17-12a408.   Termination of employment or associationof agent and investment adviser representative and transfer of employment orassociation.(a) Notice of termination. If an agent registeredunder this act terminates employment by or association with abroker-dealer or issuer, or if an investment adviser representativeregistered under this act terminates employment by or associationwith an investment adviser or federal covered investment adviser,or if either registrant terminates activities that requireregistration as an agent or investment adviser representative, thebroker-dealer, issuer, investment adviser, or federal coveredinvestment adviser shall promptly file a notice of termination. Ifthe registrant learns that the broker-dealer, issuer, investmentadviser, or federal covered investment adviser has not filed thenotice, the registrant may do so.

      (b)   Transfer of employment or association. If an agentregistered under this act terminates employment by or associationwith a broker-dealer registered under this act and begins employmentby or association with another broker-dealer registered under thisact; or if an investment adviser representative registered underthis act terminates employment by or association with an investmentadviser registered under this act or a federal covered investmentadviser who has filed a notice underK.S.A. 17-12a405, andamendmentsthereto, and begins employment by or association with anotherinvestment adviser registered under this act or a federal coveredinvestment adviser who has filed a notice underK.S.A. 17-12a405,andamendments thereto, then upon the filing by or on behalf of the registrant,within 30 days after the termination, of an applicationfor registration that complies with the requirement ofK.S.A. 17-12a406(a), and amendments thereto, and payment of the filing feerequiredunderK.S.A. 17-12a410, and amendments thereto, the registration oftheagent or investment adviser representative is:

      (1)   Immediately effective as of the date of the completedfiling, if the agent's central registration depository record orsuccessor record or the investment adviser representative'sinvestment adviser registration depository record or successorrecord does not contain a new or amended disciplinary disclosurewithin the previous 12 months; or

      (2)   temporarily effective as of the date of the completedfiling, if the agent's central registration depository record orsuccessor record or the investment adviser representative'sinvestment adviser registration depository record or successorrecord contains a new or amended disciplinary disclosure within thepreceding 12 months.

      (c)   Withdrawal of temporary registration. The administratormay withdraw a temporary registration if there are or were groundsfor discipline as specified inK.S.A. 17-12a412, and amendmentsthereto,and the administrator does so within 30 days after the filing of theapplication. If the administrator does not withdraw the temporaryregistration within the 30 day period, registration becomesautomatically effective on the 31st day after filing.

      (d)   Power to prevent registration. The administrator may preventthe effectiveness of a transfer of an agent or investmentadviser representative under subsection (b)(1) or (2) based on thepublic interest and the protection of investors.

      (e)   Termination of registration or application forregistration. The administrator may cancel a registration or denyan application for registration in accordance with the provisionsof the Kansas administrative procedure act if the administratorfinds that a registrant or applicant for registration is no longerin existence or has ceased to act as a broker-dealer, agent,investment adviser, or investment adviser representative, or is thesubject of an adjudication of incapacity or is subject to thecontrol of a committee, conservator, or guardian, or cannotreasonably be located. The administrator may reinstate a canceledor terminated registration, with or without hearing, and may makethe registration retroactive.

      History:   L. 2004, ch. 154, § 25; July 1, 2005.