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investors. An audit or inspection may be made at any time and | | without prior notice. The administrator may copy, require the | | licensee to copy and remove for audit or inspection copies of all | | records the administrator reasonably considers necessary or | | appropriate to conduct the audit or inspection.__Broker-dealers, | | agents, investment advisers and investment adviser representatives | | shall make their records available to the administrator in a | | readable form.__The administrator may assess a reasonable charge | | for conducting an audit or inspection under this subsection. |
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| | | 5.__Custody and discretionary authority bond or insurance.__A | | rule adopted or order issued under this chapter may require a | | broker-dealer or investment adviser that has custody of or | | discretionary authority over funds or securities of a customer or | | client to obtain insurance or post a bond or other satisfactory | | form of security. The administrator may determine the | | requirements of the insurance, bond or other satisfactory form of | | security.__The insurance, bond or other satisfactory form of | | security must permit an action by a person to enforce any | | liability on the insurance, bond or other satisfactory form of | | security if instituted within the time limitations in section | | 16509, subsection 10, paragraph B. |
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| | | 6.__Requirements for custody.__Subject to Section 15(h) of the | | federal Securities Exchange Act of 1934, 15 United States Code, | | Section 78o(h) or Section 222 of the federal Investment Advisers | | Act of 1940, 15 United States Code, Section 80b 22, an agent may | | not have custody of funds or securities of a customer except | | under the supervision of a broker-dealer and an investment | | adviser representative may not have custody of funds or | | securities of a client except under the supervision of an | | investment adviser or a federal covered investment adviser. A | | rule adopted or order issued under this chapter may prohibit, | | limit or impose conditions on a broker-dealer regarding custody | | of funds or securities of a customer and on an investment adviser | | regarding custody of securities or funds of a client. |
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| | | 7.__Investment adviser brochure rule.__With respect to an | | investment adviser licensed or required to be licensed under this | | chapter, a rule adopted or order issued under this chapter may | | require that information or other record be furnished or | | disseminated to clients or prospective clients in this State as | | necessary or appropriate in the public interest and for the | | protection of investors and advisory clients. |
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| | | 8.__Continuing education.__A rule adopted or order issued | | under this chapter may require an individual licensed under | | section 16402 or 16404 to participate in a continuing education | | program approved by the Securities and Exchange Commission and |
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