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specified in Section 602(c). If the individual invokes the | | privilege against self-incrimination, Section 602(d) allows the | | administrator to apply to the appropriate court to compel testimony | | under the "use immunity" provision barring the record compelled or | | other evidence obtained from being used in a criminal case. See | | People v. District Co. of Arapahoe County, 894 P.2d 739 (Colo. | | 1995). The phrase "directly or indirectly" in Section 602(e) is | | intended to include testimony, other evidence, or other information | | derived from immunized testimony, statements, records, or evidence. |
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| | | 3. Section 602 is intended to apply generally to securities | | offers and sales under Article 3 and broker-dealer and investment | | adviser activity under Article 4, when there is noncompliance | | with the first sentence of Section 602(c). This subsection does | | not limit the powers of an administrator under other provisions | | of this Act. |
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| | | 4. A court may quash a subpoena for good cause under Section | | 602(d). The court may decline to enforce a subpoena that is | | arbitrary, capricious, or oppressive. |
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| | | 5. Where appropriate under Section 602(f), an administrator | | could move to authorize admission of a requesting state's | | attorney under existing pro hac vice rules. |
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| | | 6. Section 602(f) is consistent with the Securities | | Litigation Uniform Standard Act of 1998 which provides in Section | | 102(e): |
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| | | The Securities and Exchange Commission, in consultation | | with State securities commissions (or any agencies or | | offices performing like functions), shall seek to encourage | | the adoption of State laws providing for reciprocal | | enforcement by State securities commissions of subpoenas | | issued by another State securities commission seeking to | | compel persons to attend, testify in, or produce documents | | or records in connection with an action or investigation by | | a State securities commission of an alleged violation of | | State securities laws. |
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| | | 7. There are limitations on financial institutions being | | subject to visitorial powers by State officials, such as those | | affecting national banks contained in 12 U.S.C. 484 and 12 C.F.R. | | Sec. 7.4000. Law outside this Act may place similar limits on | | state chartered financial institutions being subjected to | | visitorial powers. This Act does not negate these limitations. |
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