S.D. Admin. R. 20:08:05:27

Current through Register Vol. 51, page 67, December 16, 2024

Section 20:08:05:27 - Examination requirements

(1) Unless otherwise waived by the director of the division, an investment adviser or an investment adviser representative shall take and pass:

(a) The Uniform Investment Adviser State Law Examination (S65) within the two-year period immediately preceding the date of application; or

(b) The Uniform Combined State Law Examination (S66) and the General Securities Representative Examination (S7) within the two-year period immediately preceding the date of application; and

(c) The FINRA Securities Industry Essential Examination within four years of the date of application.

(2) If the investment adviser is an entity, then a supervisory or control individual must take and pass any examination required in subdivision (1).

(3) Any person who has been registered as an investment adviser or an investment adviser representative in any state requiring the licensing, registration, or qualification of investment advisers or investment adviser representatives within the two-year period immediately preceding the date of filing an application is not required to comply with the examination requirement set forth in subdivision (1).

(4) Compliance with subdivisions (1) and (2) is waived if the applicant has been awarded any of the following designations and, at the time of filing, an application is current and in good standing:

(a) Certified Financial Planner (CFP) awarded by the Certified Financial Planners Board of Standards, Inc;

(b) Chartered Financial Consultant awarded by the American College of Financial Services;

(c) Chartered Financial Analyst awarded by the CFA Institute;

(d) Personal Financial Specialist awarded by the American Institute of Certified Public Accountants; or

(e) Chartered Investment Management Analyst awarded by the Investment and Wealth Institute.

(5) An applicant is not required to retake and pass the Uniform Investment Advisor State Law Examination (S65) if:

(a) The applicant has passed the exam within two years prior to the date the application is filed with the director of the division; or

(b) The applicant was registered or licensed as an investment adviser or investment advisor representative within two years prior to the date the application is filed with the director of the division.

(6) An applicant is not required to retake and pass the Uniform Investment Adviser State Law Examination (S65) if the applicant is an agent for a broker-dealer or an investment adviser and is not required by the agent's home jurisdiction to make a separate filing on CRD as an investment adviser representative but has previously met the examination requirement in subdivision (1) necessary to provide advisory services on behalf of the broker-dealer or investment adviser.

(7) A person deemed to be an investment adviser representative only because the person solicits, offers, or negotiates for the sale of or sell investment advisory services in this state is not required to take and pass the examinations in subdivision (1).

(8) Any individual who is not registered as an investment adviser representative in any state for more than two years but less than five years, who has elected to participate in the FINRA Maintaining Qualifications Program, pursuant to FINRA Rule 1240(c) (April 30, 2024), and whose appropriate FINRA qualifying examinations remain valid pursuant to effective participation in the FINRA Maintaining Qualifications Program is not required to retake the appropriate FINRA qualifying examinations to comply with the examination requirements in subdivision 20:08:05:27(1); provided, however, that successful participation in the FINRA Maintaining Qualifications Program may not extend the Uniform Investment Adviser State Law Examination (S65) or the Uniform Combined State Law Examination (S66) for purposes of investment adviser representative registration.

S.D. Admin. R. 20:08:05:27

37 SDR 112, effective 12/9/2010; 51 SDR 025, effective 9/10/2024

General Authority: SDCL 47-31B-605(a).

Law Implemented: SDCL 47-31B-103, 47-31B-404(f), 47-31B-412(e), 47-31B-605(b).