May 29, 2007, Introduced by Rep. Johnson and referred to the Committee on Appropriations.
A bill to amend 1964 PA 265, entitled
"Uniform securities act,"
by amending section 202 (MCL 451.602), as amended by 2003 PA 150.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 202. (a) A broker-dealer, agent, or investment adviser
may obtain an initial registration by filing with the administrator
an application together with a consent to service of process
pursuant to section 414(g). The application shall contain the
information that the administrator by rule requires concerning any
of the following:
(1) The applicant's form and place of organization.
(2) The applicant's proposed method of doing business.
(3) The qualifications and business history of the applicant;
in the case of a broker-dealer or investment adviser, the
qualifications and business history of any partner, officer, or
director, any person occupying a similar status or performing
similar functions, or any person directly or indirectly controlling
the broker-dealer or investment adviser; and, in the case of an
investment adviser, the qualifications and business history of any
employee.
(4) Any injunction or administrative order or conviction of a
misdemeanor or of a felony.
(5) The applicant's financial condition and history.
(b) The administrator may by rule or order require an
applicant for initial registration to publish an announcement of
the application in 1 or more specified newspapers published in this
state. Registration becomes effective upon order of the
administrator. The administrator may by rule or order establish
classes of or otherwise condition the registration of broker-
dealers, agents, or investment advisers.
(c)
Before October 1, 2003 or after September 30, 2007, an
applicant
for registration shall pay a filing fee and every
registrant
shall pay an annual fee of $250.00 in the case of a
broker-dealer,
$30.00 in the case of an agent, and $150.00 in the
case
of an investment adviser. Before October 1, 2003 or after
September
30, 2007, an applicant filing an application for
registration
of a successor pursuant to subsection (d) shall pay a
filing
fee of $100.00 for the unexpired portion of the year. Before
October
1, 2003 or after September 30, 2007, a registered agent who
has
terminated his or her connection with a broker-dealer shall pay
a
transfer fee of $10.00 when transferring his or her connection to
another
broker-dealer. After September 30, 2003 and before October
1,
2007, an Subject to
subsection (i), an applicant for
registration shall pay a filing fee and every registrant shall pay
an annual fee of $300.00 in the case of a broker-dealer, $65.00 in
the case of an agent, and $200.00 in the case of an investment
adviser.
After September 30, 2003 and before October 1, 2007, an
Subject to subsection (i), an applicant filing an application for
registration of a successor pursuant to subsection (d) shall pay a
filing
fee of $125.00 for the unexpired portion of the year. After
September
30, 2003 and before October 1, 2007, a Subject to
subsection (i), a registered agent who has terminated his or her
connection with a broker-dealer shall pay a transfer fee of $20.00
when transferring his or her connection to another broker-dealer.
(d) A registered broker-dealer or investment adviser may file
an application for registration of a successor, whether or not the
successor is then in existence. The administrator may grant or deny
the application.
(e) An applicant for registration under this act or an issuer
who offers or sells a security in this state through any person
shall file with the administrator, in the form prescribed by the
administrator by rule or order, an irrevocable consent to service
of process.
(f) Subject to the requirements of section 15 of the
securities
exchange act of 1934, 15 U.S.C. USC
78o, and section 222
of
the investment advisers act of 1940, 15 U.S.C. USC 80b-18a,
the
administrator may by rule or order require a minimum capital for
registered broker-dealers and investment advisers and prescribe a
ratio between net capital and aggregate indebtedness. If the
registrant fails to comply with the minimum net capital
requirement, the registrant shall immediately cease all investment
advisory or securities business operations and promptly notify the
administrator of its failure to maintain the required net capital,
of the steps to be taken to cure the net capital deficiency, and of
its anticipated date of reopening business operations. The
registrant shall not reactivate its securities or investment
advisory business operations without prior notification to the
administrator.
(g) Except as otherwise provided in this section, the
administrator may require a fidelity bond from a broker-dealer,
agent, or investment adviser who is required to be registered under
this act. The administrator may not require a bond from a broker-
dealer that is registered under the securities exchange act of 1934
or an investment adviser that maintains its principal place of
business in a state other than this state if the investment adviser
is registered in that other state and is in compliance with that
state's bonding requirements, if any.
(h) Unless the requirement is waived by rule or order of the
administrator, all persons, including but not limited to partners,
officers, directors, and agents employed by a broker-dealer or
investment adviser who are regularly employed within this state
shall, as a condition of employment, be fingerprinted. The
administrator may process the fingerprint cards with the federal
bureau of investigation and the department of state police either
directly or through the national association of securities dealers.
The fingerprints or information relating to the fingerprints shall
be used for the official use of the administrator only.
(i) The administrator may change the amount of any fees
described in this section by rule promulgated under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328. Any fee changes by the administrator under this subsection
shall take effect on the effective date of the rule.