Section 1-302 - ExemptionsThe following persons shall be exempted from the registration provisions of section 301:
(a) A broker-dealer registered under the Securities Exchange Act of 1934, who has not previously had any registration denied or revoked under this act or any predecessor statute, if he has no place of business in this State and, during the preceding 12 months, he does not direct offers to sell or buy into this State in any manner to persons other than broker-dealers, institutional investors or governmental agencies and other instrumentalities designated by regulation of the department, or to more than five other customers in this State, whether or not the offeror or any of the offerees is then present in this State.(b) An agent in so far as he effects transactions on behalf of a broker-dealer who is exempted by the provisions of subsection (a).(c) A person who represents an issuer in effecting transactions in securities registered under section 205 or 206 who: (1) Is a bona fide officer, director, partner or employe of the issuer or an individual occupying similar status or performing similar functions; and(2) Does not receive any compensation, directly or indirectly, for effecting the transactions.(d) An investment adviser who does not have a place of business in this State that is registered or exempt from registration under the securities act of the state in which the person has his principal place of business and during the preceding twelve-month period has had not more than five clients who are residents of this State exclusive of other investment advisers, federally covered advisers, broker-dealers or institutional investors.(d.1) An investment adviser representative who is employed by or associated with an investment adviser insofar as he transacts business in this State on behalf of an investment adviser who is exempted by the provisions of subsection (d).(d.2) An investment adviser representative who has a place of business in this State and is employed by or associated with a federally covered adviser and the federally covered adviser meets any of the criteria described in section 303(a)(iii)(A), (B) or (C).(e) Any person who represents an issuer in effecting transactions in: (1) Securities that are exempted by section 202(e), (f) or (g);(2) Securities involved in a transaction exempted by section 203(c), (g), (k), (l) or (m); or(3) Securities which are covered securities under section 18(b)(1) of the Securities Act of 1933 (48 Stat. 74, 15 U.S.C. § 77r(b)(1)).(e.2) A person that comes within the exclusion described in section 4(b)(1) and (2) of the Securities Act of 1933 (48 Stat. 74, 15 U.S.C. § 77d(b)).(e.3) A funding portal, as that term is defined in § 3(a) (80) of the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. § 78c(a)(80)), that is registered as a funding portal with the Securities and Exchange Commission and has its principal place of business , as such term is defined by rules of the Securities and Exchange Commission, in this State. The funding portal, however, shall be subject to the provisions of sections 304(d) and 510(f) .(f) The department may by such regulations as it deems necessary or appropriate in the public interest or for the protection of investors, either unconditionally or upon specified terms and conditions or for specified periods, exempt from the provisions of section 301 any class of persons specified in such regulations.Amended by P.L. 678 2014 No. 52, § 12, eff. 8/9/2014.1972, Dec. 5, P.L. 1280, No. 284, § 302, effective Jan. 1, 1973. Amended 1993, May 4, P.L. 4, No. 4, § 2, imd. effective; 1998, Nov. 24, P.L. 829, No. 109, § 14, effective in 60 days; 2002, July 4, P.L. 721, No. 108, § 7, effective in 60 days.