69W-600.0023. Application for Registration as an Associated Person (Issuer/Dealer)  


Effective on Tuesday, November 26, 2019
  • 1(1) New Applications.

    4(a) Applicants for initial registration as a principal or associated person of an issuer/dealer 18shall file 20the Uniform Application for Securities Industry Registration or Transfer (Form U4) 31electronically on the 34Office of Financial Regulation38’s website at https://real.flofr.com through the 44Regulatory Enforcement and Licensing 48(REAL) System 50as prescribed by the Financial Services Commission (Commission). The application shall include all information required by such form, any other information the Office of Financial Regulation (Office) may require, and payment of the statutory fees required by Section 88517.12(10), F.S. 90The application 92shall be deemed received on the date the Office issues a confirmation of submission and payment to the applicant via the Office’s website. 115Every application or amendment filed pursuant to this rule shall constitute a “written application” within the meaning of Section 134517.12(6), F.S.

    136(b) An application shall include the following:

    1431. Form U4 (05/2009), which is hereby incorporated by reference and available at 156http://www.flrules.org/Gateway/reference.asp?No=Ref-06089158.

    1592. Statutory fee, for each application, in the amount as required by Section 172517.12(10), F.S.

    1743. Persons requesting a fee waiver as set forth in Section 185517.12(10), F.S., 187shall submit 189Office of Financial Regulation 193Active Military Member/Veteran/Spouse Fee Waiver and Military Service Verification, 202Form OFR-MIL-001, effective 09/2018206. A sample form is hereby incorporated by reference and available at 218http://www.flrules.org/Gateway/reference.asp?No=Ref-09913220. Form OFR-MIL223-001 224shall be submitted within one hundred eighty (180) days after receipt of the application.

    2384. Evidence of examinations/qualifications set forth in subsection (6) of this rule.

    2505. Fingerprints shall be submitted in accordance with Section 259517.12(7), F.S., 261and subsection (7) of this 266rule.

    267(2) Request for Additional Information. All information required by subsection (1) of this rule, shall be submitted with the original application filing. Any request for additional documents or information shall be made by the Office within thirty (30) days after receipt of the application. The Office may require documentation to be certified by its issuer based upon the Office’s review of the nature and substance of the disciplinary history of the applicant. For purposes of this rule, “certified” means that there must be an original certification or attestation by the issuer of the record that the document is a true copy of a record contained in its office and its seal, if any. Additional information shall be submitted directly with the Office within sixty (60) days after a request has been made by the Office. Failure to respond to such request within sixty (60) days after the date of the request may be construed by the Office as grounds for denial of an application in accordance with the provisions of Section 438120.60(1), F.S.

    440(3) Amendment of Application. If the information contained in any Form U4 becomes inaccurate for any reason before or after the associated person becomes registered, the associated person through the dealer shall be responsible for correcting the inaccurate information within thirty (30) days. If the information being updated relates to the applicant’s or registrant’s disciplinary history, in addition to updating the Form U4, the associated person through the dealer shall also provide the Office with notice and copies of each civil, criminal or administrative action initiated against the associated person as provided in subsection (10) of this rule. Associated persons of issuer/dealers 542shall file such amendments electronically with the Office through the REAL System.

    554(4) Multiple Registration An applicant for registration as an associated person may apply to be registered as an associated person of more than one dealer, issuer/dealer, federal covered adviser or investment adviser, or any combination thereof, by the filing of separate applications by each registered dealer, issuer/dealer, federal covered adviser or investment adviser, and payment of separate application fees as required.

    615(5) Alternate Business Name.

    619(a) An issuer required to be registered or who elects to be registered pursuant to Section 635517.12(1), 636517.051(9) 637or 638517.061(11), F.S., 640selling its own securities exclusively through its principals or agents (as those terms are defined in Section 657517.021, F.S., 659and Rule 66169W-200.001, 662F.A.C., respectively) may obtain registration as an issuer/dealer by filing as required under subsection (1) of this rule, Rule 68169W-500.011 682or 69W-600.0013, F.A.C., as appropriate, provided that:

    6891. The associated persons of said issuer/dealer comply with the registration requirements of Section 703517.12, F.S., 705and subsections (6) and (7) of this rule, provided that such person primarily performs, or is intended to perform at the end of the distribution, substantial duties for, or on behalf of, the issuer other than in connection with transactions in securities,

    7472. Said issuer/dealer may register up to five (5) associated persons, which persons shall be exempted from the examination requirements of subsection (6) of this rule, provided such issuer/dealer shall register no more than five (5) associated persons, and at the time of application for registration advises the Office of its intention to register no more than five (5) associated persons. Failure to so advise the Office shall require all associated person applicants to fulfill the examination requirements of subsection (6) of this rule. Registration of more than five (5) such associated persons, at any one time, shall void this exemption, and all such associated persons shall be required to meet the examination requirements of subsection (6) of this rule.

    867(b) It is prohibited for any associated person to conduct securities business in this state under any name other than that of the dealer with which the associated person is registered unless each of the following conditions is met:

    9061. The business conducted does not violate or evade any provision of Chapter 517, F.S.,

    9212. The business conducted does not fall within the definition of “dealer” or “investment adviser” as used in Chapter 517, F.S.; and,

    9433. The dealer with which the associated person is registered has received written notice of the name under which business shall be conducted.

    966(c) Associated persons exempted from the examination requirements as provided by subparagraph (5)(a)2., may not be registered with more than one (1) issuer/dealer at the same time.

    993(6) Examinations/Qualifications.

    995(a) Every applicant for registration shall execute and submit a statement attesting to said applicant’s knowledge and review of the Florida Securities and Investor Protection Act, as contained in the Form U4.

    1027(b) Every applicant for initial registration as a principal or agent of a dealer shall evidence securities general knowledge by:

    10471. Submitting to the Office proof of passing, within two years of the date of application for registration, an examination relating to the position to be filled administered by a national securities exchange registered with the Securities and Exchange Commission (SEC); or

    10892. Submitting to the Office evidence of effective registration, within the preceding two years, with a national securities association or national stock exchange registered with the SEC, relating to the position to be filled as principal or agent; or

    11283. Having remained continuously registered in the capacity to be filled with the State of Florida without interruption of more than two years; or

    11524. Having complied with the provisions of subparagraph (5)(a)2. of this rule; or

    11655. Submitting to the Office proof of passing, within two years of the date of application for registration, an examination relating to the position to be filled administered by a national securities association and proof of passing, within four years of the date of application for registration, the Securities Industry Essentials (SIE) Examination. 1218The following individuals will be considered to have passed the SIE Examination:

    1230a. Individuals whose registration as a representative was terminated between October 1, 2014, and September 30, 2018, provided they re-register as a representative within four years from the date of their last registration;

    1263b. Individuals who registered as representatives prior to October 1, 2018, and who continue to maintain those registrations on or after October 1, 2018.

    1287(c) The examination requirement for associated persons of issuer dealers shall not apply to an individual who currently holds one of the following professional designations:

    13121. Certified Financial Planner (TM) or CFP1319® 1320awarded by the Certified Financial Planner Board of Standards, Inc.;

    13302. Chartered Financial Consultant (ChFC) awarded by the American College, Bryn Mawr, PA;

    13433. Personal Financial Specialist (PFS) awarded by the American Institute of Certified Public Accountants;

    13574. Chartered Financial Analyst (CFA) awarded by the Institute of Chartered Financial Analysts; or

    13715. Chartered Investment Counselor (CIC) awarded by the Investment Counsel Association of America, Inc.

    1385(7) Fingerprint Requirements. Fingerprints filed in accordance with Section 1394517.12(7), F.S., 1396shall be submitted to the Office through a live scan vendor approved by the Florida Department of Law Enforcement (FDLE) and published on FDLE’s website for submission to FDLE and the Federal Bureau of Investigation (FBI) for a state criminal background check and a federal criminal background check. The cost of fingerprint processing shall be borne by the applicant and paid directly to the live scan vendor.

    1463(8) Renewal Requirement.

    1466(a) 1467Renewal fees for associated persons of issuer/dealer firms shall be filed by the firm electronically on the Office’s website at https://real.flofr.com through the REAL System and shall be deemed received on the date the Office issues a confirmation of submission and payment to the applicant via the Office’s website 1516as required by Section 1520517.12(11), F.S1522. All renewal fees must be received by the Office by December 31 of the year the registration expires.

    1541(b) Failure of the firm to submit the requisite amount of fees by December 31 of the year of expiration of the registration shall result in such registration not being renewed. If December 31 falls on a Saturday, Sunday or legal holiday pursuant to Section 1586110.117, F.S., 1588the renewals received on the next business day shall be considered timely received. However, an expired registration may be reinstated in accordance with Section 1612517.12(11), F.S., 1614provided that all requisite information and fees are filed electronically on the Office’s website at https://real.flofr.com through the REAL System on or before January 31 of the year following the year of expiration. Failure to submit the requisite amount of fees necessary to reinstate registration by January 31 of the year following the year of expiration shall result in such registration not being reinstated. If January 31 falls on a Saturday, Sunday, or legal holiday pursuant to Section 1692110.117, F.S., 1694the reinstatement received on the next business day shall be considered timely received. If the renewal or reinstatement is withdrawn or not granted, any fees filed to renew or reinstate registration shall become the revenue of the state pursuant to Section 1735517.12(10), F.S., 1737and shall not be returnable.

    1742(c) Persons requesting a fee waiver as set forth in Section 1753517.12(11) F.S., 1755shall submit 1757Office of Financial Regulation 1761Active Military Member/Veteran/Spouse Fee Waiver and Military Service Verification, 1770Form OFR-MIL-001, effective 09/20181774. A sample form is hereby incorporated by reference and available at 1786http://www.flrules.org/Gateway/reference.asp?No=Ref-099131788. Form OFR-MIL1791-001 1792shall be submitted within one hundred eighty (180) days after receipt of the renewal fees.

    1807(9) Termination of Registration of Principal or Agent.

    1815(a) Where a registrant withdraws, cancels, or otherwise terminates registration, or is terminated for any reason, notice of such fact shall be filed with the Office within thirty (30) calendar days of the date of termination by electronically filing a Uniform Termination Notice for Securities Industry Registration (Form U5) (05/2009) with the Office through the CRD. A sample form is hereby incorporated by reference and is available at 1883http://www.flrules.org/Gateway/reference.asp?No=Ref-060901885.

    1886(b) The Office may deny any request to terminate or withdraw any application or registration as provided under Section 1905517.161(5), F.S.

    1907(10) Notice of Civil, Criminal or Administrative Action. An associated person shall:

    1919(a) Notify the Office within thirty (30) calendar days of the date a complaint is served, of any civil, criminal or administrative charges filed that directly or indirectly relate to the registration or sale of securities, or which directly or indirectly relate to activities as a principal or agent, or any other activity where a breach of a fiduciary trust is alleged. This shall not include minor traffic violations; but shall include any notification of investigation by any recognized regulatory agency.

    2000(b) Notify the Office within thirty (30) calendar days of the date of decision, order, or sanction rendered, or any appeal filed with respect to such decision with regard to any complaint outlined in paragraph (10)(a).

    2036(c) Such notifications shall be filed with the Office through the REAL System in accordance with subsection (3) of this rule. When specifically requested by the Office pursuant to Section 2066517.021, F.S., 2068one (1) copy of such complaint, answer or reply to any complaint, decision, order, or sanction shall be filed with the Office through the REAL System. Responses to requests by the Office for additional information shall be filed with the Office through the REAL System.

    2113Rulemaking Authority 2115517.03(1), 2116517.12 FS. 2118Law Implemented 2120517.12 FS. 2122History–New 12-29-15, Amended 9-25-18, 11-26-19.