Rule 590-4-5-.02 - Examination(1)Broker-dealer. Unless specifically exempt as hereinafter provided, before a broker-dealer applicant will be considered eligible for registration, the broker-dealer examinations in the form and content prescribed or approved by the Commissioner must be passed, to the extent required by this Rule, by every principal as defined by federal law, rule, or regulation of a broker-dealer in order to test the principal's knowledge of the securities business, state and federal securities laws, and the responsibilities of a supervisor in the securities business.(2)Examinations accepted. The Commissioner recognizes the following general examinations administered by FINRA, and an applicant applying to be registered as a broker-dealer shall provide proof to the Commissioner that its principals have passed:(a) The Series 63 Uniform Securities Agent State Law Examination; and(b) One of the following examinations: 1. Series 4 Registered Options Principal Examination;2. Series 12 Branch Managers Examination;3. Series 23 General Securities Principal Qualification Examination Sales Supervisor Module;4. Series 24 General Principal Examination;5. Series 26 Investment Company Products/Variable Contracts Principal Examination;6. Series 27 Financial and Operations Principal Examination;7. Series 39 Direct Participation Programs Principal Examination; or8. Series 53 Municipal Securities Principal Examination.(c) The Commissioner shall establish or approve the standards for a minimum acceptable grade in determining each applicant's qualification for registration under this provision.(d) Upon failure to receive a minimum passing grade, the principal of the broker-dealer applicant may retake the examination on the next date available. A second failure or failure to take or retake the examination within a thirty (30)-day period from the date the broker-dealer application was filed, shall be grounds for denial of the broker-dealer application and an order to that effect may be entered by the Commissioner. The broker-dealer applicant shall be considered ineligible for licensing during a period of three (3) months from the date of denial of the broker-dealer application by the Commissioner, at which time a new broker-dealer application may be filed and its eligibility reexamined. The original filing fee shall not be refunded nor applied to a subsequent application for registration under this provision. However, the broker-dealer application shall not be denied if:1. The broker-dealer applicant is qualified;2. The broker-dealer applicant meets the requirements of subsection (2)(e); and3. The principal of that applicant who fails the examination qualifies for an exemption under subsection (2)(g).(e) The following are the examination requirements for principals of a broker-dealer: 1. In the case of a partnership, a corporation, or another association, including, but not limited to a limited liability company, at least two (2) partners, officers, directors, or persons or members occupying a similar position must satisfy the examination requirement.2. If the broker-dealer maintains no branch offices and employs no more than ten (10) agents who have contact with the public, only one (1) of those persons must satisfy the examination requirement.(f) An application shall be deemed incomplete until there is a showing of compliance with the examination requirements or an exemption from those requirements.(g) The examination requirements may be waived by a proper showing or certification that the principal, prior to the broker-dealer making application with the Commissioner, has: 1. Taken an examination in the form and content approved by the Commissioner within the preceding two (2) years, and passed the examination with the minimum acceptable passing grade for broker-dealer applicants; or2. Taken an examination in the form and content prescribed or approved by the Commissioner, attained an acceptable passing grade, and thereafter, remained continuously in the securities business, duly licensed by another state.(3)Broker-dealer agent. The Commissioner recognizes the following general examinations, and an applicant applying to be registered as an agent shall provide proof to the Commissioner that the applicant has passed within the two-year period immediately preceding the date of the application, except in regards to the Securities Industry Essentials (SIE) Exam which the applicant shall take and pass within the four-year period immediately preceding the date of the application:(a) The Series 63 Uniform Securities Agent State Law Examination administered by FINRA; and(b) One of the following securities examinations or combination of examinations: 1. FINRA Series 1 Registered Representative Examination;2. FINRA Series 2 Non-Member General Securities Examination;3. FINRA Series 6/S6TO Investment Company Products/Variable Contracts Representative Examination and the Securities Industry Essentials (SIE) Exam;4. FINRA Series 7/S7TO General Securities Representative Examination and the Securities Industry Essentials (SIE) Exam;5. FINRA Series 22/S22TO Direct Participation Programs Representative Examination and the Securities Industry Essentials (SIE) Exam;6. FINRA Series 52/S52TO Municipal Securities Representative Examination and the Securities Industry Essentials (SIE) Exam;7. NASAA Real Estate Securities Examination; or8. FINRA Series 79/S79TO Investment Banking Representative Examination and the Securities Industry Essentials (SIE) Exam.(c) The examination requirements may be waived by a proper showing or certification that the agent, prior to the agent making application with the Commissioner, has: 1. Taken an examination in the form and content approved by the Commissioner within the preceding two (2) years, and passed the examination with the minimum acceptable passing grade for agent applicants; or2. Taken an examination in the form and content prescribed or approved by the Commissioner, attained an acceptable passing grade, and thereafter, remained continuously in the securities business, duly licensed by another state.(4) An applicant who wishes to rely upon his or her passing any examination other than those enumerated in Paragraphs (2) or (3) above or who wishes to request a waiver of the examination requirements of this Rule must submit a written request for consideration identifying the examination in question, its content, and the agency administering the examination, or the reason why a waiver should be granted by the Commissioner. The Commissioner may decide whether to accept such examination results or to grant a waiver of the examination requirements.(5) Any person whose most recent registration as a broker-dealer or agent has been terminated for two (2) or more years immediately preceding application to the Commissioner for registration shall be required to pass the Series 63 Uniform Securities Agent State Law Examination administered by FINRA and any other examination required by the Commissioner pursuant to this Rule. The Commissioner may find the applicant qualified by other examinations or significant and comprehensive experience or expertise in the securities business.(6) The Commissioner may cooperate with registered securities associations and national securities exchanges in devising and administering tests, and require that applicants pay such association or reasonable exchange fees or charges to defray the costs incurred by such association or exchange in administering the tests.Ga. Comp. R. & Regs. R. 590-4-5-.02
O.C.G.A. §§ 10-5-30, 10-5-31, 10-5-35, 10-5-41, 10-5-74.
Original Rule entitled "SEC Coordinated Filing Exemption" adopted. F. Jan. 16, 1984; eff. Feb. 5, 1984.Amended: F. Feb. 24, 1987; eff. Mar. 16, 1987.Repealed: New Rule of same title adopted. F. Dec. 21, 2004; eff. Jan. 10, 2005.Repealed: New Rule entitled "Examination" adopted. F. Nov. 18, 2011; eff. Dec. 8, 2011.Amended: F. Apr. 18, 2019; eff. May 8, 2019.