Chapter
073
2008 -- S 2445 SUBSTITUTE B
Enacted 06/25/08
A N A C T
RELATING TO
CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIP - RHODE ISLAND UNIFORM SECURITIES
ACT
Introduced By: Senators Walaska, and Bates
Date Introduced: February 13, 2008
It is enacted
by the General Assembly as follows:
SECTION
1. Section 7-11-206 of the General Laws in Chapter 7-11 entitled "Rhode
Island
Uniform Securities Act" is hereby amended to read as follows:
7-11-206.
Licensing and notice fees; and filing requirements for federal covered
advisers.
-- (a) A federal covered adviser
or an applicant for licensing shall pay an annual fee as
follows:
(1) Broker dealer two hundred and fifty dollars ($250) and for each branch
office one
hundred
dollars ($100);
(2) Sales representative fifty dollars ($50.00);
(3) Investment adviser two hundred and fifty dollars ($250); and
(4) Investment adviser representative fifty dollars ($50.00).
(5) Federal covered adviser two hundred and fifty dollars ($250).
(b) Except with respect to federal covered advisers whose only clients are
those
described
in section 7-11-204(1)(i), a federal covered adviser shall file any documents
filed with
the U.S.
Securities and Exchange Commission with the director, that the director
requires by rule
or
order, together with any notice fee and consent to service of process that the
director requires
by rule
or order. The notice filings under this subsection expire annually on December
31, unless
renewed.
(c) A notice filing under this section is effective from receipt until the end
of the
calendar
year. A notice filing may be renewed by filing any documents that have been
filed with
the U.S.
Securities and Exchange Commission as required by the director along with a
renewal
fee of
two hundred fifty dollars ($250).
(d) A federal covered adviser may terminate a notice filing upon providing the
director
notice
of the termination, which is effective upon receipt by the director.
(e) Notwithstanding the provisions of this section, until October 11, 1999, the
director
may
require the registration as an investment adviser of any federal covered
adviser who has
failed
to promptly pay the fees required by this section after written notification from
the director
of the
non-payment or underpayment of the fees. A federal covered adviser is
considered to have
promptly
paid the fees if they are remitted to the director within fifteen (15) days
following the
federal
covered adviser's receipt of written notice from the director.
(f) For purposes of this section, "branch office" means an office
of a broker dealer in this
state,
other than the principal office in this state of the broker dealer, from which
three (3) or
more
sales representatives transact business.
For
purposes of this section, "branch office" means any location where
one or more
associated
persons of a broker-dealer regularly conducts the business of effecting any
transactions
in,
or inducing or attempting to induce the purchase or sale of any security, or is
held out as such,
excluding:
(1)
Any location that is established solely for customer service and/or back office
type
functions
where no sales activities are conducted and that is not held out to the public
as a branch
office;
(2)
Any location that is the associated person's primary residents; provided that:
(i)
Only one associated person, or multiple associated persons who reside at that
location
and
are members of the same immediate family, conduct business at the location;
(ii)
The location is not held out to the public as an office and the associated
person does
not
meet with customers at the location;
(iii)
Neither customer funds nor securities are handled at that location;
(iv)
The associated person is assigned to a designated branch office, and such
designated
branch
office is reflected on all business cards, stationery, advertisements and other
communications
to the public by such associated person;
(v)
The associated person's correspondence and communications with the public are
subject
to the firm's supervision in accordance with Rule 3010 of the Financial
Industry
Regulatory
Authority;
(vi)
Electronic communications are made through the broker-dealer's electronic
system;
(vii)
All orders are entered through the designated branch office or an electronic
system
established
by the broker-dealer that is reviewable at the branch office;
(viii)
Written supervisory procedures pertaining to supervision of sales activities
conducted
at the residence are maintained by the broker-dealer; and
(ix)
A list of the residence locations is maintained by the broker-dealer;
(3)
Any location, other than a primary residence, that is used for securities
business for
less
than thirty (30) business days in any one calendar year, provided the
broker-dealer complies
with
the provisions of paragraph (f)(2)(i) through (ix) above;
(4)
Any office of convenience, where associated person occasionally and exclusively
by
appointment
meet with customers, which is not held out to the public as an office.
(5)
Any location that is used primarily to engage in non-securities activities and
from
which
the associated person(s) effects no more than twenty-five (25) securities
transactions in any
one
calendar year; provided that any advertisement or sales literature identifying
such location
also
sets forth the address and telephone number of the location from which the
associated
person(s)
conducting business at the non-branch locations are directly supervised;
(6)
The floor of a registered national securities exchange where a broker-dealer
conducts
a
direct access business with public customers.
(7)
A temporary location established in response to the implementation of a
business
continuity
plan.
(8)
Notwithstanding the exclusions in paragraph (f), any location that is
responsible for
supervising
the activities of persons associated with the broker-dealer at one or more non-branch
locations
of the broker-dealer is considered to be a branch office.
(9)
The term "business day" as used in subsection 7-11-206(f) shall not
include any
partial
business day provided that the associated person spends at least four (4) hours
on such
business
day at his or her designated branch office during the hours that such office is
normally
open
for business.
(10)
Where such office of convenience is located on bank premises, signage necessary
to
comply
with applicable federal and state laws, rules and regulations and applicable
rules and
regulations
of the New York Stock Exchange, other self-regulatory organizations, and
securities
and
banking regulators may be displayed and shall not be deemed "holding
out" for purposes of
subdivision
7-11-206(f)(iv).
(g) If an application is denied or withdrawn or the license is revoked,
suspended, or
withdrawn,
the director is not required to refund the fee paid.
(h) The director may issue a stop order suspending the activities of a federal
covered
adviser
in this state if the director reasonably believes there has been a violation of
the provisions
of this
section.
SECTION
2. This act shall take effect upon passage.
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LC02033/SUB B
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