Michigan Issues Third Transition Order Following Adoption of New Act

A third transition order affecting three securities transaction exemptions, as well as broker-dealers, agents, investment advisers and investment adviser representatives, was issued by the Michigan Office of Financial and Insurance Regulation in connection with adoption of the new Michigan Uniform Securities Act on October 1, 2009.

Exemptions for capital stock issued by professional service corporations, sales of membership interests in professional limited liability companies, and for persons engaged in the oil, gas and mineral business were re-adopted in this transition order, as were examination requirements for broker-dealer proprietorships and agents. Also set forth in the order were minimum net capital and recordkeeping requirements for broker-dealers and investment advisers, brochure disclosure requirements for investment advisers, and administrator authorization to withdraw incomplete broker-dealer, agent, investment adviser and investment adviser representative applications.

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