Ala. Admin. Code r. 830-X-2-.05

Current through Register Vol. 43, No. 1, October 31, 2024

Section 830-X-2-.05 - Definitions - Unless Otherwise Expressly Provided

(1) The term associated person means any partner, officer, director (or any person occupying a similar status or performing similar functions) or any natural person directly or indirectly controlling, or controlled by, an applicant or registrant (other than employees whose functions are only clerical or ministerial).

(2) The term home office or principal office shall mean the place where the chief or principal affairs and business of the applicant or registrant are transacted.

(3) The term main office shall mean the primary branch office located in this state, provided that the applicant or registrant does not maintain a home or principal office in this state as otherwise defined.

(4) The term branch office shall mean any office of an applicant or registrant located in Alabama and other than a principal or home office, which is owned or controlled by an applicant or registrant and engaged in the securities business. In determining whether an office or the activities of a person associated with an applicant or registrant in an area constitutes a branch office, the following standards shall be used:

(a) The applicant or registrant, directly or indirectly, contributes a portion of the operating expenses of any address used by a person associated with an applicant or registrant engaged in the securities business, whether commercial office space or residence. Operating expenses, for purposes of this standard shall include items normally associated with the cost of operating the business; or

(b) The applicant or registrant authorizes a listing in any publication or other media, including a professional dealer's digest or a telephone directory, designating an address as an office.

(c) The Commission may classify any address of an applicant or registrant as a branch office if the Commission determines that the above standards are reasonably met.

(5) The term material information or adequate information shall mean that information required to provide full disclosure of financial and other information about the company and/or its securities which would enable a prudent individual to make an informed investment decision.

(6) The term commission or remuneration shall mean any compensation or financial benefit, direct or indirect, fixed or contingent, paid or received to or from any person, including reimbursement of expenses, in connection with a solicitation of any prospective buyer.

(7) The term principal shall mean any person associated with an applicant or registrant actively engaged in the management of the applicant's or registrant's securities business, including supervision, solicitation, conduct of business or the training of persons associated with an applicant or registrant for any of these functions. Such persons shall include sole proprietors, partners, officers, directors and branch managers.

Author:

Ala. Admin. Code r. 830-X-2-.05

Filed September 30, 1982. Readopted: Filed November 9, 1983. Amended: Filed September 28, 1990.

Statutory Authority:Code of Ala. 1975, § 8-6-23.