The purpose and effect of these proposed amendments is to update cross-references and re-organize provisions relating to financial reporting and net capital requirements for issuer-dealers under s. 517.051(9), F.S. References to "dealer" are ...

 

DEPARTMENT OF FINANCIAL SERVICES

Securities

RULE NO.:RULE TITLE:

69W-400.002Registration of Issuer Under Section 517.051(9), F.S., as Dealer

PURPOSE AND EFFECT: The purpose and effect of these proposed amendments is to update cross-references and re-organize provisions relating to financial reporting and net capital requirements for issuer-dealers under s. 517.051(9), F.S. References to "dealer" are changed to "issuer/dealer" for consistency with other rules.

SUMMARY: This rule is proposed to be amended to update cross-references to proposed new Rule 69W-600.0151, a consolidated financial reporting and net capital rule for dealers and issuer-dealers. The net capital requirement provisions of existing Rule 69W-400.002 are proposed to be stricken and moved to the new Rule 69W-600.0151, and references to “dealer” are changed to “issuer/dealer.”

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 this rule.

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 FS.

LAW IMPLEMENTED: 517.051(9), 517.12(2) 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: John Kim, [e-mail], [phone]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69W-400.002 Registration of Issuer Under Section 517.051(9), F.S., as Issuer/Dealer Dealer.

(1) An issuer of securities who elects to offer or sell its own securities pursuant to Section 517.051(9), F.S., is required to be registered as an issuer/dealer a dealer pursuant to Section 517.12(2), F.S. The issuer shall comply with the rules of the Financial Services Commisssion for registration as an issuer/dealer dealer as set forth under Rule 69W-600.001 and subsection 69W-600.004(1), F.A.C., in addition to the following requirements:

(1)(a) The financial statements required for registration as an issuer/dealer a dealer should be prepared in accordance with the provisions of subsection 69W-600.0151(5)(b)2. paragraphs 69W-300.002(2)(d) and (5)(c), F.A.C.

(2)(b) The applicant for registration as an issuer/dealer a dealer or principal shall comply with the examination requirements of Rule 69W-600.005, F.A.C.

(3)(c) The issuer/dealer shall comply with the net capital requirements of subsection 69W-600.0151(3)(b), F.A.C. The applicant for registration as a dealer shall be deemed to have satisfied the financial responsibility and net capital requirements of Section 517.12, F.S., if the issuer has and will maintain a 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.

(2) For purposes of this rule, the term “net capital” shall mean total assets minus total liabilities. Assets shall be valued at cost.

Specific Authority 517.03 FS. Law Implemented 517.051(9), 517.12(2) FS. History–New 12-5-79, Amended 9-20-82,                  . Formerly 3E-400.02, 3E-400.002.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Pamela Epting, Director, Division of Securities

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

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: January 13, 2015

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: November 24, 2014