Ch. 805

LAWS OF MARYLAND

CONTROL, OR OTHER INSTITUTIONAL INVESTORS AS ARE DESIGNATED BY
RULE OR ORDER OF THE COMMISSIONER; OR

(II) DURING ANY PERIOD OF 12 CONSECUTIVE MONTHS
HE DOES NOT DIRECT BUSINESS COMMUNICATIONS IN THIS STATE IN ANY
MANNER TO MORE THAN 5 CLIENTS, OTHER THAN THOSE SPECIFIED IN
SUBPARAGRAPH (I) OF THIS PARAGRAPH, WHETHER OR NOT HE OR ANY OF
THE PERSONS TO WHOM THE COMMUNICATIONS ARE DIRECTED IS THEN
PRESENT IN THIS STATE.; OR

(4) THAT PERSON:

(I)  IS NOT AN INVESTMENT ADVISER AS DEFINED IN
§ 11-101(F)(1)(I) OF THIS SUBTITLE;

(II)   IS SUBJECT TO REGULATION BY A MARYLAND
STATE AGENCY, BOARD, OR COMMISSION THAT HAS DISCIPLINARY
AUTHORITY RELATING TO FINANCIAL COUNSELING AND ADVICE;

(III)  DOES NOT ACCEPT A COMMISSION, FEE, OR
OTHER REMUNERATION FOR A REFERRAL TO A CLIENT OF PRODUCTS OF
OTHERS; AND

(IV)  DOES NOT TAKE OR HAVE CUSTODY OF ANY
SECURITIES OR FUNDS OF ANY CLIENT TO WHOM FINANCIAL COUNSELING OR
ADVICE IS PROVIDED.

11-402.

(A)  (1) It is unlawful for any broker-dealer or issuer to
employ an agent unless the agent is registered.

(2) When an agent terminates a connection with a
broker-dealer or issuer or terminates those activities which make
him an agent, the agent and the broker-dealer or issuer shall
promptly notify the Commissioner.

(B)  (1) IT IS UNLAWFUL FOR ANY INVESTMENT ADVISER REQUIRED
TO BE REGISTERED TO EMPLOY AN INVESTMENT ADVISER REPRESENTATIVE
UNLESS THE REPRESENTATIVE IS REGISTERED UNDER THIS SUBTITLE.

(2)  THE REGISTRATION OF A REPRESENTATIVE IS NOT
EFFECTIVE DURING ANY PERIOD WHEN HE IS NOT EMPLOYED BY AN
INVESTMENT ADVISER REGISTERED UNDER THIS SUBTITLE.

(3)  WHEN A REPRESENTATIVE BEGINS OR TERMINATES HIS
CONNECTION WITH AN INVESTMENT ADVISER, THE INVESTMENT ADVISER
SHALL PROMPTLY NOTIFY THE COMMISSIONER.

11-403.

Unless sooner terminated under other provisions of this
title, the registration of each [broker-dealer and agent]

- 4370 -