Md. Code Regs. 02.02.05.01

Current through Register Vol. 51, No. 24, December 2, 2024

Section 02.02.05.01 - Definitions

A. As used in the Maryland Securities Act, Corporations and Associations Article, § 11-101(h), Annotated Code of Maryland, the following terms have the meanings indicated.

B. Terms Defined.

(1) "Compensation" means a form of payment or consideration, whether direct or indirect or in the form of cash or other benefits, that is paid or conveyed to or for the benefit of the investment adviser in connection with the rendering of the investment advisory services described in the Maryland Securities Act, Corporations and Associations Article, § 11-101(i), Annotated Code of Maryland.

(2) "Engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing or selling securities, or who, for compensation and as a part of a regular business, issues or promulgates analyses or reports concerning securities" has the same meaning as the identical phrase found in § 202(a)(11) of the Investment Advisers Act of 1940 and the rules, regulations, and interpretive releases promulgated under it.

(3) "Engineer" means a person who is registered and in good standing with the State Board for Professional Engineers, as provided in Business Occupations and Professions Article, Title 14, Annotated Code of Maryland, or its equivalent licensing and regulatory agency in a state.

(4) "Insurance producer" means an insurance producer licensed by and in good standing with the Maryland Insurance Administration, as set forth in the Insurance Article, Annotated Code of Maryland.

(5) "Investment Advisers Act of 1940" means the federal act of that name, as amended, set forth in 15 U.S.C. §§ 80b-1-80 b-21.

(6) "Investment Company Act of 1940" means the federal act of that name, as amended, set forth in 15 U.S.C. §§ 80a-1-80 a-52.

(7) "Lawyer" means a person who is admitted to practice before the bar of any state and is in good standing with it.

(8) "Securities Exchange Act of 1934" means the federal act of that name, as amended, set forth in 15 U.S.C. §§ 78a- 78jj.

(9) "Solely incidental to the practice of his profession" has the same meaning as the identical phrase found in § 202(a)(11) of the Investment Advisers Act of 1940 and the rules, regulations, and interpretive releases promulgated under it.

(10) "Teacher" means a person who possesses a valid license or certificate of qualification to teach in an educational institution in a state, or a person who is employed in a teaching or research capacity by a college, university, or other accredited educational institution.

C. Notwithanding the Maryland Securities Act, Corporations and Associations Article, § 11-101(i), Annotated Code of Maryland, the term "investment adviser representative", as it applies to an individual who is employed by or associated with a federal covered adviser, only includes an individual who has a "place of business" in this State, as that term is defined in rules or regulations promulgated under § 203A of the Investment Advisers Act of 1940, and who is either:

(1) An "investment adviser representative" as that term is defined in rules or regulations promulgated under § 203A of the Investment Advisers Act of 1940; or

(2) Not a "supervised person" as that term is defined in rules or regulations promulgated under the Investment Advisers Act of 1940, and solicits, offers, or negotiates for the sale of or sells investment advisory services on behalf of a federal covered adviser.

Md. Code Regs. 02.02.05.01

Regulations .01 adopted as an emergency provision effective July 25, 1989 (16:16 Md. R. 1733); emergency status expired December 22, 1989
Regulations .01 adopted as an emergency provision effective December 23, 1989 (17:1 Md. R. 63); adopted permanently effective April 16, 1990 (17:7 Md. R. 845); amended effective 48:26 Md. R.1109, eff. 12/27/2021