230 R.I. Code R. 230-RICR-50-05-1.13

Current through November 7, 2024

Section 230-RICR-50-05-1.13 - Examinations

A. Examination Requirements

1. Any person applying to be registered as an investment adviser or investment adviser representative under the Act shall provide the Department with proof of obtaining a passing score on one of the following examinations:

a. The Uniform Investment Adviser 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). For applicants applying on or after October 1, 2018, the Securities Industry Essentials ("SIE") Exam will also be required.

2. Grandfathering

a. Any individual who is registered as an investment adviser or investment adviser representative in any jurisdiction in the United States as of December 3, 1999, shall not be required to satisfy the examination requirements for continued registration, except that the Director may require additional examinations for any individual found to have violated any state or federal securities law.

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

3. Waivers

a. The examination requirement shall not apply to an individual who currently holds one of the following professional designations:

(1) Certified Financial Planner^TM/CFP® certification awarded by the International Board of Standards and Practices for Certified Financial Planners, Inc.;

(2) Chartered Financial Consultant (ChFC) awarded by the American College, Bryn Mawr, Pennsylvania;

(3) Personal Financial Specialist (PFS) awarded by the American Institute of Certified Public Accountants;

(4) Chartered Financial Analyst (CFA) awarded by the Institute of Chartered Financial Analysts;

(5) Chartered Investment Counselor (CIC) awarded by the Investment Counsel Association of America, Inc.; or

(6) Such other professional designation as the Director may by rule or order recognize.

B. Each applicant for an initial license as a sales representative must pass, as above, the Securities Industry Essentials ("SIE") Exam, the Series 63 or the Series 66, and either the Series 2 or the Series 7 examinations, unless the applicant's proposed securities activities will be restricted, in which case the applicant is required to pass, as above, each examination administered by the FINRA which relates to the applicant's proposed activities.

C. Prior to issuance of an initial broker-dealer license, and at all times thereafter, at least one (1) person located in the principal office of the broker-dealer shall be designated in the license application to act in a supervisory capacity and be licensed as a registered representative of the broker-dealer. Each designated supervisor shall meet the examination requirement of § 1.13(B) of this Part and pass, as above, the FINRA General Securities Principal Qualification exam (Series 24), unless the broker-dealer's proposed securities activities will be restricted, in which case the designated supervisor is required to pass, as above, each examination administered by the FINRA which relates to the broker-dealer's securities activities.

D. The examination or program/designation requirements in §§ 1.13(A) and (B) of this Part may be waived for any applicant who meets the requirements of either of the following:

1. The applicant has been licensed in the same capacity under the RIUSA at any time within two (2) years prior to the date the application is filed; or

2. The applicant, within two (2) years prior to the date the application is filed, has been:

a. Licensed as a sales representative under the securities law of any other state which required passage of the Series 63 or Series 66 and registered with FINRA; or

b. Licensed as an investment adviser representative under the securities law of any other state which requires passage of the Series 65 or Series 66.

E. A bona fide officer or director of an issuer selling securities registered under SCOR is exempt from the examination requirements for sales representative registration if that person will not be receiving sales related compensation so long as:

1. Any officer or director who offers of sells securities registered under SCOR must provide a copy of the "Consumers Guide to Small Business Investments" to all offerees at or before the time the offering document is required to be delivered.

2. The registration of any person relying on the exemption set forth in this section may be suspended or revoked if that person fails to deliver a copy of the "Consumers Guide to Small Business Investments" to any person to whom securities are offered or sold pursuant to the SCOR offering for which that person is registered.

3. To qualify for the exemption set forth above, a person must submit to the Director an affidavit representing that the person:

a. Is a bona fide officer or director of the SCOR issuer;

b. Will provide all persons to whom securities are offered or sold with a copy of "Consumers Guide to Small Business Investments";

c. Will not be receiving sales related compensation for the sale of the SCOR securities;

d. Understands that the sales representative registration will only authorize the offer and sale of securities on behalf of the issuer of the SCOR offering to be carried out pursuant to the registration statement that has been filed with the Department; and

e. Understands that failure to provide all offerees with a copy of "Consumers Guide to Small Business" is grounds for revocation or suspension of the sales representatives' registration.

230 R.I. Code R. 230-RICR-50-05-1.13