Section 1-602.1 - Assessments(a)(1) Each agent and investment adviser representative, when applying for an initial license under section 301 or changing employers, shall pay a compliance assessment in accordance with the following schedule: forty-five dollars ($45) for the period July 1, 2013, through June 30, 2016, fifty dollars ($50) for the period July 1, 2016, through June 30, 2019, and fifty-five dollars ($55) thereafter.(2) Each agent and investment adviser representative, when applying for a renewal license under section 301, shall pay a compliance assessment in accordance with the following schedule: thirty dollars ($30) for the period July 1, 2013, through June 30, 2016, thirty-five dollars ($35) for the period July 1, 2016, through June 30, 2019, and forty dollars ($40) thereafter.(3) Each broker-dealer, when applying for an initial or renewal license under section 301, shall pay a compliance assessment in accordance with the following schedule: one hundred seventy- five dollars ($175) for the period July 1, 2013, through June 30, 2019, and two hundred dollars ($200) thereafter.(4) Each investment adviser, when applying for an initial or renewal license under section 301, shall pay a compliance assessment in accordance with the following schedule: one hundred dollars ($100) for the period July 1, 2013, through June 30, 2019, and one hundred twenty-five dollars ($125) thereafter.(5) The assessment for a notice filing by an open-end or closed-end investment company, face amount certificate company or unit investment trust, as such persons are classified in the Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. § 80a-1 et seq.), for an indefinite amount of securities to be offered in this State during the effective period of the notice filing shall be five hundred dollars ($500) beginning with the date of enactment of this paragraph.(b) A registrant, applicant for registration, issuer or other person upon whom the department has conducted an examination, audit, investigation or prosecution and who has been determined by the department to have violated this act or rule or order of the department under this act shall pay for all the costs incurred in the conduct of such examination, audit, investigation or prosecution. These costs shall include, but not be limited to, the salaries and other compensation paid to clerical, accounting, administrative, investigative, examiner and legal personnel, the actual amount of expenses reasonably incurred by such personnel and the department in the conduct of such examination, audit, investigation or prosecution, including a pro rata portion of the department's administrative expenses.(c) After giving notice and opportunity for a hearing, the department may issue an order accompanied by written findings of fact and conclusions of law which imposes an administrative assessment in the amounts provided in paragraph (1) against a broker-dealer, agent, investment adviser or investment adviser representative registered under section 301 or an affiliate of any broker-dealer or investment adviser where the department determines that the person within the previous ten years willfully has violated this act or a rule or order of the department under this act or has engaged in dishonest or unethical practices in the securities business; has taken unfair advantage of a customer; or has failed reasonably to supervise its agents or employes or against any other person if the department determines that the person wilfully violated section 301, 401, 404, 406 through 409 or 512(d) or a cease and desist order issued by the department under section 606(c.1). (1) The department, in issuing an order under this subsection, may impose the administrative assessments set forth below. Each act or omission that provides a basis for issuing an order under this subsection shall constitute a separate violation.(i) In issuing an order against any broker-dealer, agent, investment adviser or investment adviser representative registered under section 301 or an affiliate of any broker- dealer or investment adviser, the department may impose a maximum administrative assessment of up to one hundred thousand dollars ($100,000) for each act or omission that constitutes a violation of the act or rule or order issued under this act or that constitutes a dishonest or unethical practice in the securities business, taking unfair advantage of a customer, or failure to reasonably supervise its agents or employes. If any of the victims of the person's violative conduct were individuals aged 60 or more, the department also may impose a special administrative assessment in addition to the foregoing amounts of up to fifty thousand dollars ($50,000).(ii) In issuing an order against a person for wilful violation of section 401(a) or (c), 404, 406, 408, 409 or 512(d) or for wilful violation of a cease and desist order issued under section 606(c.1), the department may impose a maximum administrative assessment of up to one hundred thousand dollars ($100,000) for each act or omission that constitutes a violation of any of those sections. In addition to the foregoing assessment, the department also may impose a special administrative assessment of up to fifty thousand dollars ($50,000) for each of the provisions described as follows that the department determines are applicable: (A) The person, within seven years prior to the department taking action under this subsection, was the subject of: a criminal felony conviction; an injunction issued by any court of competent jurisdiction; or an order of the Securities and Exchange Commission, the Commodity Futures Trading Commission, the securities, banking or insurance regulator of another state, a Federal banking regulator or the securities, banking or insurance regulatory authority of another country which found that the person wilfully had violated any provision of the Federal or state securities, banking, insurance, or commodities laws or the securities, commodities, insurance or banking laws of another country.(B) The person's violative conduct involved individuals aged 60 or more.(C) The person's violative conduct involved use of the Internet or boiler room tactics which included, without limitation, use of any high-pressure sales tactics designed to create an artificially short time period for which the person being solicited is pressured to make an investment decision or overcome the person's reluctance to commit to the investment being offered, use of scripts designed to allay any objections or concerns expressed by the person being solicited or making repeated telephone calls or sending multiple e-mail messages to the same person pressuring the person to make an immediate investment decision.(iii) In issuing an order against a person for wilful violation of section 401(b) or 407, the department may impose an administrative assessment of up to fifty thousand dollars ($50,000) for each of the criteria described in subclause (ii)(A) and (C) that the department determines are applicable. No assessment shall be imposed under this subclause if the person is subject to an administrative assessment imposed under any other provision of this subsection.(iv) In issuing an order against a person, other than a federally covered adviser, for wilful violation of section 301, the department may impose the following administrative assessments which may be in addition to an administrative assessment imposed under any other provision of this subsection: (A) For a person who at the time of the wilful violation was not registered under section 301, was not registered as a broker or dealer with the United States Securities and Exchange Commission under the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. § 78a et seq.) and was not a member of a national securities association registered under that act, the department may impose a maximum administrative assessment of up to fifty thousand dollars ($50,000) for each act or omission which constitutes a violation of section 301.(B) For a person (not an individual) that at the time of the wilful violation was not registered under section 301 but was registered as a broker or dealer with the United States Securities and Exchange Commission under the Securities Exchange Act of 1934 and was a member of a national securities association registered under that act, the department may impose a maximum administrative assessment of up to fifty thousand dollars ($50,000) for each act or omission which constitutes a violation of section 301. An assessment imposed under this subclause shall be in addition to any liability a person may have under an order issued under section 514.(v) In issuing an order for wilful violation of section 301(c.1)(1)(ii) against a person that is a federally covered adviser, the department may impose the following administrative assessments:(A) Up to one hundred thousand dollars ($100,000) if the number of investment adviser representatives involved in the violation was less than five.(B) Up to two hundred thousand dollars ($200,000) if the number of investment adviser representatives involved in the violation was five or more.(vi) In issuing an order for a wilful violation of section 301(f) against a person that is a federally covered adviser, the department may impose an administrative assessment of two thousand dollars ($2,000).(2) For purposes of determining the amount of administrative assessment to be imposed in an order issued under this subsection, the department shall consider: (i) The circumstances, nature, frequency, seriousness, magnitude, persistence and willfulness of the conduct constituting the violation.(ii) The scope of the violation, including the number of persons in and out of this Commonwealth affected by the conduct constituting the violation.(iii) The amount of restitution or compensation that the violator has made and the number of persons in this Commonwealth to whom the restitution or compensation has been made.(iv) Past and concurrent conduct of the violator that has given rise to any sanctions or judgment imposed by, or pleas of guilty or nolo contendere or settlement with, the department or any securities administrator of any other state or other country, any court of competent jurisdiction, the Securities and Exchange Commission, the Commodity Futures Trading Commission, any other Federal or State agency or any national securities association or national securities exchange as defined in the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. § 78a et seq.).(v) Any other factor that the department finds appropriate in the public interest or for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of this act.(3) An administrative assessment imposed by an order issued under this subsection is not mutually exclusive of any other remedy available under this act.(4) The department shall not impose an administrative assessment with respect to any public proceeding which was instituted prior to the date of its enactment.(d) Each application filed with the department under section 210 by an issuer that has an effective registration statement on file with the department pursuant to section 205 or 206 or an open-end or closed-end investment company, face amount certificate company or unit investment trust, as those persons are classified in the Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. § 80a-1 et seq.), to register securities sold in this State in excess of the aggregate amount of securities registered under section 205 or 206 and each amendment to a notice filing submitted relating to securities sold in the State in excess of those included on an earlier notice filing shall include the payment of an oversale assessment which shall be three times an amount which equals the difference between the registration or notice filing fee that would have been payable under section 602(b.1) based upon the total amount of securities sold in this State and the total registration or notice filing fees previously paid to the department with respect to such registration or notice filing, but in no case shall the oversale assessment be less than three hundred fifty dollars ($350) or be more than three thousand dollars ($3,000).(e) Moneys payable for assessments established by this section shall be collected by the department and deposited into the General Fund and shall be credited to the appropriation of the department for the fiscal year received. These moneys are intended to meet the expenses of the department in administering the provisions of this act, including any or all of the following activities: (1) expenses, including personnel, operating and fixed assets costs, relating to the registration of broker-dealers, agents, investment advisers and investment adviser representatives under section 301 and the conduct of examinations of broker-dealers and investment advisers registered under section 301 and other compliance- related activities of the department;(2) nonpersonnel expenses related to establishing and maintaining an entrepreneur education program to educate small business persons in this Commonwealth as to the issuance of securities as a means of raising capital;(3) nonpersonnel expenses related to establishing and maintaining a securities fraud awareness program to educate public investors in this Commonwealth about fraudulent and manipulative securities practices;(4) nonpersonnel expenses related to conducting enforcement- related activities of the department; and thereafter,(5) other expenses of the department necessary to implement the provisions of this act.Amended by P.L. 678 2014 No. 52, § 27, eff. 8/9/2014.1972, Dec. 5, P.L. 1280, No. 284, § 602.1, added 1993, May 4, P.L. 4, No. 4, § 3, imd. effective. Amended 1994, Dec. 7, P.L. 689, No. 126, § 7, imd. effective; 1998, Nov. 24, P.L. 829, No. 109, § 25, effective in 60 days; 2002, July 4, P.L. 721, No. 108, § 17, effective in 60 days; 2004, Nov. 23, P.L. 915, No. 125, § 1, effective Jan. 24, 2005.