§ 7-11-202 - Exempt broker dealers and sales representatives.
SECTION 7-11-202
§ 7-11-202 Exempt broker dealers and salesrepresentatives. – (a) The following broker dealers are exempt from the licensing requirements of§ 7-11-201:
(1) A broker dealer who either is registered or, except asprovided in subsection (b) of this section, is not required to be registeredunder the Securities Exchange Act of 1934, 15 U.S.C. § 78a et seq., andwho has no place of business in this state if:
(i) The transactions effected by the broker dealer in thisstate are exclusively with the issuer of the securities involved in thetransactions, other broker dealers licensed or exempt under this chapter, andfinancial or institutional investors;
(ii) The broker dealer is licensed under the securities actof a state in which the broker dealer maintains a place of business and thebroker dealer offers and sells in this state to a person who is an existingcustomer of the broker dealer and whose principal place of residence is not inthis state; and
(2) Other broker dealers the director, by rule or order,exempts.
(b) The exemption provided in paragraph (a)(1)(i) of thissection is not available to a broker dealer who deals solely in governmentalsecurities and is not registered under the Securities Exchange Act of 1934, 15U.S.C. § 78a et seq., unless the broker dealer is subject to supervisionas a dealer in government securities by the federal reserve board.
(c) The following sales representatives are exempt from thelicensing requirements of § 7-11-201:
(1) A sales representative acting for a broker dealer exemptunder subsection (a) of this section;
(2) A sales representative acting exclusively for an issuerin effecting transactions in a security exempted by § 7-11-401(1) –(4) and (10) – (12);
(3) A sales representative acting for an issuer effectingoffers or sales of securities in transactions exempted by § 7-11-402;
(4) A sales representative acting for an issuer effectingtransactions with employees, partners, officers, or directors of the issuer, aparent or a wholly owned subsidiary of the issuer, if no commission or othersimilar compensation is paid or given directly or indirectly to the salesrepresentative for soliciting an employee, partner, officer, or director inthis state;
(5) A sales representative acting for an issuer effectingoffers or sales of securities that are covered securities under § 18(b)(3)or § 18(b)(4)(D) of the securities act of 1933, 15 U.S.C. § 77r(b)(3)or 77r(b)(4)(D), provided that no commission or other remuneration is paid orgiven directly or indirectly for soliciting any person in this state;
(6) A sales representative whose transactions in this stateare limited to only those transactions set forth in § 15(h)(2) of theSecurities Exchange Act of 1934, 15 U.S.C. § 78o(h)(2); and
(7) Other sales representatives that the director exempts byrule or order.