N.J. Admin. Code § 13:47A-4.3

Current through Register Vol. 56, No. 21, November 4, 2024

Section 13:47A-4.3 - Examination requirements for investment adviser representatives

(a) An individual applying to be registered as an investment adviser or investment adviser representative shall provide the Bureau Chief with proof of having obtained a passing score on one of the following examinations, and which has not expired after two years of non-affiliation in a registered capacity, or of holding one of the following certifications:

1. The Uniform Investment Adviser Law Examination (Series 65 examination);

2. The Securities Industry Essentials Exam (SIE), the General Securities Representative Examination (Series 7 examination), and the Uniform Combined State Law Examination (Series 66 examination);

3. The Certified Financial Planner (CFP) certification awarded by the Certified Financial Planner Board of Standards, Inc.;

4. The Chartered Financial Consultant (ChFC) certification awarded by the American College of Financial Services, Bryn Mawr, Pennsylvania;

5. The Personal Financial Specialist (PFS) certification awarded by the American Institute of Certified Public Accountants;

6. The Chartered Financial Analyst (CFA) certification awarded by the Institute of Chartered Financial Analysts; or

7. The Chartered Investment Counselor (CIC) certification awarded by the Investment Adviser Association.

(b) Except as provided at (c) below, any person whose registration has been terminated for a period of two or more years preceding the date of receipt by the Bureau of a new application for registration shall hold one of the certifications set forth at (a) above or pass the required examinations, unless granted a waiver by the Bureau Chief pursuant to N.J.A.C. 13:47A-4.5(c).

(c) Any person whose registration has been terminated for a period of two or more years may maintain the person's examination qualification for registration for a period of five years following termination provided that the person:

1. Previously took and passed the examination(s) set forth at (a)1 or 2 above for which the individual seeks to maintain eligibility pursuant to this section;

2. Was registered as an investment adviser representative for at least one year immediately preceding the termination of the investment adviser representative registration;

3. Was not subject to a statutory disqualification as defined in Section 3(a)(39) of the Securities Exchange Act of 1934 while registered as an investment adviser representative or at any point after termination of the registration;

4. Is not subject to an order of the SEC, FINRA, any other self-regulatory organization, or any other securities regulator requiring the individual to retake the qualifying examination;

5. Does not have a deficiency pursuant to the investment adviser representative continuing education program at the time the investment adviser representative registration becomes ineffective;

6. Elects to participate in NASAA's Exam Validity Extension Program (IAR EVEP) within two years from the effective date of the termination of the investment adviser representative registration; and

7. Completes the continuing education requirements at N.J.A.C. 13:47A-4.4(b) annually on or before December 31 of each calendar year in which the person participates in the IAR EVEP.

i. An individual who elects to participate in the IAR EVEP is required to complete the required continuing education credits for each calendar year that elapses after the individual's investment adviser representative registration became ineffective, regardless of when the individual elects to participate in the IAR EVEP.

ii. An individual who complies with FINRA's Continuing Education Program for Persons Maintaining Their Qualification Following the Termination of a Registration Category (FINRA Rule 1240(c)) shall be considered in compliance with N.J.A.C. 13:47A-4.4(b)2.

(d) Persons applying for registration as an agent who wish to act as an investment adviser representative, shall pass the Securities Industry Essentials Exam (SIE), the Series 7 and the Series 66 examinations, or their successor examinations, and persons applying for registration as investment adviser representatives, without otherwise registering as an agent, shall pass the Series 65 examination, or its successor examinations. Registered agents who have passed the Series 66 examination can give investment advice as part of their agent activities without registering separately as investment adviser representatives.

(e) For grandfathering purposes, the Bureau may consider other examinations as equivalent to the examinations required by this section.

(f) Any registrant, who relied upon one of the certifications described in (a) above in lieu of a qualifying examination, shall notify the Bureau of any termination of the certification within 10 days of such termination. To maintain the registration with the Bureau, the registrant must pass a qualifying examination, obtain a current qualifying certification, or be granted a waiver by the Bureau Chief within six months of the date the certification terminates. Should the registrant fail to requalify within this six-month period, the registrant must withdraw the registration or the Bureau may take action to revoke the registration. If, at the time the certification terminates, the registrant holds another qualifying certification or passed a qualifying examination, the registrant has 30 days to notify the Bureau of such termination.

N.J. Admin. Code § 13:47A-4.3

Amended and recodified from 13:47A-4.4 by 47 N.J.R. 2155(a), effective 8/17/2015

Amended by 56 N.J.R. 1876(a), effective 9/16/2024