292.336 Recordkeeping and reporting requirements -- Examination by
commissioner -- Administrative regulations -- Central depository system for
documents.
(1)
(2)
(3)
(4)
(a)
Every registered broker-dealer, firm employing issuer agents, and investment
adviser shall make and keep all accounts, correspondence, memoranda,
papers, books, and other records which the commissioner by rule or order
prescribes.
(b) All records required shall be preserved for three (3) years unless the
commissioner by administrative regulation or order prescribes otherwise for
particular types of records. All required records shall be kept within this state
or shall, at the request of the commissioner, be made available at any time for
examination by him or her either in the principal office of the registrant or by
production of exact copies thereof in this state.
(c) If a broker-dealer is registered with the United States Securities and Exchange
Commission, then the books and records required by this section are limited to
those that the Securities Exchange Act of 1934, 15 U.S.C. secs. 78a et seq.,
requires the broker-dealer to maintain.
(d) If an investment adviser has his or her principal place of business in another
state, then the requirements of this section shall be limited to the books and
records requirements of that state, if the adviser is registered in that state and
is in compliance with its recordkeeping requirements.
(a) Every registered broker-dealer, investment adviser, and firm employing issuer
agents shall file such reports as required by administrative regulation or order
under this chapter.
(b) If a broker-dealer is registered with the United States Securities and Exchange
Commission, then the reports required by this section are limited to those
required under the Securities Exchange Act of 1934, 15 U.S.C. secs. 78a et
seq.
(c) If an investment adviser has his or her principal place of business in another
state, then the requirements of this section shall be limited to the reporting
requirements of that state, if the adviser is registered in that state and in
compliance with its reporting requirements.
If the information contained in any document filed is or becomes inaccurate or
incomplete in any material respect, then the broker-dealer, investment adviser, or
firm employing issuer agents, as applicable, shall promptly file a correcting
amendment. In the case of a covered adviser, the adviser shall file only copies of
those documents required to be filed with the Securities and Exchange Commission.
(a) The commissioner may conduct examinations, within or outside this state, of
each broker-dealer, issuer agent, or investment adviser at such times and in
such scope as he or she determines.
(b) Examinations of each broker-dealer, issuer agent, or investment adviser, may
be made without prior notice to the broker-dealer, issuer agent, or investment
adviser. The expense reasonably attributable to any such examination shall be
(5)
(6)
(7)
paid by the broker-dealer, issuer agent, or investment adviser whose business
is examined, but the expense so payable shall not exceed an amount which the
commissioner by administrative regulation prescribes.
(c) For the purpose of avoiding unnecessary duplication of examinations, the
commissioner, insofar as he or she deems it practicable in administering this
subsection, may cooperate with securities administrators of other states, the
Securities and Exchange Commission, and any national securities exchange or
national securities association registered under the Securities Exchange Act of
1934, 15 U.S.C. secs. 78a et seq.
The commissioner may by administrative regulation prohibit unreasonable charges,
profits, commissions, or other compensation of broker-dealers and investment
advisers.
The commissioner may promulgate administrative regulations to prescribe rules for
the conduct of business by broker-dealers and investment advisers which he or she
finds appropriate in the public interest and for the protection of investors.
The commissioner may enter into an arrangement, agreement, or other working
relationship with federal, other state, and self-regulatory authorities whereby
documents may be filed and maintained in a central depository system with the
Financial Industry Regulatory Authority (FINRA) or other agencies or authorities.
Effective: July 15, 2010
History: Created 2010 Ky. Acts ch. 82, sec. 8, effective July 15, 2010.
Legislative Research Commission Note (7/15/2010). References to the "executive
director" of financial institutions in this section, as created by 2010 Ky. Acts ch. 82,
sec. 8, have been changed in codification to the "commissioner" of financial
institutions to reflect the reorganization of certain parts of the Executive Branch, as
set forth in Executive Orders 2009-535 and 2009-1086 and confirmed by the General
Assembly in 2010 Ky. Acts ch. 24. These changes were made by the Reviser of
Statutes pursuant to 2010 Ky. Acts ch. 24, sec. 1938.
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