Section 48-4-008 - SUPERVISORS AND COMPLIANCE PRINCIPALS008.01 A broker-dealer, which is not a member of FINRA, shall designate in writing a compliance principal and conform with this section during all registration periods. 008.01A The compliance principal will be responsible for supervising the compliance of the broker-dealer and its registered agents and other associated persons with the Act and the rules and regulations promulgated thereunder.008.01B If the designated compliance principal ceases to act in that capacity, the broker-dealer must designate in writing a qualified replacement principal within sixty days after such change has occurred.008.01C Failure to designate a compliance principal constitutes grounds for denial or suspension of a broker-dealer registration.008.01D The designated compliance principal for Nebraska shall be registered as an agent of the broker-dealer in Nebraska and have taken and passed a qualifying examination, as set forth below: 008.01D1 The examinations required by FINRA pursuant to FINRA Rule 1220;008.01D2 The Uniform Securities Agent State Law Examination (Series 63) or the Uniform Combined State Law Examination (Series 66); and 008.01D3 One of the following examinations: 008.01D3a The General Securities Principal Examination (Series 24 examination);008.01D3b The Investment Company Products Principal Examination (Series 26 examination), if the broker-dealer's registration is or will be limited to investment company products;008.01D3c The Direct Participation Programs Principal Examination (Series 39 examination) if the broker-dealer's registration is or will be limited to direct participation programs; or008.01D3d The General Securities Representative Examination (Series 7 examination), if the broker-dealer's registration is or will be limited to: 008.01D3d(i) Securities of one issuer or associated issuers (other than mutual funds),008.01D3d(ii) Interests in mortgages or other receivables, or008.01D3d(iii) Securities of nonprofit organizations, provided that the Director may waive the requirement of this section for principals of a broker-dealer whose registration is limited to securities of non-profit organizations if the Director finds the waiver is consistent with investor protection and is in the public interest.008.02 Every registered broker-dealer must designate at least one registered agent located at its principal office, and one registered agent located at each office of supervisory jurisdiction ("OSJ") that is located in this state to act in a supervisory capacity. 008.02A Such supervisor shall have taken and passed the appropriate supervisory examination administered by FINRA.008.02B For any office located in this state not designated as an OSJ, the broker-dealer must designate a supervisor for the office. The designated supervisor need not be located in this state, but must be registered in this state as an agent and have taken and passed the appropriate supervisory examination administered by FINRA.008.02C For purposes of this subsection "office of supervisory jurisdiction" means any office of a broker-dealer at which any one or more of the following functions take place: 008.02C1 Order execution or market making;008.02C2 Structuring of public offerings or private placements;008.02C3 Maintaining custody of customers' funds or securities;008.02C4 Final acceptance (approval) of new accounts on behalf of the member;008.02C5 Review and endorsement of customer orders;008.02C6 Final approval of retail communications for use by persons associated with the broker-dealer, except for an office that solely conducts final approval of research reports; or008.02C7 Responsibility for supervising the activities of persons associated with the broker-dealer located at one or more other offices of the broker-dealer.48 Neb. Admin. Code, ch. 4, § 008
Amended effective 6/5/2017.Amended effective 11/27/2019Amended effective 6/13/2022