Substitute House Bill No. 6875 amends the Connecticut Uniform Securities Act by introducing new provisions and modifying existing regulations related to the registration and operation of broker-dealers, agents, and investment advisers. Key changes include the stipulation that no person shall transact business as a broker-dealer or agent unless registered, and it prohibits transactions that violate sanctions imposed by the Securities and Exchange Commission or self-regulatory organizations. The bill also requires broker-dealers and investment advisers to promptly notify the commissioner of any changes in their agents or branch office management. Notably, it inserts "Except as provided in subsection (f) of this section, no" in place of "No" in several instances, emphasizing the conditional nature of these regulations.

Additionally, the bill introduces new definitions and provisions concerning investment advisers and business combinations involving shell companies, including criteria for what constitutes a business combination related shell company. It exempts certain investment advisers from registration requirements and outlines specific scenarios that would disqualify merger and acquisition broker-dealers from claiming exemptions. The bill mandates that agents participate in a continuing education program and expands the commissioner's powers regarding the denial, suspension, or revocation of registrations. Furthermore, it establishes new requirements for individuals and entities selling covered securities, including a consent to service of process and a notice filing for Tier 2 offerings, while repealing outdated language to enhance regulatory clarity and consumer protection.

Statutes affected:
Raised Bill:
BA Joint Favorable:
File No. 188:
Public Act No. 25-85: