The purpose and effect is to conform the rules to Chapter 2023-205, Laws of Florida, to toll the time period for abandoning an application filed with the Office for registration as a Financial Industry Regulatory Authority ....

 

DEPARTMENT OF FINANCIAL SERVICES

Securities

RULE NOS.:RULE TITLES:

69W-600.001Application for Registration as a Dealer (FINRA)

69W-600.0011Effect of Law Enforcement Records on Applications for Registration as Dealer, Issuer/Dealer, Intermediary, or Investment Adviser

69W-600.0012Application for Registration as a Dealer (Non-FINRA)

69W-600.0013Application for Registration as an Issuer/Dealer

69W-600.0015Canadian Dealer Notice-Filing

69W-600.0016Application for Registration as an Investment Adviser (State Registered)

69W-600.0017Notice-Filing for Federal Covered Advisers

69W-600.0019Registration of Florida Intrastate Crowdfunding Intermediaries

69W-600.002Application for Registration as Associated Person (FINRA Dealer)

69W-600.0022Application for Registration as an Associated Person (Non-FINRA Dealer)

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

69W-600.0024Application for Registration as an Associated Person (Investment Adviser and Federal Covered Advisor)

69W-600.0033Notice Filing of Branch Office (Issuer/Dealer)

69W-600.012Rules of Conduct

69W-600.013Prohibited Business Practices for Dealers and Their Associated Persons

69W-600.0131Prohibited Business Practices for Investment Advisers and Their Associated Persons

69W-600.0132Custody Requirements for Investment Advisers

69W-600.0133Use of Senior - Specific Certifications and Professional Designations by Associated Persons and Investment Advisers

69W-600.014Books and Records Requirements

69W-600.0151Net Capital and Financial Reporting Requirements for Dealers and Issuer/Dealers

69W-600.0161Net Capital and Financial Reporting Requirements for Investment Advisers

PURPOSE AND EFFECT: The purpose and effect is to conform the rules to Chapter 2023-205, Laws of Florida, to toll the time period for abandoning an application filed with the Office for registration as a Financial Industry Regulatory Authority (“FINRA”) member dealer, to clarify how applicants for registration as associated persons of investment advisers or federal covered advisers may satisfy exam requirements, to clarify the requirements for written confirmations of transactions and to remove a redundant section concerning a dealer’s net worth, to include a violation of Regulation Best Interest as a prohibited business practice and incorporate it within the books and records requirements, to define “supervised person” for purposes of custody requirements, to incorporate revised forms, to clarify that Rule 69W-600.0133, Florida Administrative Code, concerns “senior-specific professional designations, to correct typos, to specify how an independent certified public accountant is to provide notice to the Office, and to use consistent terms.

SUMMARY: The rules are amended to conform the Rules to Chapter 2023-205, Laws of Florida, which amended chapter 517, Florida Statutes, to: 1) no longer require the registration of issuers or their associated persons; and 2) to remove “demonstrations of unworthiness” as a grounds for denying an application for registration or for revoking, restricting, or suspending a registration, to toll the time period for abandoning an application filed with the Office for registration as a Financial Industry Regulatory Authority (“FINRA”) member dealer until FINRA has made a determination on its application where the applicant has simultaneously applied for FINRA membership, to clarify how applicants for registration as associated persons of investment advisers or federal covered advisers may satisfy exam requirements, to clarify the requirements for written confirmations of transactions and to remove a redundant section concerning a dealer’s net worth, to include a violation of Regulation Best Interest as a prohibited business practice and incorporate it within the book and record requirements, to define “supervised person” for purposes of custody requirements, to incorporate revised forms, to clarify that Rule 69W-600.0133, Florida Administrative Code, concerns “senior-specific professional designations, to correct typos, to specify how an independent certified public accountant is to provide notice to the Office upon its resignation or dismissal from, or other termination of, the engagement, or upon removing itself or being removed from consideration for being reappointed, and to use consistent terms.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The Agency expressly relies on an analysis of potential economic impact conducted by persons with subject matter knowledge of these rules.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 517.03, 517.12, 517.121, 517.1201, 517.1215, 517.1217, 517.1611, FS.

LAW IMPLEMENTED: 517.081, 517.12, 517.1201, 517.121, 517.1215, 517.1217, 517.161, 517.1611, 517.201, 517.301, FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Ryann White, Office of General Counsel [phone], [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69W-600.001 Application for Registration as a Dealer (FINRA).

(1) New Applications.

(a) No change.

(b) An application shall include the following:

1. Form BD (1-08). A sample form is hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-06078,

2. through 7. No change.

(2)(a) 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.

(b) Additional information shall be submitted directly with the Office within sixty (60) days after a request has been made by the Office. The Office shall grant a request for an additional thirty (30) days to submit the additional information. The Office shall not grant a request after the original sixty (60) day deadline has passed. Failure to provide timely all additional information shall result in the application being deemed abandoned, which shall result in the application being removed from further consideration by the Office and closed.

(c) The time periods specified in paragraph (b) are tolled while an applicant’s FINRA Membership Application is pending with FINRA. The tolling period ends when the applicant’s FINRA membership application has been approved by FINRA or when the Office is notified by FINRA that the applicant is no longer pursuing its registration with FINRA.

(3) through (9) No change.

(10) Notice of Civil, Criminal or Administrative Action. A dealer shall:

(a) through (b) No change.

(c) Such notifications shall be filed with the Office through the CRD of the FINRA in accordance with subsection (3) of this rule. When specifically requested by the Office pursuant to Section 517.021, F.S., one (1) copy of such complaint, answer or reply to any complaint, decision, order, or sanction shall be filed directly with the Office. Responses to requests by the Office for additional information shall be filed directly with the Office.

(11) Changes in Name and Successor Registration Requirements.

Rulemaking Authority 517.03(1), 517.12, 517.121(1) FS. Law Implemented 517.12 FS. History–New 12-5-79, Amended 9-20-82, Formerly 3E-600.01, Amended 7-29-90, 8-1-91, 6-16-92, 1-11-93, 11-14-93, 4-30-96, 6-22-98, 5-10-00, 9-19-00, 7-31-02, Formerly 3E-600.001, Amended 3-16-06, 5-15-07, 11-22-10, 10-29-12, 11-11-13, 12-29-15, 11-26-19, 1-18-21, 2-14-23,              .

 

69W-600.0011 Effect of Law Enforcement Records on Applications for Registration as Dealer, Issuer/Dealer, Intermediary, or Investment Adviser.

(1) General Procedure Regarding Law Enforcement Records. For purposes of this rule, an “applicant” is any Dealer, Issuer/Dealer, Intermediary, or Investment Adviser seeking registration in Florida. Any member, principal, or director of the applicant or any person having similar status or performing similar functions; any person directly or indirectly controlling the applicant; direct owners, principals, or indirect owners that are required to be reported on behalf of the applicant on Form BD or Form ADV pursuant to Section 517.12(14) 517.12(15), F.S. shall be referred to collectively as “relevant persons”. As part of the application review process for each Dealer, Issuer/Dealer, Intermediary, or Investment Adviser, submitted on Form BD, Form FL-INT (10/15), or Form ADV, the Office is required to consider all relevant persons’ respective law enforcement records when deciding whether to approve an application for registration. When conducting this review, the Office reviews the criminal history information derived from the fingerprint check, any responses made by the applicant or a relevant person, and information from other resources such as the Financial Industry Regulatory Authority. In the event of a question regarding a relevant person’s criminal history, the Office may request additional information from the applicant to determine the status of a criminal event, the specific facts and circumstances surrounding a criminal event, or to address other issues determined relevant to the review of the law enforcement record. The Office will notify the applicant of any specific documents that it requires in order to complete its review of a relevant person’s law enforcement record. Documentation that is typically requested includes:

(a) through (e) No change.

(2) through (17) No change.

Rulemaking Authority 517.1611(2) FS. Law Implemented 517.12, 517.161 FS. History–New 9-2-10, Amended 12-5-19, 2-14-23,             .

 

69W-600.0012 Application for Registration as a Dealer (Non-FINRA).

(1) New Applications.

(a) No change.

(b) An application shall include the following:

1. Form BD (1-08), which is hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-06078;

2. through 7. No change.

(2) through (9) No change.

(10) Notice of Civil, Criminal or Administrative Action. A broker dealer shall:

(a) through (b) No change.

(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 517.021, F.S., one (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 directly with the Office through the REAL System.

(11) Changes in Name and Successor Registration Requirements

Rulemaking Authority 517.03(1), 517.12, 517.121(1) FS. Law Implemented 517.12 FS. History–New 12-29-15, Amended 11-26-19, 1-18-21, 2-14-23,                 .

 

69W-600.0013 Application for Registration as an Issuer/Dealer.

Rulemaking Authority 517.03(1), 517.12 FS. Law Implemented 517.12 FS. History–New 12-29-15, Amended 11-26-19, 1-18-21, 2-14-23­, Repealed     .

 

69W-600.0015 Canadian Dealer Notice-Filing.

(1) through (5) No change.

(6) Notice of Civil, Criminal or Administrative Action. A Canadian dealer shall:

(a) through (b) No change.

(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 517.021, F.S., one (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 directly with the Office through the REAL System.

Rulemaking Authority 517.03, 517.12, 517.121(1) FS. Law Implemented 517.12 FS. History–New 5-15-07, Amended 11-22-10, 12-29-15, 1-18-21.

 

69W-600.0016 Application for Registration as an Investment Adviser (State Registered).

(1) New Applications.

(a) No change.

(b) An application shall include the following:

1. Form ADV, Uniform Application for Investment Adviser Registration (08-22) (09-19). A sample form is hereby incorporated by reference and is available at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-12548;

2. through 6. No change.

(2) through (3) No change.

(4) through (5) No change.

(6) Examinations/Qualifications Requirements.

(a) through (b) No change.

(c) Principals who meet one of the following conditions satisfy the examination requirements of paragraph (6)(b) of this rule, except the Office may require additional examinations for any principals found to have violated any state or federal securities law:

1.a. No change.

b. Have not had a lapse in registration as an associated person of an investment adviser or federal covered adviser in any jurisdiction in the United States for a period exceeding two years immediately preceding the date the Office receives the application for registration.

c. No change.

2.a. Principals who were previously registered with the Office as an associated person of an investment adviser or federal covered adviser; and

b. Have not had a lapse in registration as an associated person of an investment adviser or federal covered adviser in any jurisdiction in the United States for a period exceeding two years immediately preceding the date the Office receives the application for registration.

(d) Grandfathering Provision: The examination requirements of paragraph (6)(b) of this rule shall not apply to principals who were registered as an associated person of an investment adviser or a federal covered adviser in any jurisdiction in the United States pursuant to a transition request submitted prior to January 1, 2005, and who have not had a lapse in registration as an associated person of an investment adviser or federal covered adviser in any jurisdiction in the United States for a period exceeding two years immediately preceding the date the Office receives the application for registration. The Office may require additional examinations for any applicant found to have violated any state or federal securities law.

(e) No change.

(7) through (10) No change.

(11) Notice of Civil, Criminal or Administrative Action. An investment adviser shall:

(a) through (b) No change.

(c) Such notifications shall be filed with the Office through the IARD in accordance with subsection (3) of this rule. When specifically requested by the Office pursuant to Section 517.021, F.S., one (1) copy of such complaint, answer or reply to any complaint, decision, order, or sanction shall be filed directly with the Office. Responses to requests by the Office for additional information shall be filed directly with the Office.

(12) No change.

Rulemaking Authority 517.03(1), 517.12, 517.121(1) FS. Law Implemented 517.12 FS. History–New 12-29-15, Amended 11-26-19, 1-18-21, 2-14-23,        .

 

69W-600.0017 Notice-Filing for Federal Covered Advisers.

(1) New Notice-Filings.

(a) No change.

(b) All federal covered advisers making or amending a notice-filing in this state shall file the Form ADV, Part 1, including copies of any amendments filed or required to be filed with the SEC, and the assessment fee required by Section 517.1201(1) or (2), F.S., with the IARD in accordance with subsection (1). Form ADV, Uniform Application for Investment Advisor Registration (08-22) (09-19) is hereby incorporated by reference, and a sample form is available at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-12567.

(2) through (4) No change.

Rulemaking Authority 517.03(1), 517.1201 FS. Law Implemented 517.1201 FS. History–New 12-29-15, Amended 11-26-19, 1-18-21,                        .

 

69W-600.0019 Registration of Florida Intrastate Crowdfunding Intermediaries.

(1) New Applications.

(a) No change.

(b) An application shall include the following:

1. Form FL-INT (10/15) A sample form (which includes its instructions, which define certain terms in Section 517.12(19), F.S.) is hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-06074 http://www.flrules.org/Gateway/reference.asp?No=Ref-06074, or https://flofr.gov/sitePages/documents/FormFL-INT.pdf;

2. through 4. No change.

(2) through (6) No change.

(7) Notice of Civil, Criminal or Administrative Action. An intermediary shall:

(a) through (b) No change.

(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 517.021, F.S., one (1) copy of such complaint, answer or reply to any complaint, decision, order, or sanction shall be filed directly with the Office. Responses to requests by the Office for additional information shall be filed directly with the Office.

Rulemaking Authority 517.03(1), 517.12(19), 517.121(1), 517.1611 FS. Law Implemented 517.12(19), 517.1611 FS. History–New 12-29-15, Amended 1-18-21,         .

 

69W-600.002 Application for Registration as Associated Person (FINRA Dealer).

(1) through (3) No change.

(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.

(5) through (9) No change.

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

(a) through (b) No change.

(c) Such notifications shall be filed with the Office through the CRD of the FINRA in accordance with subsection (3) of this rule. When specifically requested by the Office pursuant to Section 517.021, F.S., one (1) copy of such complaint, answer or reply to any complaint, decision, order, or sanction shall be filed directly with the Office. Responses to requests by the Office for additional information shall be filed directly with the Office.

(11) Continuing Education Requirement. Failure to comply with any of the applicable continuing education requirements set forth in any one of the following shall be deemed a violation a demonstration of unworthiness by an associated person under Section 517.161(1)(a)  517.161(1)(h), F.S.:

(a) through (e) No change.

Rulemaking Authority 517.03(1), 517.12, 517.121(1) FS. Law Implemented 517.12 FS. History–New 9-20-82, Formerly 3E-301.02, Amended 10-15-86, 10-4-88, 6-24-90, 7-29-90, 10-14-90, 8-1-91, 6-16-92, 6-28-93, 11-14-93, 3-13-94, 4-30-96, 12-29-96, 6-22-98, 5-10-00, 9-19-00, 7-31-02, 12-11-03, Formerly 3E-600.002, Amended 3-16-06, 5-15-07, 12-24-07, 12-25-08, 11-22-10, 5-29-12, 11-11-13, 12-29-15, 9-25-18, 11-26-19, 1-18-21, 2-14-23,      .

 

69W-600.0022 Application for Registration as Associated Person (Non-FINRA Dealer).

(1) through (3) No change.

(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.

(5) through (9) No change.

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

(a) through (b) No change.

(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 517.021, F.S., one (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.

Rulemaking Authority 517.03(1), 517.12, 517.121(1) FS. Law Implemented 517.12 FS. History–New 12-29-15, Amended 9-25-18, 11-26-19, 1-18-21, 2-14-23,             .

 

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

Rulemaking Authority 517.03(1), 517.12 FS. Law Implemented 517.12 FS. History–New 12-29-15, Amended 9-25-18, 11-26-19, 1-18-21, 2-14-23, Repealed           .

 

69W-600.0024 Application for Registration as an Associated Person (Investment Adviser and Federal Covered Adviser).

(1) through (3) No change.

(4) Multiple Registration.

(a) 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.

(b) No change.

(5) No change.

(6) Examinations/Qualifications.

(a) through (b) No change.

(c) Applicants who meet one of the following conditions satisfy the examination requirements of paragraph (6)(b) of this rule, except the Office may require additional examinations for any applicants found to have violated any state or federal securities law:

1.a. No change.

b. Have not had a lapse in registration as an associated person of an investment adviser or federal covered adviser in any jurisdiction in the United States for a period exceeding two years immediately preceding the date the Office receives the application for registration.

c. No change.   

2.a. No change.

b. Have not had a lapse in registration as an associated person of an investment adviser or federal covered adviser in any jurisdiction in the United States for a period exceeding two years immediately preceding the date the Office receives the application for registration.

(d) Grandfathering Provision: The examination requirements of paragraph (6)(b) of this rule shall not apply to applicants who were registered as an associated person of an investment adviser or a federal covered adviser in any jurisdiction in the United States pursuant to a transition request submitted prior to January 1, 2005, and who have not had a lapse in registration as an associated person of an investment adviser or federal covered adviser in any jurisdiction in the United States for a period exceeding two years immediately preceding the date the Office receives the application for registration. The Office may require additional examinations for any applicant found to have violated any state or federal securities law.

(e) No change.

(7) through (9) No change.

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

(a) through (b) No change.

(c) Such notifications shall be filed with the Office through the CRD system in accordance with subsection (3) of this rule. When specifically requested by the Office pursuant to Section 517.021, F.S., one (1) copy of such complaint, answer or reply to any complaint, decision, order, or sanction shall be filed directly with the Office. Responses to requests by the Office for additional information shall be filed directly with the Office.

Rulemaking Authority 517.03(1), 517.12, 517.121(1) FS. Law Implemented 517.12 FS. History–New 12-29-15, Amended 9-25-18, 11-26-19, 1-18-21, 2-14-23,           .

 

69W-600.0033 Notice-Filing of Branch Office (Issuer/Dealer).

Rulemaking Authority 517.03(1), 517.1202 FS. Law Implemented 517.12(8), 517.1202 FS. History–New 12-29-15, Amended 11-26-19, Repealed              .

 

69W-600.012 Rules of Conduct.

(1)(a) Confirmation of Transactions: Every dealer registered in this state, including those defined as issuer/dealers under Rule 69W-200.001, F.A.C., shall give or send to the customer a written confirmation at or before completion of each transaction. Such confirmation shall set forth at least the following:

1. (a) A description of the security purchased or sold, the date of the transaction, the price at which the security was purchased or sold and any commission charged;

2. (b) A description of the designation Designation of capacity in which the dealer was acting: as principal for its own account, as agent for the customer, as agent for some other person, or as agent for both the customer and some other person;

3. (c) If Where the dealer acted as agent for the customer, either the name of the contraparty and whether like commissions were charged., or the fact that the information will be furnished upon the request of the customer, if the information is known to, or with reasonable diligence may be ascertained by, the dealer;

(b) (d) Compliance with SEC Rule 10b-10 (17 C.F.R. §240.10b-10), which is incorporated by reference in Rule 69W-200.002, F.A.C., and the confirmation, preparation and disclosure requirements of SEC Rule 17a-3 (17 C.F.R. §240.17a-3) or MSRB Rules G-8 and G-15, which are incorporated by reference in Rule 69W-200.002, F.A.C., shall be deemed compliance with this rule.

(2) No change.

(3) No dealer or investment adviser shall permit or effect a withdrawal of any part of its net worth, including subordinated indebtedness, whether by redemption, retirement, repurchase, repayment or otherwise, that would cause its net capital or its aggregate indebtedness to violate any provisions of Office of Financial Regulation Rules 69W-600.0151 and 69W-600.0161, F.A.C., without prior written approval of the Office of Financial Regulation.

(4) Each dealer and investment adviser shall provide each customer with a confirmed copy of all contracts or agreements between such dealer or investment adviser and such customer within a timely manner.

(4) (5) It shall be a violation of Section 517.301(1), F.S., for any dealer or associated person to engage in any “device, scheme, or artifice to defraud” which shall include selling or effecting the purchase of any security into, in, or from offices in this state in violation of:

(a) through (h) No change.

Rulemaking Authority 517.03(1) FS. Law Implemented 517.121, 517.301(1) FS. History–New 12-5-79, Amended 9-20-82, Formerly 3E-600.12, Amended 12-25-89, 10-14-90, 8-1-91, 6-16-92, 1-11-93, 4-11-94, 1-3-99, 8-19-99, 10-30-03, Formerly 3E-600.012, Amended 11-22-10, 9-22-14, 11-15-16,          .

 

69W-600.013 Prohibited Business Practices for Dealers and Their Associated Persons.

(1) The following are deemed violations demonstrations of unworthiness by a dealer under Section 517.161(1)(a) 517.161(1)(h), F.S., without limiting that term to the practices specified herein:

(a) through (f) No change.

(g) Representing itself as a financial or investment planner, consultant, or adviser advisers, when the representation does not fairly describe the nature of the services offered, the qualifications of the person offering the services, and the method of compensation for the services.

(h) With respect to any customer, transaction or business in this state, violating any of the following:

1. through 5. No change.

6. Section 248.30 of Regulation S-P (17 C.F.R. 248.30 §248-30), which is incorporated by reference in Rule 69W-200.002, F.A.C.

7. Section 240.15l-1 of Regulation Best Interest (17 C.F.R. §240.15l-1), which is incorporated by reference in Rule 69W-200.002, F.A.C. To the extent that any of the rules described in subparagraphs 1. through 6. of this section or their interpretation by the FINRA, NYSE, MSRB, or SEC, as appropriate, conflict or are inconsistent with other provisions of the Florida Securities and Investor Protection Act or rules promulgated pursuant thereto, this paragraph of this rule shall not be deemed controlling.

(i) Failing to furnish to a customer purchasing securities in an offering, not later than the date of confirmation of the transaction, either a final prospectus or a preliminary prospectus and an additional document, which together include all information set forth in the final prospectus, where required.

(j) through (k) No change.

(l) Recommending to a customer that a the customer engage the services of an investment adviser or federal covered adviser where in connection with which the dealer receives a fee or remuneration (other than directed business) from the investment adviser or federal covered adviser, unless advise, runless the dealer is registered with the Office as an investment adviser pursuant to Rule 69W-600.0016, F.A.C. or notice-filed pursuant to Rule 69W-600.0017, F.A.C.

(m) through (p) No change.

(2) The following are deemed violations demonstrations of unworthiness by an associated person of a dealer under section 517.161(1)(a) 517.161(1)(h), F.S., without limiting that term to the practices specified herein:

(a) Borrowing money or securities from or lending money or securities to a customer, except when an associated person is persons are in compliance with FINRA Rule 3240, which is incorporated by reference in Rule 69W-200.002, F.A.C.;

(b) through (f) No change.

(g) Failing to furnish to each offeree of a Small Corporate Offering Registration (SCOR) a copy of the “Florida Guide to Small Business Investments,” OFR-S-13-97, effective XX-2023 11-22-10, which is hereby incorporated by reference and available at  http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-11278; and

(h) No change.

Rulemaking Authority 517.03(1), 517.1217 FS. Law Implemented 517.081, 517.1217, 517.161(1) FS. History–New 12-5-79, Amended 9-20-82, Formerly 3E-600.13, Amended 8-1-91, 6-16-92, 1-11-93, 11-7-93, 5-5-94, 9-9-96, 10-20-97, 1-25-00, 10-30-03, Formerly 3E-600.013, Amended 10-23-06, 1-18-09, 11-22-10, 9-22-14, 11-15-16, 11-26-19, 1-18-21,            .

 

69W-600.0131 Prohibited Business Practices for Investment Advisers and Their Associated Persons.

(1) The following are prohibited business practices for investment advisers and associated persons pursuant to Section 517.1215(2), F.S., and are deemed violations demonstrations of unworthiness by an investment adviser or an associated person of an investment adviser under Section 517.161(1)(a) 517.161(1)(h), F.S., without limiting that term to the practices specified herein:

(a) With respect to any client customer, transaction or business in, to or from this state, engaging in any conduct prohibited by, or failing to comply with the requirements of, the following, notwithstanding the fact that the investment adviser or associated person is not registered or required to be registered under the Investment Advisers Act of 1940:

Sections 204, 204A, 205, 206, 207, 208 of the Investment Advisers Act of 1940, (15 U.S.C.A. §§80b-4, 80b-4a, 80b-5, 80b-6, 80b-7, 80b-8), or SEC Rules 204-1, 204-3, 205-1, 205-2, 205-3, 206(3)-1, 206(3)-2, 206(4)-1, (17 C.F.R. §§275.204-1, 275.204-3, 275.205-1, 275.205-2, 275.205-3, 275.206(3)-1, 275.206(3)-2, 275.206(4)-1), which are incorporated by reference in Rule 69W-200.002, F.A.C.

(b) Borrowing money or securities from a client customer unless the client customer is a dealer, an affiliate of the investment adviser, or a financial institution engaged in the business of loaning funds.

(c) Loaning money or securities to a client customer unless the investment adviser is a financial institution engaged in the business of making loans loaning funds or the client customer is an affiliate of the investment adviser.

(d) Recommending to a client customer the purchase, sale or exchange of any security without reasonable grounds to believe that the recommendation is suitable for the client customer on the basis of information furnished by the client customer after reasonable inquiry concerning the client’s customer’s investment objectives, financial situation and needs, and any other information known by the investment adviser.

(e) Exercising any discretionary power in placing an order for the purchase or sale of securities for a client’s customer’s account without first obtaining written discretionary authority from the client customer, unless the discretionary power relates solely to the time or price for the execution of orders.

(f) Inducing trading in a client’s customer’s account which is excessive in size or frequency in view of the financial resources, investment objectives, and character of the account.

(g) Placing an order to purchase or sell a security on behalf of a client customer without authority to do so.

(h) Placing an order to purchase or sell a security for a client’s customer’s account upon instruction of a third party without first having obtained a written third-party trading authorization from the client customer.

(i) No change.

(j) Charging a client customer an unreasonable advisory fee.

(k) Failing to disclose to clients customers in writing before any advice is rendered any material conflict of interest relating to the adviser or any of its employees which could reasonably be expected to impair the rendering of unbiased and objective advice including:

1. Compensation arrangements connected with advisory services to clients customers which are in addition to compensation from such clients customers for such services; and,

2. Charging a client customer an advisory fee for rendering advice when a commission for executing securities transactions pursuant to such advice will be received by the adviser or its employees.

(l) Guaranteeing a client customer that a specific result will be achieved with the advice to be rendered.

(m) Recommending to a client customer that the client customer engage the services of a dealer that is not registered or exempt from registration under Chapter 517, F.S., unless the client customer is a person described in Section 517.061(7), F.S.

(n) Recommending to a client customer that the client customer engage the services of a dealer in connection with which the investment adviser receives a fee or remuneration from the dealer, except as permitted in subsection 69W-600.0024(4), F.A.C.

(o) Disclosing the identity, affairs, or investments of any client customer unless required to do so by law or consented to in writing by the client customer.

(p) Giving false or otherwise misleading client customer information to any financial institution or regulatory agency.

(q) through (u) No change.

(v) Failing to send a client customer an itemized invoice each time a fee is directly deducted from the client’s customer’s account in accordance with the provisions of paragraph 69W-600.0132(2)(i), F.A.C.

(w) Failing to establish, maintain, and enforce written policies and procedures reasonably designed to achieve compliance, by the investment adviser or its associated persons, with Chapter 517, F.S., and Division 69W, F.A.C.

(x) Charging a client customer an advisory fee greater than the amount authorized in the written investment advisory contract between the client customer and the investment adviser.

(2) No change.

Rulemaking Authority 517.03(1), 517.1215 FS. Law Implemented 517.12(3), 517.1215, 517.161(1) FS. History–New 1-25-00, Amended 10-30-03, Formerly 3E-600.0131, Amended 10-23-06, 1-18-09, 11-22-10, 9-22-14, 5-6-15, 11-15-16, 11-26-19, 1-18-21, 2-14-23,        .

 

69W-600.0132 Custody Requirements for Investment Advisers.

(1) Definitions. For purposes of this rule:

(a) “Custody” means holding directly or indirectly, client funds or securities, or having any authority to obtain possession of them or has the ability to appropriate them. The investment adviser has custody if a related person holds, directly or indirectly, client funds or securities, or has any authority to obtain possession of them, in connection with advisory services the investment adviser provides to clients.

1. Custody includes:

a. through b. No change.

c. Any capacity (such as general partner of a limited partnership, managing member of a limited liability company or a comparable position for another type of pooled investment vehicle, or trustee of a trust) that gives the investment adviser or the investment adviser’s supervised person legal ownership of or access to client funds or securities (including, but not limited to, a general partner of a limited partnership, a managing member of a limited liability company or a comparable position for any type of pooled investment vehicle, or a trustee of a trust).

2. Receipt of checks drawn by clients and made payable to third parties will not meet the definition of custody if forwarded to the third party within 24 hours of receipt and the investment adviser maintains the records required under subsection 69W-600.014(8), F.A.C.,

(b) through (e) No change.

(f) “Supervised person” means an investment adviser’s officers, partners, directors (or other persons occupying a similar status or performing similar functions), or employees, or any other person who provides investment advice on behalf of the investment adviser and is subject to the investment adviser’s supervision or control.

(2) Safekeeping required. If the investment adviser is registered or required to be registered, it is unlawful for the investment adviser to have custody of client funds or securities unless the following requirements in paragraphs (2)(a)-(i) are met:

(a) Notice to Office. The investment adviser notifies the Office of Financial Regulation (Office) within thirty (30) days in writing that the investment adviser has or may have custody. Such notification is required to be given on Form ADV, Uniform Application for Investment Adviser Registration (08-22) (09-19), which is hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-12568.

(b) through

(f) Independent Verification. The client funds and securities of which the investment adviser has custody are verified by actual examination at least once during each calendar year, by an independent certified public accountant, pursuant to a written agreement between the investment adviser and the independent certified public accountant, at a time that is chosen by the independent certified public accountant without prior notice or announcement to the investment adviser and that is irregular from year to year. The written agreement must provide for the first examination to occur within six months of becoming subject to this paragraph, except that, if the investment adviser maintains client funds or securities pursuant to this rule as a qualified custodian, the agreement must provide for the first examination to occur no later than six months after obtaining the internal control report. The written agreement must require the independent certified public accountant to:

1. File a certificate on Form ADV-E  electronically through the Investment Adviser Registration Depository (IARD) of the Financial Industry Regulatory Authority (FINRA) with the Office within 120 days of the time chosen by the independent certified public accountant in paragraph (2)(f) of this rule, stating that it has examined the funds and securities and describing the nature and extent of the examination. Form ADV-E (01-13) is hereby incorporated by reference and a sample form is accessible at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-05357.

2. through 3. No change.

(g) through (h) No change.

(i) Direct Fee Deduction. An investment adviser who has custody as defined in sub-subparagraph (1)(a)1.b. of this rule, as a consequence of its authority to make withdrawals from client accounts to pay its advisory fee must also provide the following safeguards:

1. through 2. No change.

3. The investment adviser must notify the Office in writing that the investment adviser intends to use the safeguards provided above. Such notification is required to be given on Form ADV, Uniform Application for Investment Adviser Registration (08-22) (09-19), which is hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-12568.

(3) Exceptions to certain safekeeping requirements.

(a) No change.

(b) Certain privately offered securities.

1. No change.

2. Notwithstanding subparagraph (3)(b)1. of this rule, the provisions of paragraph (3)(b) of this rule are available with respect to securities held for the account of a limited partnership (or limited liability company, or other type of pooled investment vehicle) only if the limited partnership is audited, the audited financial statements are distributed, as described in paragraph (3)(d) of this rule, and the investment adviser notifies the Office in writing that the investment adviser intends to provide audited financial statements, as described above. Such notification is required to be given on Form ADV, Uniform Application for Investment Adviser Registration (08-22) (09-19), which is hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-12568.

(c) No change.

(d) Limited partnerships subject to annual audit. An investment adviser is not required to comply with paragraphs (2)(c) and (2)(d), and shall be deemed to have complied with paragraph (2)(f) of this rule, with respect to the account of a limited partnership (or limited liability company, or any other type of pooled investment vehicle) if each of the following conditions in subparagraphs 1. through 6. are met:

1. through 3. No change.

4. Upon liquidation, the investment adviser distributes the fund’s final audited financial statements prepared in accordance with generally accepted accounting principles to all limited partners (or members or other beneficial owners) and the Office promptly after the completion of such audit;

5. The written agreement with the independent certified public accountant must require the independent certified public accountant to, upon resignation or dismissal from, or other termination of, the engagement, or upon removing itself or being removed from consideration for being reappointed, notify the Office in writing via U.S. mail to 200 E. Gaines Street, Tallahassee, FL 32399 within four business days accompanied by a statement that includes:

a. through b. No change.

6. The investment adviser must also notify the Office in writing that the investment adviser intends to employ the use of the statement delivery and audit safeguards described above. Such notification is required to be given on Form ADV, Uniform Application for Investment Adviser Registration (08-22) (09-19), which is hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-12568.

7. No change.

(e) Investment Adviser as Trustee. When a trust retains an investment adviser, associated person of an investment adviser or employee, director or owner of an investment adviser as trustee and the investment adviser acts as the investment adviser to that trust, an investment adviser is not required to obtain an independent verification of client funds and securities maintained by a qualified custodian under paragraph (2)(f) of this rule, if the investment adviser instructs the qualified custodian of the trust as follows in subparagraphs 1. through 3.:

1. No change.

2. Distribution of Assets. Except as otherwise set forth in sub-subparagraph a. below, the qualified custodian may transfer funds or securities, or both, of the trust only upon the direction of the trustee. The grantor of the trust or attorneys for the trust, if it is a testamentary trust, the co-trustee (other than the investment adviser, associated person of the investment adviser or employee, director or owner of the investment adviser), or a defined beneficiary of the trust, must designate the authorized signatory for management of the trust. The direction to transfer funds or securities, or both, can only be made to the following:

a. through b. No change.

c. To a third person independent of the investment adviser in payment of the fees or charges of the third person including, but not limited to: attorney’s Attorney’s, accountant’s, or custodian’s fees for the trust; and taxes, interest, maintenance or other expenses, if there is property other than securities or cash owned by the trust;

d. through e. No change.

3. through 4. No change.

(f) through (g) No change.

(4) No change.

Rulemaking Authority 517.03(1), 517.1215 FS. Law Implemented 517.1215 FS. History–New 10-23-06, Amended 11-22-10, 9-22-14, 5-6-15, 11-26-19, 1-18-21,                .

 

69W-600.0133 Use of Senior-Specific Certifications or Senior-Specific and Professional Designations by Associated Persons and Investment Advisers.

(1) The use of a senior-specific certification or senior-specific professional designation by any person in connection with the offer, sale, or purchase of securities, or the provision of advice as to the value of or the advisability of investing in, purchasing, or selling securities, either directly or indirectly or through publications or writings, or by issuing or promulgating analyses or reports relating to securities, that indicates or implies that the user has special certification or training in advising or servicing senior citizens or retirees, in such a way as to mislead any person shall be a prohibited dishonest and unethical business practice in the securities industry in violation of Section 517.161(1)(a) 517.161(1)(d) or 517.161(1)(h), F.S., by an associated person of a dealer or investment adviser. The prohibited use of such certifications or professional designation includes, but is not limited to, the following:

(a) through (d) No change.

(2) through (5) No change.

Rulemaking Authority 517.03(1), 517.1215(2), 517.1217 FS. Law Implemented 517.1215(2), 517.1217, 517.161 FS. History–New 1-18-09, Amended 9-22-14,            .

 

69W-600.014 Books and Records Requirements.

Except as otherwise provided herein, every dealer, investment adviser, branch office, and associated person conducting business in this state shall prepare and maintain on a current basis, and preserve for the periods of time specified, such records, prescribed herein, as are appropriate for said dealer’s, investment adviser’s, branch office’s, or associated person’s course of business, and are sufficient to provide an audit trail of all business transactions by said dealer, investment adviser, associated person, or branch office. Associated persons who conduct business from a branch office notice-filed in this state shall be exempt from the provisions of this rule.

(1) All dealers are required to prepare and maintain appropriate books and records relating to their business as described in SEC Rules 17a-3 or 17a, (17 C.F.R. §§240.17a-3, 240.17a-4), section 248.30 of Regulation S-P (17 C.F.R. §248.30), section 240.15l-1 of Regulation Best Interest (17 C.F.R. §240.15l-1), and MSRB Rules G-7, G-8 and G-9; and records evidencing compliance with Financial Industry Regulatory Authority (FINRA) Rule 1020 and FINRA rules contained in the Rule 2000 Series (Duties and Conflicts), Rule 3000 Series (Supervision and Responsibilities Relating to Associated Persons), Rule 4000 Series (Financial and Operational Rules), and Rule 5000 Series (Securities Offering and Trading Standards and Practices). The foregoing rules are incorporated by reference in Rule 69W-200.002, F.A.C.

(2) All issuer/dealers are required to maintain at least the following records:

(a) Ledgers, journals (or other records) reflecting all assets, liabilities, income and expenses, and capital accounts properly maintained in accordance with United States generally accepted accounting principles;

(b) Copies of all promotional sales materials and correspondence used in connection with the sales of all securities as distributed;

(c) A record of all sales of securities made by, or on behalf of, the issuer as described in and in compliance with SEC Rule 17a-3(a)(1), (17 C.F.R. §240.17a-3(a)(1)), which is incorporated by reference in Rule 69W-200.002, F.A.C.;

(d) Securities certificate and securities holder records reflecting names and addresses of all holders of record, certificates issued to such holders, number of shares or bonds issued, and full details as to transfers or cancellations;

(e) In lieu of the issuer/dealer preparing and maintaining such records as detailed in paragraph (d), above, a qualified transfer agent/registrar may be appointed, provided such information is accessible to the issuer/dealer.

(2) (3) All investment advisers, notwithstanding the fact that the investment adviser is not registered or required to be registered under the Investment Advisers Act of 1940, shall prepare and maintain true, accurate and current records relating to their business as described in SEC Rule 204-2, (17 C.F.R. §275.204-2), which is incorporated by reference in Rule 69W-200.002, F.A.C. Notwithstanding SEC Rule 204-2, (17 C.F.R. §275.204-2), investment adviser records requirements do not include Form CRS. Investment advisers shall have available for the Office of Financial Regulation at least the following records:

(a) through (l) No change.

(3) (4) Notwithstanding other record preservation requirements of this rule, the following records or copies shall be required to be maintained in the business location of the investment adviser from which the customer or client is being provided or has been provided with investment advisory services:

(a) through (b) No change.

(4) (5) No provisions of this rule, unless specifically designated as a required form, shall be deemed to require the preparation, maintenance, or preservation of a dealer’s or investment adviser’s books and records in a particular form or system, provided that whatever form or system utilized by such dealer’s or investment adviser’s course of business is sufficient to provide an audit trail of all business transactions.

(5) (6) Every investment adviser that has its principal place of business in a state other than this state shall be exempt from the requirements of this rule, provided the investment adviser is licensed in such state and is in compliance with that state’s record keeping requirements.

(6) (7) All books and records described in this rule shall be preserved in accordance with the following:

(a) through (e) No change.

(7) (8) Where the investment adviser inadvertently held or obtained a client’s securities or funds and returned them to the client within three business days or has forwarded third party checks within 24 hours, the investment adviser will be considered as not having custody but shall keep a ledger or other listing of all securities or funds held or obtained, including the following information:

(a) through (j) No change.

Rulemaking Authority 517.03(1), 517.121(1), 517.1215 FS. Law Implemented 517.121(1), 517.1215 FS. History–New 12-5-79, Amended 9-20-82, Formerly 3E-600.14, Amended 10-14-90, 8-1-91, 6-16-92, 1-11-93, 9-9-96, 6-22-98, 1-25-00, 10-30-03, Formerly 3E-600.014, Amended 10-23-06, 5-15-07, 11-22-10, 11-11-13, 9-22-14, 5-6-15, 11-15-16, 11-26-19, 1-18-21, 2-14-23,                .

 

69W-600.0151 Net Capital and Financial Reporting Requirements for Dealers and Issuer/Dealers.

(1) through (2) No change.

(3) Net capital requirements for issuer-dealers.

(a) Every issuer/dealer registered or required to be registered pursuant to Section 517.12, F.S., except those described in paragraph (3)(b) of this rule, shall maintain net capital of least $5,000.

(b) An issuer who elects to offer or sell its own securities pursuant to Section 517.051(9), F.S., is required to be registered pursuant to Section 517.12(2), F.S., and shall maintain net capital of:

1. $5,000 when the securities of the issuer which are to be offered and sold are not in excess of $250,000.

2. $25,000 when the securities of the issuer which are to be offered and sold are in excess of $250,000.

(3) (4) Financial reporting requirements for dealers.

(a) Requirement for dealer applicants. Every dealer applicant, unless exempted under paragraph (3)(c) (4)(c) of this rule, shall file with the Office:

1. through 2. No change.

(b) Requirement for dealers. Every dealer registered or required to be registered pursuant to Section 517.12, F.S., shall annually file with the Office of Financial Regulation audited financial statements as of the end of the dealer’s fiscal year within ninety (90) days after the conclusion of said fiscal year, unless exempted under paragraph (3)(c) (4)(c) of this rule. Financial statements required to be filed with the Office under this paragraph shall be filed by electronic means. Registrants who filed their original application through the REAL system shall file the documents required by this paragraph through the REAL system. All other registrants shall file the documents required by this subsection via the Office’s online portal at: https://www.flofr.gov/sitePages/WelcomeToOnlineServices.htm.

(c) The financial statements and reports required by paragraphs (3)(a) (4)(a) and (3)(b) (4)(b) of this rule, are not required to be filed with the Office by a dealer applicant or registrant if the dealer registrant is a current member of a securities association registered pursuant to section 15A of the Securities Exchange Act of 1934 (15 U.S.C. §78o-3) and such association requires financial reports to be filed with it.

(d) Financial statements and reports prepared and filed in accordance with the provisions of SEC Rule 17a-5 (17 C.F.R. §240.17a-5), which is incorporated by reference in Rule 69W-200.002, F.A.C., shall be deemed to be in compliance with and fulfill the requirements of paragraphs (3)(a) (4)(a) through (3)(d) (4)(d) of this rule.

(5) Financial reporting requirements for issuer-dealers.

(a) Requirements for issuer-dealer applicants. Every issuer-dealer applicant shall file with the Office:

1. Financial statements as described in paragraph (5)(b) of this rule, as of a date within ninety (90) days prior to the date of filing for registration;

2. Written notice of designation of an independent certified public accountant, which notice shall include name, address and telephone number of the accountant so designated;

3. Written notice of fiscal year end or audit date of such issuer-dealer; and,

4. Disclosure of any contingent, civil or criminal liabilities of such issuer-dealer.

(b) Issuer-dealer applicants may file unaudited financial statements provided that the issuer-dealer applicants shall also file audited financial statements as of said applicant’s most recent fiscal year end, except:

1. This paragraph (5)(b) does not apply to issuer-dealer applicants who concurrently submit an application for registration of securities pursuant to Section 517.081, F.S. and who are required to file audited financial statements under that section.

2. Issuer-dealer applicants who will offer or sell their own securities pursuant to Section 517.051(9), F.S., shall only file unaudited financial statements.

(c) Requirements for issuer-dealers. An issuer-dealer shall annually file with the Office audited financial statements as of the end of the issuer-dealer’s fiscal year within ninety (90) days after the conclusion of said fiscal year, except issuer-dealer applicants offering or selling its own securities pursuant to Section 517.051(9), F.S., may file unaudited financial statements within ninety (90) days after the conclusion of the end of their fiscal year. Financial statements required to be filed with the Office under this paragraph shall be filed via the REAL system.

(4) (6) Registration as a dealer or issuer-dealer may be denied, revoked, or suspended pursuant to Section 517.161(1), F.S., if financial statements reflect:

1. through 3. No change.

Rulemaking Authority 517.03(1), 517.12(8), 517.121(2) FS. Law Implemented 517.12(8), 517.121(2), 517.161(1), 517.201 FS. History–New 5-6-15, Amended 11-26-19, 3-3-21, 2-14-23,               .

 

69W-600.0161 Net Capital and Financial Reporting Requirements for Investment Advisers.

(1) Net capital requirements for investment advisers. The net capital of an investment adviser applicant or registrant under Section 517.12, F.S., shall be maintained at all times at a level required by this rule.

(a) through (c) No change.

(2) through (3) No change.

Rulemaking Authority 517.03(1), 517.12(8), 517.121(2) FS. Law Implemented 517.12(8), 517.121(2), 517.161(1), 517.201 FS. History–New 5-6-15, Amended 3-3-21, 2-14-23,______.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Alisa G. Goldberg, Director, Division of Securities

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Financial Services Commission

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: December 19, 2023

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: August 11, 2023