3 AAC 08.055. Advertising on the internet by issuers, broker-dealers, state investment advisers, broker-dealer agents, and investment adviser representatives.

(a) An issuer, broker-dealer, state investment adviser, federal covered adviser, agent, or investment adviser representative registered or required to be registered under AS 45.55 who distributes, through communications made on the internet, information on available products and services that are subject to AS 45.55 does not transact or conduct business in this state for purposes of AS 45.55.030 (a), (c), or (e), regardless of whether those communications are directed generally to persons having access to the internet, transmitted through postings on electronic bulletin boards, or displayed on home pages, on websites, or by similar methods, if

(1) the internet communication contains a legend that clearly states that the issuer, broker-dealer, state investment adviser, federal covered adviser, agent, or investment adviser representative

(A) may transact business subject to AS 45.55 in this state only upon registration or a notice filing as required under AS 45.55, unless excluded or exempted from registration or notice requirements; and

(B) may not make a follow-up, individualized response to a person in this state that involves effecting or attempting to effect a transaction in securities, or the rendering of personalized investment advisory services for compensation, unless the issuer, broker-dealer, state investment adviser, federal covered adviser, agent, or investment adviser representative complies with the registration or notice requirements of AS 45.55, or unless an applicable exemption or exclusion from those requirements applies;

(2) the internet communication contains a mechanism, including technical "firewalls" or other implemented policies and procedures, reasonably designed to ensure that before any subsequent, direct communication with prospective customers or clients in this state, the issuer, broker-dealer, state investment adviser, federal covered adviser, agent, or investment adviser representative complies with the registration or notice requirements of AS 45.55, or qualifies for an exemption or exclusion from those requirements;

(3) the internet communication does not effect or attempt to effect a transaction in securities or the delivery of personalized investment advice for compensation in this state, and is limited to the dissemination of general information on products and services; and

(4) in the case of an agent or investment adviser representative,

(A) the association of the agent or the investment adviser representative with the broker-dealer, state investment adviser, or federal covered adviser is prominently disclosed within the internet communication;

(B) the broker-dealer, state investment adviser, or federal covered adviser with whom the agent or investment adviser representative is associated retains responsibility for reviewing and approving the content of any internet communication by an agent or investment adviser representative;

(C) the broker-dealer, state investment adviser, or federal covered adviser with whom the agent or investment adviser representative is associated first authorizes the distribution of information on the particular products and services through the internet communication; and

(D) in disseminating information through the internet communication, the agent or investment adviser representative acts within the scope of the authority granted by the broker-dealer, state investment adviser, or federal covered adviser.

(b) This section does not relieve an issuer, broker-dealer, state investment adviser, federal covered adviser, agent, or investment adviser representative from compliance with the applicable registration or notice requirements or antifraud or related provisions of AS 45.55.

(c) For purposes of this section, the internet includes the world wide web and similar proprietary or common carrier electronic systems.

History: Eff. 4/19/2000, Register 154; am 6/8/2001, Register 158

Authority: AS 45.55.150

AS 45.55.950

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