PARRIS N. GLENDENING, Governor

H.B. 877

(2) BEFORE ACTING AS A FEDERAL COVERED ADVISER IN THIS STATE
A PERSON SHALL PAY THE FEE REQUIRED BY § 11-407 OF THIS SUBTITLE AND SHALL
FILE THE FOLLOWING DOCUMENTS AS THE COMMISSIONER MAY REQUIRE BY RULE
OR ORDER:

(I) THE DOCUMENTS THAT THE PERSON FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION; AND

(II) A CONSENT TO SERVICE OF PROCESS UNDER § 11-802(A) OF
THIS TITLE.

(3) (I) IF A FEDERAL COVERED ADVISER WHO IS REQUIRED TO
COMPLY WITH PARAGRAPH (21 OF THIS SUBSECTION FAILS TO PAY THE REQUIRED
FEE, THE COMMISSIONER MAY REQUIRE THE FEDERAL COVERED ADVISER TO
REGISTER AS AN INVESTMENT ADVISER UNDER THIS SUBTITLE.

(II) FOR PURPOSES OF THIS PARAGRAPH, A FAILURE TO PAY DOES
NOT INCLUDE A NONPAYMENT OR UNDERPAYMENT OF A FEE THAT IS PROMPTLY
REMEDIED FOLLOWING WRITTEN NOTIFICATION FROM THE COMMISSIONER OF THE
NONPAYMENT OR UNDERPAYMENT.

[(b)](C) Notwithstanding the provisions of subsection (a) of this section, a
registered broker-dealer who is also a registered investment adviser in this State OR WHO
IS ALSO A FEDERAL COVERED ADVISER THAT HAS FILED A NOTICE UNDER
SUBSECTION (D) OF THIS SECTION may effect the initial registration of any or all of its
registered agents in this State as investment adviser representatives by the filing of:

(1)     A notice with the Commissioner designating the registered agents as
representatives of the investment adviser OR FEDERAL COVERED ADVISER;

(2)     A consent to service of process under § 11-802(a) of this title; and

(3)     Such other information as the Commissioner by rule or order may
require.

(D) NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (A) OF THIS
SECTION, A REGISTERED BROKER-DEALER WHO IS ALSO A FEDERAL COVERED
ADVISER THAT HAS FILED A NOTICE UNDER SUBSECTION (B) OF THIS SECTION MAY
EFFECT THE INITIAL REGISTRATION OF ITS REGISTERED AGENTS WITH A PLACE OF
BUSINESS IN THIS STATE AS INVESTMENT ADVISER REPRESENTATIVES BY THE
FILING OF:

(1) A NOTICE WITH THE COMMISSIONER DESIGNATING THE
REGISTERED AGENTS AS REPRESENTATIVES OF THE FEDERAL COVERED ADVISER:

(2) A CONSENT TO SERVICE OF PROCESS UNDER § 11-802(A) OF THIS
TITLE; AND

(3) SUCH OTHER INFORMATION AS THE COMMISSIONER BY RULE OR
ORDER MAY REQUIRE.

- 4843 -