17-12a407.   Succession and change in registration ofbroker-dealer or investment adviser.(a) Succession. A broker-dealer or investmentadviser may succeed to the current registration of another broker-dealer orinvestment adviser or a notice filing of a federal coveredinvestment adviser, and a federal covered investment adviser maysucceed to the current registration of an investment adviser ornotice filing of another federal covered investment adviser, by filing as asuccessor an application for registration pursuant toK.S.A. 17-12a401 or 17-12a403, and amendments thereto, or a notice pursuant toK.S.A. 17-12a405, and amendments thereto, for the unexpired portionof thecurrent registration or notice filing.

      (b)   Organizational change. A broker-dealer or investmentadviser that changes its form of organization or state ofincorporation or organization may continue its registration byfiling an amendment to its registration if the change does notinvolve a material change in its financial condition or management.The amendment becomes effective when filed or on a date designatedby the registrant in its filing. The new organization is asuccessor to the original registrant for the purposes of this act.If there is a material change in financial condition or management,the broker-dealer or investment adviser shall file a new applicationfor registration. A predecessor registered under this act shallstop conducting its securities business other than winding downtransactions and shall file for withdrawal of broker-dealer orinvestment adviser registration within 45 days after filing itsamendment to effect succession.

      (c)   Name change. A broker-dealer or investment adviser thatchanges its name may continue its registration by filing anamendment to its registration. The amendment becomes effective whenfiled or on a date designated by the registrant.

      (d)   Change of control. A change of control of a broker-dealeror investment adviser may be made in accordance with a rule adopted or orderissued under this act.

      History:   L. 2004, ch. 154, § 24; July 1, 2005.