Section 1-304 - Post-registration provisions(a) Every registered broker-dealer and investment adviser shall make and keep all accounts, correspondence, memoranda, papers, books and other records which the department by regulation prescribes, except as provided by section 15 of the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. § 78o) in the case of a broker-dealer and section 222 of the Investment Advisers Act of 1940 (54 Stat. 847, 15 U.S.C. § 80b-18a) in the case of an investment adviser. All records so required with respect to an investment adviser shall be preserved for such period as the department prescribes by regulation. Subject to the limitations of section 15 of the Securities Exchange Act of 1934 in the case of a broker-dealer and section 222 of the Investment Advisers Act of 1940 in the case of an investment adviser, all records required shall be preserved for three years unless the department by regulation prescribes otherwise for particular types of records, and all required records shall be kept within this State or shall, at the request of the department, be made available at any time for examination by it either in the principal office of the registrant or by production of exact copies thereof in this State.(b) Every registered broker-dealer and investment adviser shall file such financial reports as the department by regulation prescribes, except as provided by section 15 of the Securities Exchange Act of 1934 in the case of a broker- dealer and section 222 of the Investment Advisers Act of 1940 in the case of an investment adviser.(c) If the information contained in any document filed with the department is or becomes inaccurate or incomplete in any material respect, the registrant or federally covered adviser shall promptly file a correcting amendment if the document is filed with respect to a registrant or when such amendment is required to be filed with the Securities and Exchange Commission if the document is filed with respect to a federally covered adviser.(d) The department shall make periodic examinations, within or without this State, of each broker- dealer and investment adviser at reasonable times and in reasonable scope. These examinations may be made without prior notice to the broker-dealer or investment adviser. For the purpose of avoiding unnecessary duplication of examinations, the department, in so far as it deems it practicable in administering this subsection, shall cooperate with securities administrators of other states, the Securities and Exchange Commission, and any national securities exchange or national securities association registered under the Securities Exchange Act of 1934 (15 U.S.C. § 78a et seq.) or any other department or agency of this State. The department shall have examination authority under this subsection with respect to a funding portal, as that term is defined in section 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 defined by rules of the Securities and Exchange Commission) in this State, provided that the department shall not apply any provision of this act or any rule or regulation adopted under this act or take an administrative action that is in addition to, or different from, the requirements for registered funding portals established by the Securities and Exchange Commission.(e) The department may by regulation prohibit unreasonable charges, commissions or other compensation of broker-dealers and investment advisers, provided that any charges, commissions, or other compensation consistent with rates set by a national securities exchange, when applied to transactions on that exchange, or by the Securities and Exchange Commission or national securities association registered under the Securities Exchange Act of 1934, shall not be deemed unreasonable under this section. Any underwriting compensation permitted by a national securities association registered under the Securities Exchange Act of 1934 with respect to the underwriting activities of its members shall not be deemed unreasonable under this section.(f) The department may prescribe regulations and statements of policy which it finds appropriate in the public interest and for the protection of investors for the conduct of business by broker-dealers and investment advisers who are not members of a self-regulatory organization, which association has adopted rules of conduct. The department may adopt a regulation or order requiring an agent or investment adviser representative to participate in a continuing education program approved by the Securities and Exchange Commission and administered by a self- regulatory organization or, in the absence of such a program, a regulation or order issued under this act may require continuing education for an individual registered as an agent or investment adviser representative. (g)[Deleted by 2014 Amendment.]Amended by P.L. 678 2014 No. 52, § 13, eff. 8/9/2014.1972, Dec. 5, P.L. 1280, No. 284, § 304, effective Jan. 1, 1973. Amended 1998, Nov. 24, P.L. 829, No. 109, § 16, effective in 60 days.