PARRIS N. GLENDENING, Governor                               H.B. 877

(1)      THE INFORMATION CONTAINED IN ANY DOCUMENT FILED WITH
THE COMMISSIONER BY THE FEDERAL COVERED ADVISER IS OR BECOMES
INACCURATE IN ANY MATERIAL RESPECT; AND

(2)      THE SECURITIES AND EXCHANGE COMMISSION REQUIRES THE
CORRECTING AMENDMENT; AND

(3) THE FEDERAL COVERED ADVISER HAS NOT PROVIDED
NOTIFICATION UNDER § 11-402 OF THIS SUBTITLE.

[(e)](F) (1) All the records referred to in subsection (a) of this section are
subject at any time or from time to time to the reasonable periodic, special, or other
examinations by representatives of the Commissioner, within or without this State, which
the Commissioner considers necessary or appropriate in the public interest or for the
protection of investors.

(2) For the purpose of avoiding unnecessary duplication of examinations,
the Commissioner, to the extent [he] THE COMMISSIONER considers it practicable in
administering this subsection, may cooperate with the securities administrators of other
states, the Securities and Exchange Commission, and any national securities exchange or
national securities association registered under the Securities Exchange Act of 1934.

11-412:

(a) The Commissioner by order may deny, suspend, or revoke any registration if
[he] THE COMMISSIONER finds that the order is in the public interest and that the
applicant or registrant or, in the case of a broker-dealer or investment adviser, 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:

(1)     Has filed an application for registration which, as of its effective date or
as of any date after filing in the case of an order denying effectiveness, was incomplete in
any material respect or contained any statement which was, in light of the circumstances
under which it was made, false or misleading with respect to any material fact;

(2)     Has willfully violated or willfully failed to comply with any provisions of
this title, a predecessor act, or any rule or order under this title or a predecessor act;

(3)     Has been convicted, within the last 10 years, of a felony, or of an offense
that:

(i) Involves the taking of a false oath, the making of a false report,
bribery, perjury, burglary, or attempt or conspiracy to commit any of those offenses;

(ii) Arises out of the conduct of business as, or employment by or
association with, a broker-dealer, municipal or government securities broker or dealer,
investment adviser, bank, savings institution, trust company, credit union, savings and
loan association, insurance company or broker, fiduciary, investment company,
accountant, or real estate agent or broker, or any entity or person required to be
registered under the Commodity Exchange Act; or

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