Current through Register Vol. 35, No. 18, September 24, 2024
A.
Broker-dealers and agents who use the internet to distribute information on
available products and services through communications made on the internet
directed generally to anyone having access to the internet and transmitted
through internet communications shall not be considered to be "transacting
business" in this state for purposes of Sections
58-13C-401
A and
58-13C-402
A of the New Mexico Uniform Securities Act based solely on that fact, provided
that:
(1) the internet communication contains
a legend in which it is clearly stated that:
(a) the broker-dealer or agent in question
may only transact business in this state if first registered, excluded, or
exempted from state broker-dealer or agent registration requirements;
and
(b) follow-up, individualized
responses to persons in this state by the broker-dealer or agent that involve
either effecting or attempting to effect transactions in securities, or
rendering of personalized investment advice for compensation, will not be made
without compliance with broker-dealer or agent registration requirements, or an
applicable exemption or exclusion;
(2) the internet communication contains a
mechanism which includes, but is not limited to, technical "firewalls" or other
implemented policies and procedures, designed reasonably to ensure that before
any subsequent, direct communication with prospective customers or clients in
this state, the broker-dealer and agent are first registered in this state or
qualify for an exemption or exclusion from the registration
requirement;
(3) the internet
communication is limited to the dissemination of general information on
products and services and does not involve either effecting or attempting to
effect transactions in securities, or rendering personalized investment advice
for compensation in this state over the internet; and
(4) with respect to broker-dealer or agent
internet communications:
(a) the broker-dealer
affiliation of the agent is prominently disclosed within the internet
communication;
(b) the
broker-dealer with whom the agent is associated retains responsibility for
reviewing and approving the content of any internet communication by
agent;
(c) the broker-dealer with
whom the agent is associated first authorizes the distribution of information
on the particular products and services through the internet communication;
and
(d) when disseminating
information through the internet communication, the agent acts within the scope
of the authority granted by the broker-dealer.
B. This rule extends to state broker-dealer
and agent registration requirements only, and does not excuse compliance with
applicable securities registration, antifraud or related provisions.
C. Nothing in this rule shall be construed to
affect the activities of any broker-dealer or agent engaged in business in this
state that is not subject to the jurisdiction of the director as provided in
the National Securities Markets Improvements Act of 1996, as amended.
