§ 2.7.1 LICENSING AND BONDING REQUIREMENTS

• Jurisdiction: Arizona

§ 2.7.1 Licensing and Bonding Requirements

In 1917, the legislature supplemented the 1912 Investment-Company Act with new licensing and registration legislation for brokers who bought and sold publicly traded securities.²⁹⁷ Agents selling on behalf of an investment company were already required to register with the Corporation Commission.²⁹⁸ "Broker" was defined as "every person who buys or sells or contracts to buy or sell, as agent for or representative of or for or on account of another, any security or commodity on or through any exchange or board of trade or other public market."²⁹⁹ Brokers were required to obtain a license and post a $5,000 bond.³⁰⁰ The State Bank Examiner was empowered to inspect the broker's records and to suspend the broker's license if the broker became insolvent or was doing business in violation of the Act.³⁰¹

The bond was to be made "conditioned upon the faithful compliance with the provisions of law [the 1917 Act] by said applicant, and provide that upon failure to so comply, the applicant shall be liable to any and all persons who...