Sec. 3 AAC 08.021 - Financial reports, minimum capital requirements, bonds, and record keeping requirements of broker-dealers

ยง 3 AAC 08.021. Financial reports, minimum capital requirements, bonds, and record keeping requirements of broker-dealers

(a) A broker-dealer registered or required to be registered under AS 45.55 shall comply with the net capital requirements for brokers and dealers set out in 17 C.F.R. 240.15c3 - 1, the rules on use of customer free-credit balances set out in 17 C.F.R. 240.15c3 - 2, and the customer-protection reserves and custody of securities requirements set out in 17 C.F.R. 240.15c3 - 3.

(b) A broker-dealer registered or required to be registered under AS 45.55 shall comply with 17 C.F.R. 240.17a-11, and shall file with the administrator upon request copies of all reports and notices required under 17 C.F.R. 240.17a-5, 17 C.F.R. 240.17a-10, and 17 C.F.R. 240.17a-11. The administrator will, in the administrator's discretion, by order restrict or condition the broker-dealer's right to transact business in this state as the administrator finds appropriate for the protection of investors.

(c) If the SEC amends a federal regulation with which a broker-dealer must comply under (a) or (b) of this section, a broker-dealer in compliance with that federal regulation as amended is not subject to an enforcement action by the administrator for violation of this section, if the violation results solely from the broker-dealer's compliance with that federal regulation as amended.

(d) A broker-dealer registered or required to be registered under AS 45.55 whose business is exclusively within this state, who does not make use of a facility of a national securities exchange, and who is not registered under 15 U.S.C. 78 o (sec. 15 of the Securities Exchange Act of 1934), shall post a surety bond on the form prescribed by the administrator in an amount not less than $35,000. A deposit of cash or liquid securities acceptable to the administrator may be posted with the administrator in place of the bond.

(Eff. 4/19/2000, Register 154)

Authority:AS 45.55.040

AS 45.55.050

AS 45.55.060

AS 45.55.950

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