Substitute House Bill No. 6875 amends the Connecticut Uniform Securities Act to enhance the regulation of broker-dealers, agents, and investment advisers. Key provisions include the insertion of language that mandates registration for individuals transacting as broker-dealers or agents, ensuring compliance with sanctions from the Securities and Exchange Commission. The bill also requires broker-dealers and investment advisers to register their branch offices and notify the commissioner of any management or location changes. Additionally, it modifies exemption criteria for investment advisers, allowing certain advisers to bypass registration under specific conditions, while introducing a notice of exemption requirement and a nonrefundable fee.

The bill further clarifies the roles of merger and acquisition broker-dealers, establishing definitions and criteria for business combinations involving privately held companies. It specifies scenarios for broker-dealers to engage in transactions and outlines their responsibilities regarding disclosure and consent. The legislation also updates requirements for ceasing business operations, mandates written notice to clients, and allows for continued registration under certain conditions. Notably, it expands the commissioner’s authority to impose censure or bar individuals based on various violations, while also modifying the requirements for selling covered securities. Overall, the bill aims to streamline regulatory processes and enhance investor protection within Connecticut's financial services sector.

Statutes affected:
Raised Bill:
BA Joint Favorable:
File No. 188: