Nev. Admin. Code § 90.3298

Current through October 11, 2024

Section 90.3298 - Securities industry personnel: Use of Internet for distribution of information

1. Securities industry personnel who use the Internet to distribute information on available products and services shall not be deemed to be transacting business in this State for the purposes of NRS 90.310 or 90.330 if the information so distributed:

(a) Contains a legend clearly stating that the securities industry personnel may only transact business in those states in which they are licensed or otherwise excluded from applicable state licensing requirements;

(b) Contains a mechanism which reasonably ensures that a subsequent interaction between prospective customers or clients residing in states where the securities industry personnel are not licensed is limited so that the securities industry personnel are not required to be licensed by the state and the securities are not required to be registered;

(c) Does not involve the actual effecting of securities trades;

(d) Does not involve the rendering of personalized investment advice for compensation;

(e) Is limited to the dissemination of information about a product or service; and

(f) Prominently discloses the affiliation of the sales representative with the broker-dealer or the representative of an investment adviser with the investment adviser.

2. The broker-dealer or investment adviser shall:

(a) Review and approve the content of the information distributed on the Internet;

(b) Specifically authorize the distribution of that information regarding the product or service; and

(c) Recognize that the sales representative or representative of the investment adviser is acting within the scope of his or her authority.

Nev. Admin. Code § 90.3298

Added to NAC by Sec'y of State, eff. 10-30-97

NRS 90.320, 90.340, 90.750