Title 44 — Trade and Commerce

In this chapter, unless the context otherwise requires: 1. "Closed-end company" means any management company other than an open-end company or unit investment trust. 2. "Depository institution" means a bank, savings and loan association or trust company whose business is supervis…

In interpreting the definitions prescribed in section 44-3101 and other terms and phrases used in this chapter, the commission may refer to identical terms or phrases in the investment advisers act of 1940 and investment company act of 1940 including regulations or interpretive r…

The director of securities appointed pursuant to section 44-1811 shall administer this chapter.

The assistant director of securities appointed pursuant to section 44-1812 shall assist in administering this chapter.

The director may employ personnel for the administration of this chapter as prescribed in section 44-1813.

The director and any person under the director's supervision shall be paid travel and other necessary expenses as provided in section 44-1814.

The director shall cooperate with the administrators of investment adviser, investment company and management and similar laws of other states and of the United States and with the national association of securities dealers, inc. with a view to achieving maximum uniformity in the…

A. The commission may adopt rules pursuant to title 41, chapter 6 that are reasonably necessary to carry out the purposes of this chapter. B. The commission may delegate such authority to the director of securities as is convenient or necessary for the efficient administration of…

The commission, the director or any other agent or agents designated by the commission may: 1. Make private or public investigations within or outside this state that the commission deems necessary to determine whether any person has violated or is about to violate this chapter o…

A. For the purpose of investigations or hearings that, in the opinion of the commission, are necessary and proper for the enforcement of this chapter, any member of the commission, the director or any officer or officers designated by the commission may administer oaths and affir…

A. If a person refuses to obey a subpoena or citation issued by the commission, any member of the commission, the director or any officer designated by the commission, the superior court in Maricopa county, on application by the commission, shall issue to the person an order requ…

The director may formally respond to written requests from interested persons for interpretative no-action letters as provided in section 44-1826.

A. A person shall not transact business in this state as an investment adviser or investment adviser representative unless any of the following applies: 1. The person is licensed under this article. 2. The person is a federal covered adviser and has made a notice filing under thi…

A. An investment adviser is not required to be licensed or make a notice filing under this chapter if that investment adviser does not have a place of business in this state and either: 1. Its only clients in this state are investment companies, other investment advisers, dealers…

A. Any person may apply for licensure as an investment adviser. The applicant shall sign an application for licensure. B. An application for licensure as an investment adviser shall be filed with the commission through the IARD. If the IARD does not provide for receipt of a filin…

The commission or the director may require submission of additional information regarding an applicant's previous history, record or business experience as the commission or director deems necessary to determine whether an applicant should be licensed as an investment adviser or …

A. If an applicant for licensure as an investment adviser fully complies with this article and commission rules adopted under this article, the director shall license the applicant as an investment adviser, unless the commission finds cause for denial as provided in article 6 of …

A. Any individual may apply for licensure as an investment adviser representative. An application for licensure as an investment adviser representative shall be signed by the applicant and by the licensed or federal covered adviser employing or intending to employ the applicant. …

A. If an applicant for licensure as an investment adviser representative fully complies with this article and commission rules adopted under this article, the director shall license the applicant as an investment adviser representative, unless the commission finds cause for denia…

A. All licenses expire on December 31 of each year unless renewed before expiration by payment through the IARD of the fees prescribed by section 44-3181. If the IARD does not provide for receipt of a filing, the filing may be made with the commission by mail or any other reasona…

A. In order to retain licensure, licensed investment advisers and investment adviser representatives shall file the following with the commission through the IARD: 1. A supplemental statement showing any material changes in the facts contained in the original application for lice…

A. The annual nonrefundable license fee for each licensed investment adviser and investment adviser representative and the annual nonrefundable notice filing fee for each federal covered adviser shall be paid to the commission on or before the last working day of December. The an…

A. After a hearing or notice and an opportunity for a hearing as provided in article 7 of this chapter, the commission may enter an order suspending for a period of not more than one year, denying or revoking the license of an investment adviser or investment adviser representati…

A. If, after a hearing or notice and an opportunity for a hearing as provided in article 7 of this chapter, the commission finds grounds to deny, suspend or revoke the license of an investment adviser or investment adviser representative, the director shall enter an order denying…

The commission may order a hearing on its own initiative or at the written request of any interested person, either before or after licensure of an investment adviser or investment adviser representative: 1. For the purpose of administering or obtaining information necessary in t…

A. Before entering an order denying, suspending or revoking the license of an investment adviser or investment adviser representative pursuant to article 6 of this chapter, the commission shall send to the investment adviser or investment adviser representative, and, if an invest…

A. Any hearing under this article may be held before the commission, a member of the commission, the director or any other authorized officer of the commission as the commission directs. B. Conduct of the hearing is governed by this section and by the rules of practice and proced…

The commission may institute or grant rehearings on application made within twenty calendar days after entry of an order or decision. Unless otherwise ordered, filing an application for rehearing does not stay the commission’s decision or order. If the commission does not grant a…

Decisions of the commission pursuant to this chapter are subject to judicial review in superior court in Maricopa county pursuant to title 12, chapter 7, article 6.

A. It is a fraudulent practice and unlawful for a person, in connection with a transaction or transactions within or from this state involving the provision of investment advisory services, directly or indirectly, to do any of the following: 1. Employ any device, scheme or artifi…

If an act, practice or transaction that constitutes a violation of section 44-3151 or article 9 of this chapter is alleged in a complaint filed by this state or an agency of this state, the commission may petition the superior court in Maricopa county for the appointment of a con…

Sections 44-2012 through 44-2017 apply to this chapter.

A. The superior court has jurisdiction over violations of this chapter, the rules and orders of the commission adopted or issued under this chapter and all actions brought to enforce any liability or duty created under this chapter, except actions or proceedings brought under sec…

If it appears to the commission, either on complaint or otherwise, that any person has engaged in, is engaging in or is about to engage in any act, practice or transaction that constitutes a violation of this chapter or any rule or order of the commission adopted or issued under …

If a defense in any civil or criminal action is based on any exemption provided for in this chapter, the burden of proving the existence of the exemption is on the party raising the defense, and it is not necessary to negate the exemption in any petition, complaint, information o…

A certificate signed by the director and under seal of the commission showing that a notice filing has or has not been filed as provided in article 4 of this chapter or that an investment adviser or investment adviser representative has or has not been licensed as provided in art…

A certificate signed by the director, and under seal of the commission, in regard to the record of any proceeding under this chapter for denial, suspension or revocation of the license of any investment adviser or investment adviser representative constitutes evidence of the reco…

A. A person who, in an administrative action, is found to have violated this chapter or any rule or order of the commission may be assessed an administrative penalty by the commission, after a hearing, of not more than one thousand dollars for each violation. B. Any administrativ…

In an action brought under this article, the commission or the attorney general is entitled to recover costs that in the discretion of the court may include an amount representing reasonable attorney fees and investigative expenses for services rendered.

A. An investment management regulatory and enforcement fund is established and shall be administered by the commission under the conditions and for the purposes provided by this section. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of ap…

Except as otherwise provided by law, this state, any political subdivision of this state, the commission, the director or any state officer, agent or employee acting in good faith is not liable for any injury or damage to investors or the general public resulting from any actual …

A. The names of complainants and all information or documents obtained by any officer, employee or agent of the commission, including the shorthand reporter or stenographer transcribing the reporter's notes, in the course of any examination or investigation are confidential unles…

A. Securities that are issued by an open-end company or unit investment trust may be offered for sale and sold in this state if the commission receives all of the following: 1. The documents that are filed with the SEC and that are required by the commission. 2. A consent to serv…

A. An open-end company or a unit investment trust shall file a notice in order to offer for sale or sell an indefinite amount of securities with the commission. B. The initial notice filing of an open-end company is effective from the later of receipt by the commission or the eff…

A. The sales report filed with the commission shall specify the total amount of sales made to persons in this state during the time periods specified in this section together with such other information the commission designates by rule or otherwise. B. An issuer that elected to …

A. When filing its initial notice filing, an open-end company shall pay a nonrefundable notice filing fee for sales to be made during the initial notice period. The open-end company may elect to pay either a minimum fee of two hundred dollars or a maximum fee of three thousand fi…

A. Securities that are issued by a closed-end company may be offered for sale and sold in this state if the commission receives all of the following from the closed-end company: 1. The documents that are filed with the SEC and that are required by the commission. 2. A consent to …