Alabama Administrative Code

Any vendor through which documents are being processed for electronic recording with the judge of probate shall be bonded in an amount sufficient to satisfy the fees and taxes of all documents which are being processed by said vendor. This amount shall be set by the judge of prob…

The Alabama Securities Commission is organized pursuant to Act No. 740 (1969 Regular Session) as codified in Code of Ala. 1975, §§ 8-6-50 through 60. Its members consist of the State Superintendent of Banks, the State Commissioner of Insurance, the Attorney General of Alabama and…

The Commission is charged with the responsibility of administering the Industrial Revenue Development Bond Notification Act as codified in Code of Ala. 1975, §§ 8-6-110 through 8-6-122. Author: Notes Ala. Admin. Code r. 830-X-1-.02 Filed September 30, 1982. Readopted: Filed Novem…

The Commission is charged with the responsibility of administering the Sale of Checks Act as codified in Code of Ala. 1975, §§ 8-7-1 through 8-7-15. Author: Notes Ala. Admin. Code r. 830-X-1-.03 Filed September 30, 1982. Readopted: Filed November 9, 1983. Statutory Authority: Cod…

Commission members, with the exception of the Attorney General, are appointed by the Governor for a term of four years. If at any tine there should be a vacancy on the Commission, a successor member may be appointed by the Governor for the unexpired term. Commission members are e…

(1) General. The Commission recognizes both formal and informal hearings. Formal hearings are those matters which require the taking of sworn testimony, a formal hearing, and a formal order. They must be instituted and progressed in conformity with the applicable rules governing …

(1) The forms prescribed by the Commission for use in the registration of securities are as follows:Form RQ -- Application for Registration of Securities by Qualification, Exhibit Form No. 1 (Used in conjunction with Form RQ) Form NM -- Notice for Open-End Management Investment C…

(1) All petitions for rule-making proceedings pursuant to Code of Ala. 1975, § 41-22-8, must contain the name and mailing address of the petitioner; text of the rule to be adopted, amended, or repealed; specific grounds and reasons therefor; and the specific action requested. (2)…

(1) A person may petition the Commission for a declaratory ruling as to the validity of any of these rules or the applicability of any rule or statute enforceable by the Commission or with respect to the meaning and scope of any order of the Commission as it applies to the petiti…

(1) As used in the Rules and Regulations prescribed by the Commission pursuant to Title 8, Chapter 6, Section 23, Code of Ala. 1975, unless the context otherwise specifically requires:(a) The term Act means the Alabama Securities Act as cited by Chapter 6, Section 1, Title 8, Cod…

The office of the Commission at Montgomery, Alabama, is open each day except Saturdays, Sundays and state holidays from 8 a.m. to 5 p.m. Central Standard Time or Central Daylight Savings Time, whichever is in effect. Author: Notes Ala. Admin. Code r. 830-X-2-.02 Filed September 3…

All papers required to be filed with the Commission may be filed through the mails or otherwise. The date on which papers are actually received by the Commission shall be the date of filing thereof; provided that all of the requirements with respect to the filing have been satisf…

Information or documents obtained by members of the Commission or employees of the Commission in the course of any examination or investigation pursuant to Code of Ala. 1975, Title 8, Chapter 6, Section 15, shall, unless made a matter of public record, be deemed confidential. Mem…

(1) The term associated person means any partner, officer, director (or any person occupying a similar status or performing similar functions) or any natural person directly or indirectly controlling, or controlled by, an applicant or registrant (other than employees whose functi…

(1) Every advertisement and all sales literature used in connection with an offering of securities registered under this Act, must be authorized in writing by the Commission before being placed or used in newspapers or other means of public communication unless it is within the r…

All applications for registrations shall be submitted on forms authorized by the Alabama Securities Commission. All information requested in such application is essential and must be furnished. Any application which is not adequately and properly submitted will be returned for co…

(1) Each dealer shall file a complete Form BD and any other documentation required by law or by rule, regulation or order of the Commission. (2) If the information contained in any application for registration as a dealer, or in any amendment thereto, becomes inaccurate for any r…

(1) Application for registration as an NASD member agent shall be filed on Form U-4 and in compliance with all requirements of the NASAA/NASD Central Registration Depository System, or its successor, and in compliance with all requirements of law or by rules, regulations or order…

(1) Each investment adviser shall file a Form ADV and any other documentation the Commission may require. (2) If the information contained in any application for registration, or in any amendment thereto, becomes inaccurate for any reason, the investment adviser shall within 30 d…

(1) Application for registration as an investment adviser representative shall be filed on Form U-4 with the Commission, or its designee, and in compliance with all requirements and rules prescribed by the Commission. (2) Whenever the information contained in an investment advise…

(1) An applicant filing a new application for registration as a dealer or investment adviser shall file a balance sheet prepared in accordance with generally accepted accounting principles, dated not more than ninety days prior to the date of filing. Such balance sheet shall be i…

(1) For the purpose of this rule, and for the purpose of initial or renewal registration pursuant to Section 3, Title 8, Code of Ala. 1975, Net Capital shall be computed as follows: Assets minus total liabilities, excluding liabilities which are subordinated to the claims of cred…

Author: Notes Ala. Admin. Code r. 830-X-3-.07 Rule 830-X-3-.07 entitled "Salesman's Registration Card" filed September 30, 1982. Readopted: Filed November 9, 1983. Repealed: Filed September 28, 1990. Statutory Authority:

(1) Each officer, director, partner or any person occupying a similar status or performing similar functions of a dealer applicant, or an agent applicant, who intends to engage in securities transactions must satisfy both the following exam requirements: (a) An examination on sta…

Registration of any "associated person" simultaneously with more than one issuer, dealer, or investment advisor is prohibited, except as may be allowed on a case by case basis by the Director after a determination is made that the waiver would be in the public interest. Author: A…

An applicant or registrant named as a defendant or respondent in one or more of the following actions shall notify the Commission within thirty (30) days in writing of any such action: (a) Criminal charges punishable by imprisonment for more than six months, charges involving sec…

Notes Ala. Admin. Code r. 830-X-3-.11 Rule 830-X-3-.11 entitled "Salesman's Photograph Required" filed September 30, 1982. Readopted: Filed November 9, 1983. Repealed: Filed September 28, 1990.

Every dealer, investment adviser and every associated person thereof who recommends to a customer the purchase, sale or exchange of any security shall have reasonable grounds to believe and shall believe that the recommendation is suitable for such customer on the basis of inform…

(1) Every dealer, issuer or investment adviser, and officers, directors and partners thereof, shall exercise diligent supervision over all the securities activities of its associated persons. (2) Every associated person of the dealer, issuer or investment adviser shall be subject…

(1) Every dealer registered in this state, except as otherwise provided by this rule, shall make and keep current the following books and records relating to its business as provided herein:(a) Blotters (or other records of original entry) containing an itemized daily record of a…

Except as otherwise provided by this rule, every dealer shall preserve the following records for a period of not less than three (3) years, during the first two (2) years of which such records shall be kept in an easily accessible place: (a) All checkbooks, bank statements, cance…

(1) Every investment adviser registered or required to be registered under the Act shall make and keep current the following books, ledgers and records: (a) A journal or journals, including cash receipts and disbursements records, and any other records of original entry forming t…

(1) A copy of Part II of Form ADV must be given to clients of investment advisers, or a brochure containing such information may be utilized. (2) The investment adviser or its registered representatives shall deliver the disclosure information required by this section to an advis…

(1) No dealer, investment adviser, agent or investment adviser representative, or officer, partner, director, or agent of any thereof, shall effect or induce or attempt to induce any transaction in any insurance or securities portfolio of a prospective investor or customer for th…

An investment adviser who takes or has custody of any securities or funds of any client must comply with the following: (a) The investment adviser shall notify the Commission that it has or may have custody. Such notification may be given on Form ADV. (b) The securities of each c…

(1) For purposes of this rule, agency cross transaction means a transaction in which an investment adviser, or any person controlled by, or under common control with such investment adviser, including an investment adviser representative, acts as a dealer for both the advisory cl…

(1) An investment adviser is a fiduciary and has a duty to act primarily for the benefit of its clients. While the extent and nature of this duty varies according to the nature of the relationship between an investment adviser and its clients and the circumstances of each case, a…

(1) It is a fraudulent, deceptive or manipulative act, practice or course of business, within the meaning of the state securities act, for an investment adviser, directly or indirectly, to publish, circulate or distribute any advertisement which:(a) Refers, directly or indirectly…

(1) Where only a change in name of an applicant or registrant occurs, notice of such fact shall be promptly filed on Form BD or Form ADV, as appropriate and as provided therein, and the following exhibits shall be filed within thirty (30) days: (a) Any amendments of organizationa…

In the event of a change of the officers, partners, directors or controlling persons, as defined by these rules, of any applicant or registrant, written notice of such fact or change shall be filed with the Commission, or its designee, within thirty (30) days, as provided by Form…

(1) Every dealer or investment adviser registered in Alabama shall notify the Commission of the establishment of any office in Alabama, as well as its address, and the name or names of the branch managers and the method of compensation for those branch managers. (2) Such notifica…

(1) In the event a registrant should terminate registration or be terminated for any reason, notice of such fact in the forms prescribed by either the Commission, the National Association of Securities Dealers, or the United States Securities and Exchange Commission shall be file…

An applicant for registration as a dealer or investment adviser shall not use a name so similar to that of another dealer or investment adviser whether registered in this state or not, or a bank, insurance company, trust company, or other entity, so as to be misleading or confusi…

(1) The use of a senior-specific certification or professional designation by any person in connection with the offer, sale, or purchase of securities, or the provision of advice as to the value of or the advisability of investing in, purchasing, or selling securities, either dir…

Applications for registration of securities by Coordination shall be submitted on Form U-1, the uniform Application to Register Securities. Applications for registration of securities by Qualification shall be submitted on Form 33 supplied by the Securities Commission. All inform…

(1) An applicant for registration of securities must file a related prospectus containing significant information about the issuer and the offering so that the Commission may ascertain if the proposed offering meets the requirements of Title 8, Code of Ala. 1975. The prospectus m…

(1) The prospectus must contain information to provide full disclosure of financial and other information about the company and/or its securities which would enable a prudent individual to make an informed and realistic evaluation of the worth of the company and/or of the securit…

(1) In the event that an offering of securities is not completed within nine (9) months from the effective date of registration, a revised prospectus shall be prepared and filed for approval by the Commission not later than thirty (30) days prior to the expiration date of the pro…

Preliminary prospectuses may be distributed in Alabama by a registered Alabama dealer or by an issuer provided that an application to register the securities offered is pending before the Commission, and provided: (a) An application to register the securities is also pending befo…

(1) All financial statements required by these rules or any official form of the Commission shall be prepared in accordance with generally accepted accounting principles. All such financial statements should normally be on a consolidated basis with respect to a parent corporation…