Ala. Admin. Code r. 830-X-3-.08

Current through Register Vol. 43, No. 1, October 31, 2024

Section 830-X-3-.08 - Written Examinations

(1) Each officer, director, partner or any person occupying a similar status or performing similar functions of a dealer applicant, or an agent applicant, who intends to engage in securities transactions must satisfy both the following exam requirements:

(a) An examination on state securities law which will be satisfied by passing the Uniform Securities Agent State Law Examination (USASLE) administered by the National Association of Securities Dealers (NASD) or the Uniform Combined State Law Examination (UCSLE or Series 66); and

(b) An examination on general or limited securities principles which will be satisfied by the applicant showing evidence of passing the appropriate examination(s) required by NASD for the activity in which the applicant will be engaged.

(2) Registration as a dealer or agent is effective only for the activity associated with the Qualification Examination which the applicant passed in satisfaction of Section (1)(b) of this Rule.

(3) The examination required under Section (1)(a) of this Rule shall not be applicable to renewal applications of persons registered prior to January 1, 1984, it being the intent of the Commission to apply this additional examination requirement prospectively. All persons currently registered should be already in compliance with the examination requirements of Section (1)(b) and should strictly observe the restriction upon registration set out in Section (2) of this Rule.

(4) Any person, including each officer, director, partner or any other person occupying a similar status or performing similar functions, applying to be registered as an investment advisor or investment advisor representative under the Alabama Securities Act shall provide the Commission staff with proof that he or she has obtained a passing score on the following examinations:

(a) The Uniform Investment Advisor Law Examination (Series 65 examination); or

(b) The General Securities Representative Examination (Series 7 examination) and the Uniform Combined State Law Examination (Series 66 examination).

(5) Grandfathering:

(a) Any individual who is registered as an investment advisor or investment adviser representative in any jurisdiction in the United States on the effective date of this rule shall not be required to satisfy the examination requirements for continued registration, except that the Commission may require additional examinations for any individual found to have violated the Uniform Securities Act.

(b) An individual who has not be registered in any jurisdiction for a period of two (2) years shall be required to comply with the examination requirements of this Rule.

(6) Waivers. The examination requirement shall not apply to any individual who currently holds one of the following designations and is in good standing with the organization issuing such designations:

(a) Certified Financial Planner (CFP) issued by the Certified Financial Planner Board of Standards, Inc.;

(b) Chartered Financial Consultant (ChFC) awarded by The American College, Bryn Mawr, Pennsylvania;

(c) Personal Financial Specialist (PFS) administered by the American Institute of Certified Public Accountants;

(d) Chartered Financial Analyst (CFA) granted by the Association for Investment Management and Research;

(e) Chartered Investment Counselor (CIC) granted by the Investment Counsel Association of America; or

(f) Such other professional designation as the Director of the Alabama Securities Commission may by order recognize.

Author: Alabama Securities Commission

Ala. Admin. Code r. 830-X-3-.08

Filed September 30, 1982. Readopted: Filed November 9, 1983. Emergency rule filed December 22, 1983. Amended: Filed March 15, 1984; September 28, 1990.

Formerly Rule No. 830-X-3-.05. Amended: Filed September 11, 1991. Amended: January 25, 1996; effective February 29, 1996. Amended: Filed November 17, 1999; effective December 22, 1999. Amended: Filed March 20, 2000; effective April 24, 2000.

Statutory Authority:Code of Ala. 1975, § 8-6-23.