Vermont § 5411 - Postregistration requirements

§ 5411. Postregistration requirements

• (a) Subject to 15 U.S.C. § 78o(h) or 15 U.S.C. § 80b-22, a rule adopted or order issued under this chapter may establish minimum financial
  requirements for broker-dealers registered or required to be registered under this
  chapter and investment advisers registered or required to be registered under this
  chapter. (b) Subject to 15 U.S.C. § 78o(h) or 15 U.S.C. § 80b-22, a broker-dealer registered or required to be registered under this chapter and an
  investment adviser registered or required to be registered under this chapter shall
  file such financial reports as are required by a rule adopted or order issued under
  this chapter. If the information contained in a record filed under this subsection
  is or becomes inaccurate or incomplete in a material respect, the registrant shall
  promptly file a correcting amendment. (c) Subject to 15 U.S.C. § 78o(h) or 15 U.S.C. § 80b-22: (1) a broker-dealer registered or required to be registered under this chapter and an
  investment adviser registered or required to be registered under this chapter shall
  make and maintain the accounts, correspondence, memoranda, papers, books, and other
  records required by rule adopted or order issued under this chapter; (2) broker-dealer records required to be maintained under subdivision (1) of this subsection
  may be maintained in any form of data storage acceptable under 15 U.S.C. § 78q(a) if they are readily accessible to the Commissioner; and (3) investment adviser records required to be maintained under subdivision (1) of this
  subsection may be maintained in any form of data storage required by rule adopted
  or order issued under this chapter. (d) The records of a broker-dealer registered or required to be registered under this
  chapter and of an investment adviser registered or required to be registered under
  this chapter are subject to such reasonable periodic, special, or other audits or
  inspections by a representative of the Commissioner, within or without this State,
  as the Commissioner considers necessary or appropriate in the public interest and
  for the protection of investors. An audit or inspection may be made at any time and
  without prior notice. The Commissioner may copy, and remove for audit or inspection
  copies of, all records the Commissioner reasonably considers necessary or appropriate
  to conduct the audit or inspection. The Commissioner may assess a reasonable charge
  for conducting an audit or inspection under this subsection. (e) Subject to 15 U.S.C. § 78o(h) or 15 U.S.C. § 80b-22, a rule adopted or order issued under this chapter may require a broker-dealer or
  investment adviser that has custody of or discretionary authority over funds or securities
  of a customer or client to obtain insurance or post a bond or other satisfactory form
  of security in an amount to be established by rule or order. The Commissioner may
  determine the requirements of the insurance, bond, or other satisfactory form of security.
  Insurance or a bond or other satisfactory form of security may not be required of
  a broker-dealer registered under this chapter whose net capital exceeds, or of an
  investment adviser registered under this chapter whose minimum financial requirements
  exceed, the amounts required by rule or order under this chapter. The insurance, bond,
  or other satisfactory form of security must permit an action by a person to enforce
  any liability on the insurance, bond, or other satisfactory form of security if instituted
  within the time limitations in subdivision 5509(j)(2) of this chapter. (f) Subject to 15 U.S.C. § 78o(h) or 15 U.S.C. § 80b-22, an agent may not have custody of funds or securities of a customer except under
  the supervision of a broker-dealer, and an investment adviser representative may not
  have custody of funds or securities of a client except under the supervision of an
  investment adviser or a federal covered investment adviser. A rule adopted or order
  issued under this chapter may prohibit, limit, or impose conditions on a broker-dealer
  regarding custody of funds or securities of a customer and on an investment adviser
  regarding custody of securities or funds of a client. (g) With respect to an investment adviser registered or required to be registered under
  this chapter, a rule adopted or order issued under this chapter may require that information
  or other record be furnished or disseminated to clients or prospective clients in
  this State as necessary or appropriate in the public interest and for the protection
  of investors and advisory clients. (h) A rule adopted or order issued under this chapter may require an individual registered
  under section 5402 or 5404 of this chapter to participate in a continuing education
  program approved by the Securities and Exchange Commission and administered by a self-regulatory
  organization or, in the absence of such a program, a rule adopted or order issued
  under this chapter may require continuing education for an individual registered under
  section 5404. (Added 2005, No. 11, § 1, eff. July 1, 2006.)