from engaging in or continuing any conduct or practice involving any aspect of the securities business;

(5) an order has been issued against the investment adviser by the attorney general, denying, suspending, or revoking any license as a broker-dealer, agent, or investment adviser;

(6) an order has been entered within the past 5 years by the securities administrator of any other state or by the Securities and Exchange Commission denying or revoking licenses or registration as a broker-dealer, agent, or investment adviser, or the substantial equivalent of those terms, or is the subject of an order of the Securities and Exchange Commission suspending or expelling him from a national securities exchange or national securities association registered under the Securities Exchange Act of 1934;

(7) pattern of dishonest or unethical practices in the securities business;

(8) failure to supervise agents;

(9) made any material misrepresentation to any regulatory authority or has refused to furnish information to, or has concealed information from, the bureau.

(d) The surety bond amount shall be increased by $10,000 for each instance of any of the following activities which the bureau has reason to believe have occurred:

(1) sale of securities through unlicensed agents in any jurisdiction;

(2) any violation of a self-regulatory organization's rules;

(3) any violation of a New Hampshire regulation;

(e) The attorney general shall require additional surety in the amount of $10,000, from a firm with more than two domestic branch offices;

(f) Nothing in this rule shall preclude the attorney general from accepting an appropriate deposit of cash or securities in lieu of the bond required, as prescribed by NH RSA 421-B:7 IV;

(g) The bond shall comply with the following terms and conditions:

(1) The bond shall be written and executed to the benefit of the attorney general and for the citizens of the state of New Hampshire for the use and benefit of the state of New Hampshire and the citizens and residents thereof.

(2) The bond shall be continuous, shall be filed on the form prescribed by the attorney general, and shall be signed by a principal of the applicant and shall be accompanied by a properly completed and signed power of attorney document. Failure to comply with these requirements shall render the surety bond incomplete and will result in return of the surety bond.

(3) The suspension or revocation of the applicant's investment adviser's license shall not cancel, suspend or otherwise impair the obligations of the surety arising under the bond.

Part Atg-Se 309. Reserved

Part Atg-Se 310. Reserved

Part Atg-Se 311. Agents' Licenses

Atg-Se 311.01 Alternative means of agents' licensure

Pursuant to the authority granted to the attorney general in RSA 421-B:7, VI, the attorney general hereby establishes alternative means of licensing agents by utilization of the facilities of the National Association of Securities Dealers which facilitates licensing on a nationwide basis.

Atg-Se 311.02 Unlicensed agents -- unlawful activity

It shall be unlawful for any person to transact business in this state as an agent unless he is licensed under this Part.

Atg-Se 311.03 Unlawful employment

It shall be deemed unlawful employment for any issuer-dealer, investment adviser or broker-dealer to employ an agent unless that agent is licensed. No agent shall at any time represent more than one issuer-dealer, or broker-dealer, except that where issuer-dealers, or broker-dealers, affiliated by direct common control, and are licensed pursuant to RSA 421-B, an agent may represent any such issuer-dealer, or broker-dealer.

Atg-Se 311.04 Agent licensing restrictions

(a) The licensing of an agent is not effective during any period when he or she is not associated with a particular licensed issuer-dealer, investment adviser or broker-dealer.

(b) When an agent either begins or terminates those activities which make him an agent, the issuer-dealer, investment adviser or broker-dealer shall notify the bureau within 10 days.

(c) All agents properly licensed with a broker-dealer as an agent, may conduct business as an investment adviser agent for the same firm, without licensing as such, provided that the firm is properly licensed as an investment adviser pursuant to RSA 421-B and this part.

Atg-Se 311.05 New agents' licenses

(a) The fee for the annual license issued pursuant to this Part is $100 and a non-refundable application fee of $30 shall be required, as provided in RSA 421-B:31.

(b) All new agents' licenses issued and effective on or after January 1, shall be effective during the calendar year and shall expire on December 31 of the year of issue.

Part Atg-Se 312 Agents' Application Procedure

Atg-Se 312.01 Application

(a) Applications for an agent's license in New Hampshire, form U-4, shall be obtained from the office of the National Association of Securities Dealers, Inc., 75 Federal Street, Boston, Massachusetts or 1735 `K' Street, N.W., Washington, D.C., 20006.

(b) Applications for an agent's license in New Hampshire shall be filed at the office of the Secretary of State, Bureau of Securities Regulation, State House, Room 204, Concord, New Hampshire, 03301-4989.

(c) The application for an agent's license shall consist of:

(1) The application form U-4 as drafted by the National Association of Securities Dealers, Inc., and the Securities and Exchange Commission.

(2) Certification of the applicant's successful sitting of the National Association of Securities Dealers, Inc.'s agent's examination.

(3) The prescribed fees as established by part Atg-Se 311.

Atg-Se 312.02 Original license -- issuance or denial

(a) If an applicant timely files an application, complete in all respects, successfully completes all examinations required by Part Atg-Se 314 of this chapter and demonstrates the complete fulfillment of the requirements of these parts and RSA 421-B, the secretary of state shall issue an agent's license.

(b) In the event an application for an original agent's license in the state of New Hampshire fails to meet the requirements of this part or RSA 421-B or both, the attorney general upon its own motion, or upon recommendation from the secretary of state, shall deliver to the applicant a written denial of the application, specifying the requirement which the applicant failed to meet and how the application is deficient.

Part Atg-Se 313. Agent Qualifications

Atg-Se 313.01 Requirements

In addition to any requirements imposed by statute, all applicants for an agent's license in New Hampshire shall demonstrate that they possess the following qualifications:

(a) The applicant shall be not less than 18 years of age on the date the application is received by the bureau.

(b) Conviction within the past 10 years of any misdemeanor involving a security or any aspect of the securities business or any felony, which has not been annulled by a court shall result in denial of the license.

(c) The applicant shall complete and pass the examination(s) described in Atg-Se 314.01.

Part Atg-Se 314. Agent Examinations

Atg-Se 314.01 Examinations -- contents

(a) Each applicant for broker-dealer agent licensing shall pass the National Association of Securities Dealers' USASLE (Uniform Securities Agent State Law Examination) (S63) examination.

(b) Each applicant for investment adviser agent licensing shall pass either the National Association of Securities Dealers' UIALE (Uniform Investment Adviser Law Examination) (Series 65) examination or the National Association of Securities Dealers' USASLE (Uniform Securities Agent State Law Examination) (Series 63) examination.

Atg-Se 314.02 Examinations -- scheduling

(a) The complete agent's examination shall be administered by the National Association of Securities Dealers, Inc., on announced dates and at announced locations.

(b) All rules and requirements established and followed by the National Association of Securities Dealers, Inc. regulating the scheduling of the subject examinations are incorporated herein by reference.

(c) Failure of the applicant to sit for the examination at the required time shall result in denial of the application.

Part Atg-Se 315. Reserved

Chapter Atg-Se 400 [Top]

CONTINUED STATUS

Part Atg-Se 401. Broker-Dealer Renewals

Atg-Se 401.01 Renewal application -- where obtained and filed

(a) Broker-dealers who are not members of the National Association of Securities Dealers shall apply by December 31st of each year for renewal of broker-dealer license in New Hampshire to the Department of State, Bureau of Securities Regulation, State House, Room 204, Concord, New Hampshire, 03301-4989 and pay the prescribed fee established by 421-B:31.

(b) Pursuant to the authority granted to the attorney general in RSA 421-B:7, VI, the attorney general hereby established alternative means of issuing renewal certificates for licenses issued to broker-dealers who are members of the National Association of Securities Dealers, by utilization of the facilities of the National Association of Securities Dealers which facilitates licensing on a nationwide basis.

Atg-Se 401.02 Renewal license -- issuance and denial

(a) If an applicant timely files an application, complete in all respects, and demonstrates the complete fulfillment of all the requirements of these Parts and RSA 421-B, the secretary of state shall issue a renewal broker-dealer's license.

(b) In the event an application for a renewal broker-dealer license in the state of New Hampshire fails to meet the requirements of these Parts or RSA 421-B, or both, the attorney general, upon its motion, or upon recommendation from the secretary of state shall deliver to the applicant a written denial of the application specifying the requirement which the applicant failed to meet and how the application is deficient.

Atg-Se 401.03 Duplicate/replacement certificate -- issuance

The bureau shall issue duplicate or replacement broker-dealer licenses upon:

(a) A written request therefore signed by the applicant; and

(b) Proof that good cause exists for the issuance of the duplicate/replacement license.

Part Atg-Se 402. Investment Adviser Renewals

Atg-Se 402.01 Renewal application -- where obtained and filed

(a) Investment advisers shall apply by December 31st of each year for renewal of investment adviser license in New Hampshire to the Department of State, Bureau of Securities Regulation, State House, Room 204, Concord, New Hampshire, 03301-4989 and pay the prescribed fee established by 421-B:31.

Atg-Se 402.02 Renewal license -- issuance and denial

(a) If an applicant timely files an application, complete in all respects, and shall demonstrate the complete fulfillment of all the requirements of these Parts and RSA 421-B, the secretary of state shall, in its discretion, issue a renewal investment adviser's license.

(b) In the event an application for a renewal investment adviser license in the state of New Hampshire fails to meet the requirements of these Parts or RSA 421-B, or both, the attorney general, upon its own motion or upon recommendation from the secretary of state, shall deliver to the applicant a written denial of the application specifying the requirement which the applicant failed to meet and how the application is deficient.

Atg-Se 402.03 Duplicate/replacement certificate -- issuance

The bureau shall issue duplicate or replacement investment adviser licenses upon:

(a) A written request therefore signed by the applicant; and

(b) Proof that good cause exists for the issuance of the duplicate/replacement license.

Part Atg-Se 403. Agent Renewals

Atg-Se 403.01 Renewal application -- where obtained and filed

(a) Agents who are not members of the National Association of Securities Dealers shall apply by December 31st of each year for renewal of an agent license in New Hampshire to the Department of State, Bureau of Securities Regulation, State House, Room 204, Concord, New Hampshire, 03301-4989 and pay the prescribed fee established by 421-B:31.

(b) Pursuant to the authority granted to the attorney general in RSA 421-B:7, VI the attorney general hereby establishes alternative means of issuing renewal certificates to agents who are members of the National Association of Securities Dealers which facilitates licensing on a nationwide basis.

Atg-Se 403.02 Renewal license -- issuance and denial

(a) If an applicant timely files an application, complete in all respects, and shall demonstrate the complete fulfillment of all the requirements of these Parts and RSA 421-B, the secretary of state shall, in its discretion, issue a renewal agent's license.

(b) In the event an application for a renewal agent's license in the state of New Hampshire fails to meet the requirements of these Parts or RSA 421-B, or both, the attorney general upon his own motion, or upon recommendation from the secretary of state shall deliver to the applicant a written denial of the application specifying the requirement which the applicant failed to meet and how the application is deficient.

Atg-Se 403.03 Duplicate/replacement certificate -- issuance

The bureau shall issue duplicate or replacement agents' licenses upon:

(a) A written request therefore signed by the applicant; and

(b) Proof that good cause exists for the issuance of the duplicate/replacement license.

Part Atg-Se 404. Broker-Dealer Revocation and Suspension

Atg-Se 404.01 Revocation -- effect

(a) The revocation of a broker-dealer's license shall permanently withdraw the authority of the broker-dealer to conduct the business of a broker-dealer in New Hampshire.

(b) A subsequent certificate shall be obtained only by

(1) complying with all of the requirements of RSA 421-B and these Parts regarding the original licensing of broker-dealers; and

(2) paying all penalties assessed in connection with the cause for revocation; and

(3) demonstrating that the cause for revocation does not exist at the time of the subsequent application.

Atg-Se 404.02 Suspension -- effect

The suspension of a broker-dealer's license shall temporarily withdraw the authority to conduct a broker-dealer's business in New Hampshire until the time specified in the order of suspension. The authority to conduct a broker-dealer's business in New Hampshire shall be recovered only by complying with all of the requirements of RSA 421-B and these Parts regarding the renewal of a broker-dealer's license and the payment of any penalties assessed in connection with the cause for suspension.

Atg-Se 404.03 Voluntary surrender -- when permitted

(a) Any person holding a broker-dealer's license may voluntarily return that license to the bureau. The return of such license shall be accompanied by the licensee's signed, written statement as to why the license is being voluntarily returned to the bureau. The voluntary surrender of a broker-dealer's license shall serve to withdraw the authority for the broker-dealer to conduct a broker-dealer's business in New Hampshire.

(b) Voluntary surrender of a broker-dealer's license shall not be permitted if there exists, at the time the license is presented to the attorney general, any cause for involuntary revocation or suspension of the registrant's license to do business as a broker-dealer, unless the licensee presenting the license shall state in writing that the voluntary surrendering of its license is in lieu of proceedings looking to the involuntary revocation or suspension of the license to do business as a broker-dealer in New Hampshire.

Atg-Se 404.04 Hearing

Except as authorized by statute or these rules, a broker-dealer's license shall not be revoked or suspended except after notice and opportunity for hearing.

Atg-Se 404.05 Return of certificate

Any broker-dealer whose license has been revoked or suspended shall, within 5 days after the date of the order of revocation or suspension, return to the bureau the license previously issued to the broker-dealer.

Part Atg-Se 405. Investment Adviser Revocation and Suspension

Atg-Se 405.01 Revocation -- effect

(a) The revocation of an investment adviser's license shall permanently withdraw the authority of the investment adviser to conduct the business of an investment adviser in New Hampshire.

(b) A subsequent certificate shall be obtained only by

(1) complying with all of the requirements of RSA 421-B and these rules regarding the original licensing of investment advisers; and

(2) paying all penalties assessed in connection with the cause for revocation; and

(3) demonstrating that the cause for revocation does not exist at the time of the subsequent application.

Atg-Se 405.02 Suspension -- effect

The suspension of an investment adviser's license shall temporarily withdraw the authority to conduct an investment adviser's business in New Hampshire until the time specified in the order of suspension. The authority to conduct an investment adviser's business in New Hampshire shall be recovered only by complying with all of the requirements of RSA 421-B and these Parts regarding the renewal of an investment adviser's license and the payment of any penalties assessed in connection with the cause for suspension.

Atg-Se 405.03 Voluntary surrender -- when permitted

(a) Any person holding an investment adviser's license may voluntarily return that license to the bureau. The return of such license shall be accompanied by the licensee's signed, written statement as to why the license is being voluntarily returned to the bureau. The voluntary surrender of an investment adviser's license shall serve to withdraw the authority for the investment adviser to conduct an investment adviser's business in New Hampshire.

(b) Voluntary surrender of an investment adviser's license shall not be permitted if there exists, at the time the license is presented to the bureau, any cause for involuntary revocation or suspension of the registrant's license to do business as an investment adviser, unless the licensee presenting the license shall state in writing that the voluntarily surrendered license is in lieu of proceedings looking to the involuntary revocation or suspension of the license to do business as an investment adviser in New Hampshire.

Atg-Se 405.04 Hearing

Except as authorized by statute or these rules, an investment adviser's license shall not be revoked or suspended except in accordance with the procedures set forth in Part 201.

Atg-Se 405.05 Return of certificate

Any investment adviser whose license has been revoked or suspended shall, within 5 days after the date of the order of revocation or suspension, return to the bureau the license previously issued to the investment adviser.

Part Atg-Se 406. Agent Revocation and Suspension

Atg-Se 406.01 Revocation -- effect

(a) The revocation of an agent's license shall permanently withdraw the authority of the agent to conduct the business of an agent in New Hampshire.

(b) A subsequent certificate shall be obtained only by

(1) complying with all of the requirements of RSA 421-B and these rules regarding the original licensing of agents; and

(2) paying all penalties assessed in connection with the cause for revocation; and

(3) demonstrating that the cause for revocation does not exist at the time of the subsequent application.

Atg-Se 406.02 Suspension -- effect

The suspension of an agent's license shall temporarily withdraw the authority to conduct an agent's business in New Hampshire until the time specified in the order of suspension. The authority to conduct an agent's business in New Hampshire shall be recovered only by complying with all of the requirements of RSA 421-B and these Parts regarding the renewal of an agent's license and the payment of any penalties assessed in connection with the cause for suspension.

Atg-Se 406.03 Voluntary surrender -- when permitted

(a) Any person holding an agent's license may voluntarily return that license to the bureau. The return of such license shall be accompanied by the licensee's signed, written statement as to why the license is being voluntarily returned to the bureau. The voluntary surrender of an agent's license shall serve to withdraw the authority for the agent to conduct an agent's business in New Hampshire.

(b) Voluntary surrender of an agent's license shall not be permitted if there exists, at the time the license is presented to the bureau, any cause for involuntary revocation or suspension of the registrant's license to do business as an agent, unless the licensee presenting the license shall state in writing that the voluntarily surrendered license is in lieu of proceedings looking to the involuntary revocation or suspension of the license to do business as an agent in New Hampshire.

Atg-Se 406.04 Hearing

Except as authorized by statute or these rules, an agent's license shall not be revoked or suspended except after notice and opportunity for hearing.

Atg-Se 406.05 Return of certificate

Any agent whose license has been revoked or suspended shall, within 5 days after the date of the order of revocation or suspension, return to the bureau the license previously issued to the agent.

Chapter Atg-Se 500 [Top]

ETHICAL STANDARDS

Part Atg-Se 501. Standards and Requirements for Broker-Dealers

Atg-Se 501.01 Fiduciary responsibility; segregation of client's property

(a) It shall be unlawful for any broker-dealer to take or have custody of any funds or securities in which any client has a beneficial interest unless all of the following requirements are met:

(1) All such securities of each such client are segregated, marked to identify the particular client who has the beneficial interest therein, and held in safekeeping in some place reasonably free from risk of destruction or other loss; and

(2) All such funds of such clients are deposited in one or more bank accounts which contain only clients' funds; and such account or accounts are maintained in the name of the broker-dealer as agent or trustee for such clients; and

(3) The broker-dealer maintains a separate record of each such account which shows:

(a) the name of the bank where such account is maintained,

(b) the dates and the amounts of deposits in and withdrawals from such account, and

(c) the exact amount of each client's beneficial interest in such account;

(4) Such broker-dealer immediately after accepting custody or possession of such funds or securities from any client, notifies such client in writing of:

(a) the place and manner in which such fund or securities will be maintained, and

(b) thereafter, if and when there is any change in the place or manner in which such funds or securities are being maintained, gives each such client written notice thereof;

(5) Such broker-dealer sends to each client, not less frequently than once every 3 months, an itemized statement showing the funds and securities in the custody or possession of the broker-dealer at the end of such period, and all debits, credits and transactions in such client's account during such period;

(6) All such funds and securities of clients are verified by actual examination at least once during each calendar year by an independent certified public accountant.

(7) A certificate of such accountant stating that he has made an examination of such funds and securities, and describing the nature and extent of such examination, shall be filed with the bureau promptly after such examination.

(b) This section shall not apply to an investment adviser also registered as a broker-dealer under Section 15 of the Securities Exchange Act of 1934 if:

(1) Such broker-dealer is subject to and in compliance with Rule 15c3-1 (Reg. 240.15c3-1) under the Securities Exchange Act of 1934, or

(2) Such broker-dealer is a member of an exchange whose members are exempt from Rule 15c3-1 under the provision of paragraph (b)(2) thereof, and such broker-dealer is in compliance with all rules and settlement practices of such exchange imposing requirements with respect to financial responsibility and the segregation of funds or securities carried for the account of customers.

(c) Brokers and dealers who are exempted under section 240.15c 3-3 (k)(i), (ii), (iv) and (2)(i), (ii) of the Securities and Exchange Act of 1934 are exempted from Atg-Se 501.01.

Atg-Se 501.02 Net capital requirements

Every broker-dealer shall maintain a minimum net capital as provided by the Securities and Exchange Act of 1934.

Atg-Se 501.03 Termination of licensed person; notification to bureau

Upon termination of the activities of a licensed person, the broker-dealer shall, within 5 business days, notify the bureau in writing of the termination stating the reason therefor and including the license, if a license is in the possession of the broker-dealer.

Atg-Se 501.04 Required bookkeeping; accounts

(a) Every broker-dealer shall maintain accounts of customers in such form and manner as to show the following information:

(1) name,

(2) address,

(3) age

(4) in the case of a margin or discretionary account, the customer's signature(s),

(5) the signature of the agent introducing the account and

(6) the signature of the broker-dealer or the partner, officer or manager accepting the account for the broker-dealer.

(b) If the customer is associated with or employed by another broker-dealer, this fact must be noted. In discretionary accounts, the broker-dealer shall also record the date said account was authorized, the occupation and signature of the customer, and the signature of each person authorized to exercise discretion in each account.

Atg-Se 501.05 Required bookkeeping

(a) Every broker-dealer shall make and keep true, accurate and current books and records relating to his broker-dealer business.

(b) Every broker-dealer shall keep and preserve in each branch office either a separate file on all written complaints of customers and action taken by the broker-dealer, if any, or a separate record of such complaints and a clear reference to the files containing the correspondence connected with such complaint as maintained in such office. A "complaint" shall be deemed to mean any written statement of a customer or any person acting on behalf of a customer alleging a grievance involving the activities of those persons under the control of the broker-dealer in connection with the solicitation or execution of any transaction or the disposition of securities or funds of that customer.

(c) All broker-dealers shall keep and maintain at their branch offices, open to inspection by the bureau, a litigation file documenting any criminal or civil actions filed in any state or federal court against the broker-dealer branch office or against any of its personnel with respect to a securities transaction and the disposition of any such litigation.

(d) Every broker-dealer shall preserve all records required by this section for a period of not less than 6 years, the first 2 years in an easily accessible place and form.