HAR §16-38-5.5. Registration; post-effective requirements

(a) Upon approval of the application by the commissioner, a certificate of registration shall be issued certifying that the dealer is authorized to engage in the securities business in this State. (b) Every registrant shall immediately notify the commissioner of any material change in any information, exhibits, or schedules submitted, or circumstances disclosed in its last prior application, by filing a correcting amendment at the time of occurrence or discovery of the changes. Changes that shall be reported under this rule include, but are not limited to, the following: (1) Change in firm name, ownership, management, or control of a dealer; (2) A change in any of its partners, officers, or persons in similar positions; (3) Change in its business address, or the creation or termination of a branch office in Hawaii; (4) Change in type of entity, general plan, or character of dealer's business, method of operation or type of securities in which it is dealing or trading; (5) Material adverse change in financial condition, insolvency, dissolution or liquidation, or impairment of working capital, or noncompliance with the minimum capital or bond requirements provided in sections 16-38-5.2(b) and 16-38-5.3(b); (6) Termination of business or discontinuance of those activities as a dealer or salesperson; and (7) The commencement of any proceeding or action that must be disclosed pursuant to the disciplinary questions on Form BD, including but not limited to, filing of a criminal charge or civil action against a registrant or a partner or officer, in which a fraudulent, dishonest, or unethical act is alleged, or a violation of a securities law or any aspect of the securities business is involved, entry of a court or administrative order or proceeding against a registrant to deny, suspend, or revoke a registration, or threatening to do so, or to enjoin it from engaging in or continuing any conduct or practice in the securities business, or to impose a fine, suspension, or expulsion from the NASD. (c) Registration of successor dealer. In the event that a new dealer becomes the successor and continues the business of a dealer registered pursuant to section 16-38-5.2, the registration of the predecessor dealer shall be deemed to remain §16-38-5.5 38-16 effective as the registration of the successor dealer only if the successor dealer, within thirty days after such succession, files an application for registration on Form BD, and the predecessor dealer files a notice of withdrawal from registration on Form BDW. (1) The registration of the predecessor dealer shall cease to be effective as the registration of the successor dealer forty-five days after the application for registration on Form BD is filed by the successor dealer; and (2) Notwithstanding any other provision of this section, if a new dealer becomes the successor and continues the business of a registered dealer, and the succession is based solely on a change in the predecessor dealer's date or state of incorporation, form of organization, or composition of a partnership, the successor dealer may, within thirty days after the succession, amend the registration of the predecessor dealer on Form BD to reflect these changes. This amendment shall be deemed an application for registration filed by the predecessor dealer and adopted by the successor dealer. [Eff 6/4/70; am 1/1/71; am and ren §16-38-5, 7/30/81; am, ren §16-38-5.5 and comp 10/12/85; am and comp 4/14/03] (Auth: HRS §485-2) (Imp: HRS §485-14)