Administration.

D.C. Code div. V, tit. 31, ch. 56, subch. VII

in effect

D.C. Code § 31-5607.01 Administration of chapter.

31-5607.01. Administration of chapter. This chapter shall be administered by the Commissioner. (Oct. 26, 2000, D.C. Law 13-203, § 701, 47 DCR 7837.)

D.C. Code § 31-5607.02 Prohibitions on use of information.

31-5607.02. Prohibitions on use of information. The Commissioner or an employee of the Commissioner shall not use for personal gain or benefit information filed with or obtained by the Commissioner which is not public information. The Commissioner or an employee of the Commissioner shall not conduct securities dealings based upon information filed with or obtained by the Commissioner, even though public, if there has not been sufficient time for the securities markets to assimilate the information. (Oct. 26, 2000, D.C. Law 13-203, § 702, 47 DCR 7837.)

D.C. Code § 31-5607.03 Public information; confidentiality.

31-5607.03. Public information; confidentiality. (a) Except as provided in subsection (b) of this section, information and documents filed with, or obtained by, the Commissioner shall be available for public examination under subchapter II of Chapter 5 of Title 2. (b) The following information and documents shall not constitute public information under subsection (a) of this section: (1) Information or documents obtained by the Commissioner in connection with an investigation under § 31-5606.01; and (2) Information or documents filed with the Commissioner in connection with a registration statement under subchapter III of this chapter or a report under § 31-5602.04 constituting trade secrets or commercial or financial information of a person for which a person is entitled to a claim of confidentiality or privilege. (Oct. 26, 2000, D.C. Law 13-203, § 703, 47 DCR 7837.)

D.C. Code § 31-5607.04 Cooperation with other agencies.

31-5607.04. Cooperation with other agencies. (a) To encourage uniform interpretation and administration of this chapter and effective securities regulation and enforcement, the Commissioner may cooperate with the securities agencies or administrators of one or more states, Canadian provinces or territories, or another country, the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Securities Investor Protection Corporation, any self-regulatory organization, any national or international organization of securities officials or agencies, and any governmental law enforcement or regulatory agency. (b) The cooperation authorized by subsection (a) shall include the following actions: (1) Establishing a central depository for registration under this chapter and for documents or records required or allowed to be maintained under this chapter; (2) Making a joint registration examination or investigation; (3) Holding a joint administrative hearing; (4) Filing and prosecuting a joint civil or administrative proceeding; (5) Sharing and exchanging personnel; (6) Sharing and exchanging information and documents; and (7) Formulating rules or proposed rules, statements of policy, guidelines, and interpretative opinions and releases. (Oct. 26, 2000, D.C. Law 13-203, § 704, 47 DCR 7837.)

D.C. Code § 31-5607.05 Rules, forms, and orders.

31-5607.05. Rules, forms, and orders. (a) In addition to specific authority otherwise granted by this chapter, the Commissioner: (1) Shall adopt, as a rule, a description of the general course and method of where and how a person may obtain information or make a submission or request; (2) Shall adopt rules of practice setting forth the nature and requirements of all formal and informal procedures available to a person, including all forms that are to be used by a person dealing with the Commissioner; (b) To keep rules adopted by the Commissioner in harmony with the regulations adopted by the Securities and Exchange Commission under the federal securities laws and to encourage uniformity with the rules of securities agencies and administrators in other states, the Commissioner, so far as is consistent with this chapter, shall take into consideration the regulations adopted by the Securities and Exchange Commission and the rules of securities agencies and administrators in other states which have enacted a law comparable to this chapter. (c) Unless specifically provided in this chapter to the contrary, a rule or order may not be adopted, amended, or repealed unless the Commissioner determines that the action is in the public interest and appropriate for the protection of investors and is consistent with the purposes fairly intended by the policy and provisions of this chapter. (d) The Commissioner may, by rule or order, prescribe the form and content of financial statements required under this chapter, the circumstances under which consolidated financial statements must be filed, and whether a required financial statement must be certified and by whom. Unless the Commissioner provides, by rule or order, otherwise, and subject to the limitations of section 15 of the Securities Exchange Act of 1934 [15 U.S.C. § 78o] and section 222 of the Investment Advisers Act of 1940 [15 U.S.C. § 80b-18a], a financial statement required under this chapter must be prepared in accordance with generally accepted accounting principles or other accounting principles as are prescribed for the issuer of the financial statement by the Securities and Exchange Commission. (Oct. 26, 2000, D.C. Law 13-203, § 705, 47 DCR 7837.)

D.C. Code § 31-5607.06 Consent to service of process.

31-5607.06. Consent to service of process. (a) An applicant for licensure or registration under this chapter, and every issuer that proposes to offer a security in the District through any person acting as an agent, shall file with the Commissioner, in such form as may be prescribed by rule, an irrevocable consent appointing the Commissioner to be the person’s attorney to receive service of any lawful process in any non-criminal suit, action, or proceeding against the person or the person’s successor, executor or administrator which arises under this chapter, or any rule or order hereunder, after the consent is filed, with the same force and validity as if served personally on the person filing the consent. (b) A person who has filed a consent complying with subsection (a) of this section in connection with a previous application for licensing, registration, or notice filing need not file an additional consent. (c) If any person, including a nonresident of the District, engages in conduct prohibited or made actionable by this chapter or a rule or order hereunder, and the person has not filed a consent to service of process under subsection (a) of this section, and personal jurisdiction over the person cannot otherwise be obtained in the District, the conduct shall be deemed the person’s appointment of the Commissioner to be the person’s attorney to receive service of any lawful process in any non-criminal suit, action, or proceeding against the person or the person’s successor, executor or administrator, which grows out of the conduct and which is brought under this chapter, or a rule or order adopted under this chapter, with the same force and validity as if served on the person personally. (d) Service under subsection (a) or (c) of this section may be made by leaving a copy of the process in the Commissioner’s office, but it shall not be effective unless: (1) The plaintiff, who may be the Commissioner in a suit, action, or proceeding instituted by the Commissioner, sends notice of the service and a copy of the process by registered or certified mail to the defendant or respondent at that person’s last address on file with the Commissioner, or takes other steps reasonably calculated to give actual notice; and (2) The plaintiff’s affidavit of compliance with this subsection is filed on or before the return day of the process, if any, or within such further time as the court or the Commissioner, in a proceeding before the Commissioner, allows. (e) Service as provided in subsection (d) of this section may be utilized in a proceeding before the Commissioner or by the Commissioner in a proceeding in which the Commissioner is the moving party. (f) When process is served under this section, the court, or the Commissioner, in a proceeding before the Commissioner, shall order such continuance as may be necessary to afford the defendant or respondent reasonable opportunity to defend. (Oct. 26, 2000, D.C. Law 13-203, § 706, 47 DCR 7837.)

D.C. Code § 31-5607.07 Administrative files and records.

31-5607.07. Administrative files and records. (a) The Commissioner shall keep one or more registers of all applications for licensing and registration under this chapter, all notice filings, licenses and registration statements that become effective under this chapter, all disciplinary and enforcement orders issued and reports of investigation made under this chapter, all declaratory orders and rulings issued under this chapter, and all other orders issued under this chapter. (b) The Commissioner shall retain: (1) All licenses and related applications and all registration statements and notice filings currently effective or that have been effective within the last 5 years; (2) All licenses and related applications and all registration statements that have been denied, suspended, or revoked within the last 5 years and the order of suspension, denial, or revocation; (3) All investigatory files under this chapter that are open or that have been closed within the last 5 years and any disciplinary or closure orders pertaining to the files; (4) The transcript or record of all administrative hearings held during the last 5 years; and (5) All other orders of the Commissioner entered under this chapter. (c) All records required to be maintained pursuant to subsections (a) and (b) of this section may be maintained in any form of data storage. Upon request, the Commissioner shall certify under the seal of the Department a copy as being a true and correct copy of the records maintained by the Department. The Commissioner may, by rule, establish reasonable charges for furnishing or certifying copies. In an investigation or proceeding, a copy so certified shall be prima facie evidence of the contents of the records certified. (Oct. 26, 2000, D.C. Law 13-203, § 707, 47 DCR 7837.)

D.C. Code § 31-5607.08 Provisions applicable to administrative proceedings.

31-5607.08. Provisions applicable to administrative proceedings. (a) All actions of the Commissioner, including administrative proceedings, adoption of rules, and issuance of orders shall be governed by subchapter I of Chapter 5 of Title 2; provided, that: (1) The issuance of a stop order under § 31-5603.03(e) shall be governed by § 31-5603.03(e); and (2) The issuance of a summary order under § 31-5606.02(a) shall be governed by § 31-5606.02(a). (Oct. 26, 2000, D.C. Law 13-203, § 708, 47 DCR 7837.)

D.C. Code § 31-5607.09 Electronic filings.

31-5607.09. Electronic filings. (a) The Commissioner may, by rule or order, prescribe acceptable methods for filing applications, forms, notices, prospectuses, registration statements, or other documents with the Department in electronic form. (b) The Commissioner may, by rule or order, prescribe acceptable methods for executing electronic signatures or otherwise for documents filed with the Department in electronic form. (c) An electronic signature used in connection with an electronic filing shall have the same legal effect as a manual signature. (Oct. 26, 2000, D.C. Law 13-203, § 709; as added June 25, 2002, D.C. Law 14-150, § 2(l), 49 DCR 4238.)

Source: Council of the District of Columbia (code.dccouncil.gov)URL: https://code.dccouncil.gov/us/dc/council/code/titles/31/chapters/56/subchapters/VIIFetched: 10/21/2026