H 3973 Session 109 (1991-1992)
H 3973 General Bill, By H.H. Keyserling
A Bill to amend Section 35-1-510, Code of Laws of South Carolina, 1976,
relating to registered broker-dealers, agents, investment advisers, and
investment adviser representatives, so as to broaden and clarify the
categories of persons not required to post bond.
05/02/91 House Introduced and read first time HJ-14
05/02/91 House Referred to Committee on Labor, Commerce and
Industry HJ-14
01/22/92 House Committee report: Favorable with amendment Labor,
Commerce and Industry HJ-3
01/23/92 House Amended HJ-669
01/23/92 House Read second time HJ-670
01/28/92 House Read third time and sent to Senate
01/29/92 Senate Introduced and read first time SJ-2
01/29/92 Senate Referred to Committee on Banking and Insurance
Indicates Matter Stricken
Indicates New Matter
AMENDED
January 23, 1992
H. 3973
Introduced by REP. Keyserling
S. Printed 1/23/92--H.
Read the first time May 2, 1991.
A BILL
TO AMEND SECTION 35-1-510, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO REGISTERED BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND
INVESTMENT ADVISER REPRESENTATIVES, SO AS TO
BROADEN AND CLARIFY THE CATEGORIES OF PERSONS NOT
REQUIRED TO POST BOND.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 35-1-510 of the 1976 Code is amended to read:
"Section 35-1-510. Registered broker-dealers, agents,
investment advisers, and investment adviser representatives shall post
surety bonds in amounts of fifty thousand dollars for broker-dealers and
investment advisers and ten thousand dollars for agents and investment
adviser representatives, conditioned that the registrant will comply with
the provisions of this chapter and those orders and regulations as the
commissioner may from time to time prescribe. The bond may be so
drawn as to cover the original registration and any renewal of the
registration. Any appropriate deposit of cash or securities must be
accepted in lieu of the bond. Every bond must provide that no suit may
be maintained to enforce any liability on the bond unless brought within
three years after the sale or other act upon which the suit is based and
must also provide that the liability of the surety on each bond to all
persons aggrieved may in no event exceed in the aggregate the penal
sum of the bond. No bond is required for persons who are:
(1) members of the National Association of Security Dealers,
Inc., or the Securities Investor Corporation or (2) investment
advisers or investment adviser representatives who:
(a) are registered with the Securities and
Exchange Commission;
(b) do not have custody of or general power of attorney
over their clients' funds and securities and such lack of custody or power
of attorney is specified by the client's agreement with the investment
adviser or investment adviser representative. A limited power of
attorney which does not allow custody over their clients' funds does not
require bonding; and
(c) file annually with the Securities Commissioner a
current statement of financial condition."
SECTION 2. This act takes effect upon approval by the Governor.
-----XX----- |