02.02.05.02

.02 Indirect Consideration.

A. The antifraud provisions of the Maryland Securities Act, Corporations and Associations Article, §11-302(a), Annotated Code of Maryland, apply to a person who receives consideration indirectly from another person for:

(1) Advising the person as to the value of securities or their purchase or sale; or

(2) Acting as an investment adviser or investment adviser representative.

B. For purposes of this regulation and the Maryland Securities Act, Corporations and Associations Article, §11-302(a), Annotated Code of Maryland, a person receiving indirect consideration may include a person, including officers, directors, and investment adviser representatives of an investment adviser, who receives compensation from an individual or entity that renders investment advice to a client even though the person does not receive compensation directly from the client.