1.1.................... moves to amend H.F. No. 791 as follows:
1.2Page 2, after line 23, insert:
1.3    "Subd. 3. Broker-dealer. "Broker-dealer" means a person engaged in the business
1.4of effecting transactions in securities for the account of others or for the person's own
1.5account. The term does not include:
1.6(1) an agent;
1.7(2) an issuer;
1.8(3) a depository institution; provided such activities are conducted in accordance
1.9with such rules as may be adopted by the administrator;
1.10(4) an international banking institution; or
1.11(5) a person excluded by rule adopted or order issued under this chapter."
1.12Page 2, after line 35 insert:
1.13    "Subd. 9. Registered principal. "Registered principal" means persons associated
1.14with a FINRA member broker-dealer, who are actively engaged in the management of
1.15the FINRA member broker-dealer investment banking or securities business, including
1.16supervision, solicitation, conduct of business, or the training of persons associated with a
1.17FINRA member broker-dealer for any of these functions."
1.18Page 7, delete lines 10 to 30 and insert:
1.19    "Subd. 8. FINRA compliance (a) Sales of annuities made by broker-dealers satisfy
1.20the requirements under Section 72A.203 to 72A.2036, so long as:
1.21(1) those sales comply with FINRA requirements pertaining to suitability and
1.22supervision of annuity transactions; and
1.23(2) a registered principal reviews and approves the transaction based on review
1.24criteria that include consideration of the customer's age, income, liquidity needs, and
1.25financial situation.
2.1(b) The insurer remains responsible for the suitability of every transaction and must
2.2take reasonably appropriate corrective action for any consumer harmed by violation of
2.3law and is subject to the penalty provisions described in section 72A.2034, subdivision 1.
2.4(c) For paragraph (a) to apply, an insurer shall:
2.5(1) monitor the FINRA member broker-dealer using information collected in the
2.6normal course of the insurer's business; and
2.7(2) provide to the FINRA member broker-dealer information and reports that
2.8are reasonably appropriate to assist the FINRA member broker-dealer to maintain its
2.9supervision system.
2.10(3) In addition, nothing in this subdivision limits the responsibilities of the insurer to
2.11monitor the broker-dealer as provided in this subdivision.
2.12(d) Nothing in this subdivision limits the commissioner of commerce's ability to
2.13enforce the provisions of sections 72A.203 to 72A.2036 with respect to sales made in
2.14compliance with FINRA requirements and federal law."
2.15Renumber the subdivisions in sequence