PARRIS N. GLENDENING, Governor                              Ch. 613

(b) (1) [It is unlawful for any] AN investment adviser required to be registered
[ to] MAY NOT employ OR ASSOCIATE WITH an investment adviser representative unless
the representative is registered under this subtitle.

(2) A FEDERAL COVERED ADVISER SUBJECT TO NOTICE BUNG UNDER
§ 11-405(D) OF THIS SUBTITLE MAY NOT EMPLOY, SUPERVISE, OR ASSOCIATE WITH
AN INVESTMENT ADVISER REPRESENTATIVE WHO HAS A PLACE OF BUSINESS
LOCATED IN TIES STATE AN INVESTMENT ADVISER REPRESENTATIVE WHO HAS A
PLACE OF BUSINESS LOCATED IN THIS STATE MAY NOT TRANSACT BUSINESS ON
BEHALF OF A FEDERAL COVERED ADVISER, UNLESS THE INVESTMENT ADVISER
REPRESENTATIVE IS REGISTERED OR EXEMPT FROM REGISTRATION UNDER THIS
SUBTITLE.

[(2)] (3) The registration of a representative is not effective during any
period when [he] THE REPRESENTATIVE is not employed by OR ASSOCIATED WITH:

(I)      [an investment adviser registered under this subtitle.] A
REGISTERED INVESTMENT ADVISER; OR

(II)     A FEDERAL COVERED ADVISER THAT HAS FILED A NOTICE
UNDER § 11-405(B) OF THIS SUBTITLE.

[(3)] (4) When [a] AN INVESTMENT ADVISER representative begins or
terminates [his] A connection with [an] A REGISTERED investment adviser OR
TERMINATES THOSE ACTIVITIES THAT MAKE THE REPRESENTATIVE AN
INVESTMENT ADVISER REPRESENTATIVE, the investment adviser shall promptly notify
the Commissioner.

(5) WHEN AN INVESTMENT ADVISER REPRESENTATIVE BEGINS OR
TERMINATES A CONNECTION WITH A FEDERAL COVERED ADVISER OR TERMINATES
THOSE ACTIVITIES THAT MAKE THE REPRESENTATIVE AN INVESTMENT ADVISER
REPRESENTATIVE, THE INVESTMENT ADVISER REPRESENTATIVE SHALL PROMPTLY
NOTIFY THE COMMISSIONER.

(C) BY RULE OR ORDER, THE COMMISSIONER MAY MODIFY THE
REQUIREMENTS OF THIS SECTION OR EXEMPT ANY BROKER-DEALER, AGENT,
INVESTMENT ADVISER, FEDERAL COVERED ADVISER, OR INVESTMENT ADVISER
REPRESENTATIVE FROM THE REQUIREMENTS OF THIS SECTION IF THE
COMMISSIONER DETERMINES THAT:

(1)     COMPLIANCE WITH THIS SECTION IS NOT NECESSARY OR
APPROPRIATE FOR THE PROTECTION OF INVESTORS; AND

(2)     THE EXEMPTION IS CONSISTENT WITH THE PUBLIC INTEREST AND
WITHIN THE PURPOSES FAIRLY INTENDED BY THE POLICY AND PROVISIONS OF THIS
TITLE.

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