Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
Broker-dealer: means a person engaged in the business of effecting transactions in securities for the account of others or for the person's own account. See Utah Code 61-1-13
Director: means the director of the division appointed in accordance with Section 61-1-18. See Utah Code 61-1-13
Division: means the Division of Securities established by Section 61-1-18. See Utah Code 61-1-13
Federal covered adviser: means a person who:
(i)
is registered under Section 203 of the Investment Advisers Act of 1940; or
(ii)
is excluded from the definition of "investment adviser" under Section 202(a)(11) of the Investment Advisers Act of 1940. See Utah Code 61-1-13
Investment adviser: includes a financial planner or other person who:
(A)
as an integral component of other financially related services, provides the investment advisory services described in Subsection (1)(q)(i) to others as part of a business;
(B)
holds the person out as providing the investment advisory services described in Subsection (1)(q)(i) to others; or
(C)
holds the person out as a financial adviser, financial consultant, or any other similar title as the division may specify in rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, in any way as to imply that the person is generally engaged in an investment advisory business, including a person who does not hold a securities license and uses a title described in this Subsection (1)(q)(ii)(C) in any advertising or marketing material. See Utah Code 61-1-13
purchase: means a contract for purchase of, contract to buy, or acquisition of a security or interest in a security for value. See Utah Code 61-1-13
State: means a state, territory, or possession of the United States, the District of Columbia, and Puerto Rico. See Utah Code 61-1-13
(a)
A licensed broker-dealer and investment adviser shall make and keep such accounts, correspondence, memoranda, papers, books, and other records as the division by rule prescribes, except as provided in:
(i)
Section 15 of the Securities Exchange Act of 1934 in the case of a broker-dealer; and
(ii)
Section 222 of the Investment Advisers Act of 1940 in the case of an investment adviser.
(b)
A record required to be made and kept by an investment adviser shall be preserved for the period as the division prescribes by rule or order.
(2)
(a)
A licensed broker-dealer shall, within 24 hours after demand, furnish to any customer or principal for whom the broker-dealer has executed any order for the purchase or sale of any securities, either for immediate or future delivery, a written statement showing:
(i)
the time when the securities were bought and sold;
(ii)
the place where the securities were bought and sold; and
(iii)
the price at which the securities were bought and sold.
(b)
With respect to investment advisers, the division may require that certain information be furnished or disseminated as necessary or appropriate in the public interest or for the protection of investors and advisory clients.
(c)
To the extent determined by the director, information furnished to clients or prospective clients of an investment adviser who would be in compliance with the Investment Advisers Act of 1940 and the rules under the Investment Advisers Act of 1940 may be considered to satisfy this requirement.
(3)
A licensed broker-dealer and investment adviser shall file financial reports as the division by rule prescribes, except as provided in:
(a)
Section 15 of the Securities Exchange Act of 1934 in the case of a broker-dealer; and
(b)
Section 222 of the Investment Advisers Act of 1940 in the case of an investment adviser.
(4)
If the information contained in any document filed with the division is or becomes inaccurate or incomplete in any material respect, the licensee or federal covered adviser shall promptly file a correcting amendment if the document is filed with respect to a licensee, or when such amendment is required to be filed with the Securities and Exchange Commission if the document is filed with respect to a federal covered adviser, unless notification of the correction has been given under Section 61-1-3.
(5)
(a)
A record referred to in Subsection (1) is subject at any time or from time to time to reasonable periodic, special, or other examinations by representatives of the division, within or without this state, as the division considers necessary or appropriate in the public interest or for the protection of investors.
(b)
For the purpose of avoiding unnecessary duplication of examination, the division may cooperate with:
(i)
the securities administrators of other states;
(ii)
the Securities and Exchange Commission; and
(iii)
national securities exchanges or national securities associations registered under the Securities Exchange Act of 1934.
