(1) Except as otherwise provided in this section, articles 51 and 52 of this title, as said articles existed prior to July 1, 1990, exclusively govern all suits, actions, prosecutions, or proceedings which are pending or may be initiated on the basis of facts or circumstances occurring prior to July 1, 1990; except that no civil suit or action may be maintained to enforce any liability under such prior law unless brought within any period of limitation which applied when the cause of action accrued.
All registrations of securities under such prior law in effect immediately prior to July1, 1990, shall remain in effect after said date subject to revocation, termination, or withdrawal as provided under such prior law and subject to all administrative orders and all conditions relating to such registrations as were in effect under such prior law.
Such prior law applies to any offer to sell or sale made no later than January 1, 1991,pursuant to an offering begun in good faith before July 1, 1990, on the basis of an exemption available under said prior law.
(a) Every person registered or exempt from registration as a broker, dealer, principal, or representative under articles 51 and 52 of this title, as said articles existed prior to July 1, 1990, shall be automatically licensed as a broker-dealer or sales representative, as the case may be, under this article on July 1, 1990, subject to all fines, censures, suspensions, revocations, conditions, or limitations imposed upon or in connection with such registration or exemption or upon such person, as if imposed upon or in connection with a license under this article, so long as such sanctions would have remained in effect under articles 51 and 52 of this title, as said articles existed prior to July 1, 1990. Such sanctions shall continue to be governed by such prior law.
There are no grounds for the denial of automatic licensing under paragraph (a) of thissubsection (4). After July 1, 1990, every person automatically licensed under paragraph (a) of this subsection (4) shall comply with the provisions of this article as if such person's license had been originally obtained by application under the provisions of this article.
No proceeding under section 11-51-410 may be initiated by the securities commissioner against any person who is licensed pursuant to paragraph (a) of this subsection (4) if the proceeding is based upon:
Any plea, conviction, decree, order, or other action described in section 11-51-410 (1)(c) to (1)(f) entered or imposed prior to July 1, 1990; or
Any act or course of conduct within section 11-51-410 (1)(a), (1)(b), (1)(g), (1)(i), or(1)(j) initiated and concluded prior to July 1, 1990.
(d) Nothing in this subsection (4) limits the authority of the securities commissioner or any hearing officer, administrative law judge, or court to consider any event or circumstance which has occurred or existed prior to July 1, 1990:
In connection with any proceeding or action other than a proceeding under section11-51-410; or
Solely in connection with a determination of appropriate sanctions in a proceedingunder section 11-51-410 which is based upon:
Any plea, conviction, decree, order, or other action described in section 11-51-410 (1)(c), (1)(d), (1)(e), or (1)(f) entered or imposed on or after July 1, 1990; or
Any act or course of conduct within section 11-51-410 (1)(a), (1)(b), (1)(g), (1)(h),(1)(i), or (1)(j) concluded on or after July 1, 1990.
(e) Nothing in this subsection (4) limits the authority of the securities commissioner to initiate a proceeding under section 11-51-410 with regard to:
Any plea, conviction, decree, order, or other action described in section 11-51-410 (1)(c) to (1)(f) entered or imposed on or after July 1, 1990, without regard for when the underlying act or conduct was initiated or concluded; or
Any act or course of conduct within section 11-51-410 (1)(a), (1)(b), (1)(g), (1)(h),(1)(i), or (1)(j) concluded on or after July 1, 1990, without regard for when such act or conduct was initiated.
(f) Any administrative action by the securities commissioner under articles 51 and 52 of this title, as said articles existed prior to July 1, 1990, initiated or pending prior to July 1, 1990, against an applicant for registration, or a person registered or exempt from registration, as a broker, dealer, principal, financial principal, representative, or financial representative shall be governed by such prior law; except that as of July 1, 1990, such action shall be construed as an action under section 11-51-410 either to deny an application for a license or to impose sanctions against a licensed person, as the case may be, and the sanctions provided under section 11-51410 shall apply.
(5) (a) Any person with a place of business in this state who is registered with the securities and exchange commission as an "investment adviser" under the federal "Investment Advisers Act of 1940", who is exempt from registration as an investment adviser pursuant to section 203 (b) of said act, or who is registered as an investment adviser in any other state, and who, prior to January 1, 1999, has filed an application and paid the appropriate fee in compliance with the requirements set forth in sections 11-51-403 and 11-51-404, shall be licensed automatically as an investment adviser under this article effective January 1, 1999.
Any individual with a place of business in this state who is associated either with afederal covered adviser, or an investment adviser licensed automatically pursuant to paragraph (a) of this subsection (5), and regarding whom, prior to or on January 1, 1999, an application has been filed and the appropriate fee paid in compliance with the requirements set forth in sections 11-51-403 and 11-51-404, shall be licensed automatically as an investment adviser representative for such federal covered adviser or investment adviser under this article, effective January 1, 1999. Automatic licensing under this paragraph (b) is unavailable to any individual who is the subject of any plea, conviction, decree, order, or other action described in section 1151-410 (1)(c) to (1)(f) entered or imposed prior to January 1, 1999, or is currently the subject of a proceeding in which any of the sanctions set forth in such paragraphs could be imposed.
After January 1, 1999, no proceeding under section 11-51-410 may be initiated bythe securities commissioner against any person who is licensed automatically pursuant to paragraph (a) or (b) of this subsection (5) if the proceeding is based upon:
Any plea, conviction, decree, order, or other action described in section 11-51-410 (1)(c) to (1)(f) entered or imposed prior to January 1, 1999; or
Any act or course of conduct within section 11-51-410 (1)(a), (1)(b), (1)(g), (1)(h),
(1)(i), or (1)(j) initiated and concluded prior to January 1, 1999.
(d) Nothing in this subsection (5) limits the authority of the securities commissioner or any hearing officer, administrative law judge, or court to consider any event or circumstance that has occurred or existed prior to January 1, 1999:
In connection with any proceeding or action other than a proceeding under section11-51-410; or
Solely in connection with a determination of appropriate sanctions in a proceedingunder section 11-51-410 based upon:
Any plea, conviction, decree, order, or other action described in section 11-51-410 (1)(c) to (1)(f) entered or imposed on or after January 1, 1999; or
Any act or course of conduct within section 11-51-410 (1)(a), (1)(b), (1)(g), (1)(h),
(1)(i), or (1)(j) concluded on or after January 1, 1999.
(e) Nothing in this subsection (5) limits the authority of the securities commissioner to initiate a proceeding under section 11-51-410 with regard to:
Any plea, conviction, decree, order, or other action described in section 11-51-410 (1)(c) to (1)(f) entered or imposed on or after January 1, 1999, without regard for when the underlying act or conduct was initiated or concluded; or
Any act or course of conduct within section 11-51-410 (1)(a), (1)(b), (1)(g), (1)(h),(1)(i), or (1)(j) concluded on or after January 1, 1999, without regard for when such act or conduct was initiated.
Source: L. 90: Entire article R&RE, p. 738, § 1, effective July 1. L. 98: (5) added, p. 565, § 19, effective January 1, 1999.
Editor's note: This section is similar to former § 11-51-128 as it existed prior to 1990.
Cross references: For the "Investment Advisers Act of 1940", see Pub.L. 76-768, codified at 15 U.S.C. § 80b-1 et seq.