[§485A-411]  Postregistration requirements. 
(a)  Subject to section 15(h) of the Securities Exchange Act of 1934 (15 U.S.C.
78o(h)) or section 222 of the Investment Advisers Act of 1940 (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 section 15(h) of the Securities
Exchange Act of 1934 (15 U.S.C. 78o(h)) or section 222(b) of the Investment
Advisers Act of 1940 (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 section 15(h) of the Securities
Exchange Act of 1934 (15 U.S.C. 78o(h)) or section 222 of the Investment
Advisers Act of 1940 (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 for a period of
three years after the close of the calendar or fiscal year to which they
pertain, 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 paragraph (1) may be maintained in any form of data storage acceptable
under section 17(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78q(a))
if they are readily accessible to the commissioner; and



(3)  Investment adviser records required to be
maintained under paragraph (1) 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 section 15(h) of the Securities
Exchange Act of 1934 (15 U.S.C. 78o(h)) or section 222 of the Investment
Advisers Act of 1940 (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.  The
commissioner may determine the requirements of the insurance, bond, or other
satisfactory form of security.  The insurance, bond, or other satisfactory form
of security shall 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 section 485A-509(j)(2).



(f)  Subject to section 15(h) of the Securities
Exchange Act of 1934 (15 U.S.C. 78o(h)) or section 222 of the Investment
Advisers Act of 1940 (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)  Except as otherwise provided in this
subsection, the commissioner may by rule adopted or order issued under this
chapter require a minimum capital requirement for registered
broker-dealers, which shall not be less than $5,000 in the case of
broker-dealers, and prescribe a ratio between net capital and aggregate
indebtedness; provided that this subsection shall not apply to any
broker-dealer that is registered under the Securities Exchange Act of 1934. 
The commissioner may by rule adopted or order issued under this chapter require
a net worth requirement which shall not be less than $5,000 for investment
advisers; provided that this subsection shall not apply to any investment
adviser that maintains its principal place of business in a state other than
this State, and the investment adviser is registered in the state where it
maintains its principal place of business and is in compliance with that
state's net worth or net capital requirements, if any.



(h)  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 records 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.



(i)  A rule adopted or order issued under this
chapter may require an individual registered under sections 485A-402 or
485A-404 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 485A-404. [L 2006, c 229, pt of §1]