This bill amends the Uniform Securities Act to exempt certain private residences designated by broker-dealers as supervisory locations from being classified as branch offices. Specifically, it introduces new legal language stating that while locations responsible for supervising broker-dealer agents at non-branch locations are typically considered branch offices, a private residence designated by a broker-dealer as a residential supervisory location in compliance with FINRA Rule 3110.19 will not be classified as such. This change aims to provide clarity and flexibility for broker-dealers in managing their supervisory functions.

Additionally, the bill defines "residential supervisory location" as a private residence from which an associated person performs supervisory functions, provided it has been designated as such by the broker-dealer in accordance with the relevant FINRA rule. The effective date for this act is set for June 19, 2026, upon its passage. The amendments reflect a significant shift in how residential locations are treated under securities regulation, potentially easing regulatory burdens for broker-dealers operating in residential settings.

Statutes affected:
Introduced: 421-B:1-102
Version adopted by both bodies: 421-B:1-102
CHAPTERED FINAL VERSION: 421-B:1-102
SB496 text: 421-B:1-102