Section 302.061. Auctioneers exemption from broker-dealer and agent registration

(a) Under the authority contained in section 302(f) of the act (70 P. S. § 1-302(f)), the Commission deems it appropriate and in the public interest to exempt persons from the broker-dealer and agent registration provisions of section 301 of the act (70 P. S. § 1-301) if all of the following conditions are met:

(1) The person meets one of the following conditions:

(i) Is licensed as an auctioneer, apprentice auctioneer, auction company or auction house under the Auctioneers License Act (AALA) (63 P. S. § § 734.1—734.34).

(ii) Is exempt from registration under section 3(h) of the AALA (63 P. S. § 734.3(h)).

(iii) Holds a special license to conduct an auction under section 3(i) of the AALA.

(2) The person effects transactions in securities solely at an ‘‘auction’’ or at a ‘‘sale at auction’’ as these terms are defined in the AALA.

(3) The person engages only in effecting transactions in securities at an auction or for sale at auction which constitute a ‘‘nonissuer transaction’’ as that term is defined in section 102(m) of the act (70 P. S. § 1-102(m)).

(4) The person does not effect transactions in securities at an auction or for sale at auction more than three times in any consecutive period of 24 months.

(5) The person and any affiliate of the person currently is not subject or, within the past 10 years, was not subject to any of the following:

(i) An order described in section 305(a)(iv) of the act (70 P. S. § 1-305(a)(iv)).

(ii) An injunction described in section 305(a)(iii) of the act.

(iii) A criminal conviction described in section 305(a)(ii) of the act.

(iv) An order of the Commission issued under section 512 of the act (70 P. S. § 1-512).

(v) A court order finding civil contempt under section 509(c) of the act (70 P. S. § 1-509(c)).

(vi) An order of the Commission imposing an administrative assessment under section 602.1 of the act (70 P. S. § 1-602.1) which has not been paid in full.

(b) Solely for purposes of subsection (a)(3), a transaction where a bank, as that term is defined in section 102(d) of the act (70 P. S. § 1-102(d)), acting as a fiduciary under a trust agreement, estate administration or other similar relationship, causes the bank’s securities to be offered and sold at auction from such accounts shall be deemed to be a nonissuer transaction.

The provisions of this § 302.061 adopted December 4, 1981, effective December 5, 1981, 11 Pa.B. 4196; amended December 28, 2001, effective December 29, 2001, 31 Pa.B. 7032; transferred and renumbered from 64 Pa. Code § 302.061, December 14, 2012, effective December 15, 2012, 42 Pa.B. 7533. Immediately preceding text appears at serial pages (317620) to (317621).

Notation

Authority

The provisions of this § 302.061 amended under sections 302(f) and 609(a) of the Pennsylvania Securities Act of 1972 (70 P. S. § § 1-302(f) and 1-609(a)).