Rule 69W-600.001, F.A.C., is recommended for amendment to strike subparagraph (1)(b)6., as this provision is redundant of existing books and records requirements, and to add a requirement for control persons and/or owners to provide fingerprint ...

DEPARTMENT OF FINANCIAL SERVICES
Securities

RULE NO.: RULE TITLE:
69W-600.001: Application for Registration as a Dealer, Issuer/Dealer, or Investment Adviser
69W-600.004: Registration of Issuer/Dealers, Principals and Branch Offices
69W-600.008: Termination of Registration as Dealer, Investment Adviser, Branch Office, Principal or Agent
PURPOSE AND EFFECT: Rule 69W-600.001, F.A.C., is recommended for amendment to strike subparagraph (1)(b)6., as this provision is redundant of existing books and records requirements, and to add a requirement for control persons and/or owners to provide fingerprint cards in support of the application, pursuant to Section 517.12(7), F.S. Rule 69W-600.004, F.A.C., is recommended for amendment to strike subparagraph (3)(b)4., relating to evidence of current registration with the Secretary of State, as there is no specific statutory authority for this requirement. Rule 69W-600.008, F.A.C., is recommended to be amended to change the number of days for notice in subparagraph (1) from 20 to 30 for consistency with other amendment provisions, and to correct a cross-reference typographical error in subparagraph (1) from 59W to 69W.
SUMMARY: Rule 69W-600.001, F.A.C., is recommended for amendment to strike subparagraph (1)(b)6., which requires proof of clearing agreements when requested by the Office, and to add a requirement for control persons and/or owners to provide fingerprint cards in support of the application, pursuant to Section 517.12(7), F.S. Rule 69W-600.004, F.A.C., is recommended for amendment to strike subparagraph (3)(b)4., relating to evidence of current registration with the Secretary of State, as there is no specific statutory authority for this requirement. Rule 69W-600.008, F.A.C., is recommended to be amended to change the number of days for notice in subsection (1) from 20 to 30 for consistency with other amendment provisions, and to correct a cross-reference typographical error in subparagraph (1) from 59W to 69W.
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: 1) No requirement for a SERC was triggered under Section 120.541(1); and 2) The amendments will not exceed any one of the economic analysis criteria in a SERC, as set forth in Section 120.541(2)(a), F.S.
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(1), 517.12(6) FS.
LAW IMPLEMENTED: 517.12, 517.1205, 517.161(5) FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAW.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: John Kim, Assistant General Counsel, [phone], [e-mail]

THE FULL TEXT OF THE PROPOSED RULE IS:

69W-600.001 Application for Registration as a Dealer, Issuer/Dealer, or Investment Adviser.

(1)(a) No change.

(b) A complete application must include the following exhibits or forms that are appropriate for the type of registration requested:

1. through 5. No change.

6. Any direct or indirect owner or control person required to be reported on Form BD, Uniform Application for Broker-Dealer Registration, or Form ADV, Uniform Application for Investment Adviser Registration, pursuant to Section 517.12(7), F.S., who is not currently registered in Florida with the firm they are seeking to join or act as a direct or indirect owner or control person shall submit to the Office fingerprint cards in accordance with subsection 69W-600.006(3), F.A.C. A fully disclosed dealer shall furnish proof of clearing agreements when requested by the Office of Financial Regulation;

7. through 9. No change.

(2) through (3) No change.

Rulemaking Authority 517.03(1), 517.12(6) FS. Law Implemented 517.12(6), (7), 517.1205 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,_________.

 

69W-600.004 Registration of Issuer/Dealers, Principals and Branch Offices.

(1) through (2) No change.

(3)(a) No change.

(b) A complete application must include the following exhibits or forms that are appropriate for the type of registration requested:

1. Form BR, which is incorporated by reference under subsection 69W-301.002(7), F.A.C.

2. Statutory fee in the amount required by Section 517.12(10), F.S.

3. Manager and resident agent as appropriate in this rule must be registered as set forth in Rule 69W-600.002, F.A.C.

4. Evidence of current registration or exemption from the registration requirements of the Florida Secretary of State.

(c) through (d) No change.

Rulemaking Authority 517.03(1), 517.12(6) FS. Law Implemented 517.12(5), (6), (10) FS. History–New 12-5-79, Amended 9-20-82, Formerly 3E-600.04, Amended 10-14-90, 6-16-92, 1-11-93, 11-7-93, 11-14-93, 12-29-96, 10-20-97, 6-10-99, 8-19-99, 5-27-01, 7-31-02, Formerly 3E-600.004, Amended 3-16-06, 5-15-07, 11-22-10,________.

 

69W-600.008 Termination of Registration as Dealer, Investment Adviser, Branch Office, Principal or Agent.

(1) 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 of Financial Regulation on the forms prescribed by the Financial Services Commission, in accordance with subsection 69W-301.002(7) 59W-301.002(7), F.A.C., within thirty (30) twenty (20) calendar days of the date of termination. Such forms shall be filed electronically in accordance with Rules 69W-301.002, 69W-600.0091, 69W-600.0092 and 69W-600.0093, F.A.C.

(2) through (6) No change.

Rulemaking Authority 517.03(1) FS. Law Implemented 517.12(12)(b), 517.161(5) FS. History–New 12-5-79, Amended 9-20-82, Formerly 3E-600.08, Amended 7-29-90, 8-1-91, 6-16-92, 1-11-93, 6-22-98, 6-10-99, 5-10-00, 5-27-01, Formerly 3E-600.008, Amended 3-16-06, 11-22-10,_________.

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: June 26, 2012
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: May 25, 2012