The proposed rule amendment updates the Office of Financial Regulation's (Office) disciplinary guidelines for Chapter 517, F.S., to specify sanctions for certain branch offices conducting securities transactions who fail to notice file with the ...

 

DEPARTMENT OF FINANCIAL SERVICES

Securities

RULE NO.:RULE TITLE:

69W-1000.001Disciplinary Guidelines

PURPOSE AND EFFECT: The proposed rule amendment updates the Office of Financial Regulation's (Office) disciplinary guidelines for Chapter 517, F.S., to specify sanctions for certain branch offices conducting securities transactions who fail to notice file with the Office as required under Section 517.1202, F.S., created under Chapter 2013-202, Laws of Florida. The sanctions for a first or subsequent occurrence provide for a fine up to $10,000, summary suspension of the branch office, and/or revocation. The rule is also amended to incorporate the disciplinary guidelines by reference in accordance with Section 120.54(1)(i), F.S. A copy of the proposed incorporated disciplinary guidelines can be accessed at http://www.flofr.com/StaticPages/documents/69W-1000.001.pdf.

SUMMARY: The proposed rule amendment updates the Office of Financial Regulation's (Office) disciplinary guidelines for Chapter 517, F.S., to specify sanctions for certain branch offices conducting securities transactions who fail to notice file with the Office as required under Section 517.1202, F.S., created under Chapter 2013-202, Laws of Florida. The sanctions for a first or subsequent occurrence provide for a fine up to $10,000, summary suspension of the branch office, and/or revocation. The rule is also amended to incorporate the disciplinary guidelines by reference in accordance with Section 120.54(1)(i), F.S. A copy of the proposed incorporated disciplinary guidelines can be accessed at http://www.flofr.com/StaticPages/documents/69W-1000.001.pdf.

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: 517.1611(1) FS.

LAW IMPLEMENTED: 517.1611(1), 517.191(4), 517.221(3) 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, [phone], [e-mail]. A copy of the proposed incorporated disciplinary guidelines can be accessed at http://www.flofr.com/StaticPages/documents/69W-1000.001.pdf.

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69W-1000.001 Disciplinary Guidelines.

(1) Pursuant to Section 517.1611, F.S., disciplinary guidelines applicable to each ground for which disciplinary action may be imposed by the Office against an individual or a firm under Chapter 517, F.S., are hereby adopted. The disciplinary guidelines are contained in “Office of Financial Regulation, Division of Securities, Disciplinary Guidelines for Dealers, Investment Advisers and Associated Persons”, which is hereby incorporated by reference. A copy of the disciplinary guidelines may be obtained by mail from the Florida Office of Financial Regulation, Division of Securities, 200 E. Gaines Street, Tallahassee, Florida 32399, or may be obtained electronically through the following website: http://www.flrules.org/_____________ http://www.flofr.com/Securities/index.htm.

(2) through (9) No change.

Rulemaking Authority 517.1611(1) FS. Law Implemented 517.1611(1), 517.191(4), 517.221(3) FS. History–New 11-22-10, Amended________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Alisa Goldberg, Bureau Chief of Registrations, Division of Securities

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Financial Services Commission
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: August 6, 2013

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: July 16, 2013