The Office proposes to amend rules 69W-600.0131, .0132, and .014; repeal rules 69W-600.015 and .016, and create new rules 69W-600.0151 and .0161. Rule 600.0131 is proposed to be amended to require Florida state registered investment advisers to ...

 

DEPARTMENT OF FINANCIAL SERVICES

Securities

RULE NOS.:RULE TITLES:

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

69W-600.0132Custody Requirements for Investment Advisers

69W-600.014Books and Records Requirements

69W-600.015Financial Reporting Requirements – Statement of Financial Condition – Dealers and Investment Advisers
69W-600.0151Net Capital and Financial Reporting Requirements for Dealers and Issuer/Dealers

69W-600.016Net Capital Requirements for Dealers and Investment Advisers

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

PURPOSE AND EFFECT: The Office proposes to amend Rules 69W-600.0131, .0132, and .014, F.A.C.; repeal Rules 69W-600.015 and .016, F.A.C., and create new Rules 69W-600.0151 and .0161. Rule 600.0131, F.A.C., is proposed to be amended to require Florida state registered investment advisers to comply with SEC Rules 204-1 and 206(4)-7, which currently require federal covered advisers to, among other things, annually file amendments to their registration form (Form ADV) and adopt and implement compliance procedures and practices, respectively. The Office proposes to amend Rule 600.0132, F.A.C., relating to custody requirements for investment advisers to conform the current rule more closely with the NASAA model rule, including adding a requirement for investment advisers with custody who do not meet certain exceptions to have an annual independent verification of client funds and securities. Rule 69W-600.014, F.A.C., is proposed for amendment to add certain recordkeeping requirements for investment advisers who inadvertently hold or obtain client securities or funds, in accordance with NASAA model rules. Finally, the Office proposes to repeal current financial reporting Rules 69W-300.002 and 69W-600.015, F.A.C., and net capital Rule 69W-600.016, F.A.C., to be replaced by proposed new consolidated net capital/financial reporting rules in Rules 69W-600.0151 and 69W-600.0161, F.A.C., for dealers/issuer-dealers and investment advisers, respectively. The purpose and effect of these changes are to remove outdated requirements, implement clearer requirements as to financial reporting and calculation of net capital, and improve rule organization by consolidating rules on the same subject while creating separate rules by registration type.

SUBJECT AREA TO BE ADDRESSED: Securities Regulation.

RULEMAKING AUTHORITY: 517.03(1), 517.12(9), 517.121, 517.1215 FS.

LAW IMPLEMENTED: 517.12, 517.121, 517.1215, 517.161(1) FS.

IF REQUESTED IN WRITING AND NOT DEEMED UNNECESSARY BY THE AGENCY HEAD, A RULE DEVELOPMENT WORKSHOP WILL BE NOTICED IN THE NEXT AVAILABLE FLORIDA ADMINISTRATIVE REGISTER.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE DEVELOPMENT AND A COPY OF THE PRELIMINARY DRAFT, IF AVAILABLE, IS: John Kim, [phone], [e-mail]; Meredith Stanfield, [phone], [e-mail]

THE PRELIMINARY TEXT OF THE PROPOSED RULE DEVELOPMENT IS NOT AVAILABLE.