§ 2.8.1

• Jurisdiction: Arizona

§ 2.8.1 Licensing Requirements

The 1921 Act expanded the licensing scheme established in the 1912 and 1917 Acts. The use of licenses that are administratively issued and subject to revocation was used from the earliest blue-sky laws through those that prevail today. The 1912 Act required an investment company's agents to register with the Corporation Commission,³¹¹ but the Act did not set standards for obtaining a permit.³¹² The 1917 Act applied only to brokers selling commodities or securities in public markets.³¹³ The 1921 Act supplemented the 1912 and 1917 licensing laws through a statutory scheme designed specifically to regulate the dealers and agents who sold nonpublic investment-company securities.³¹⁴

The 1921 Act did this through new laws setting administratively enforced licensing standards for dealers and the agents who worked under them.³¹⁵ All dealers selling an investment company's securities were required to apply by written application to the Corporation Commission for a permit.³¹⁶ The permit was to be issued only if the Commission was satisfied, on the basis of the application's information and investigation, that (1) the investment company was solvent and its plan of business was "fair, just and equitable to investors" and (2) nothing in the dealer's sales methods...