Florida Regulations 69W-600.0023: Application for Registration as an Associated Person (Issuer/Dealer)
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(1) New Applications.
(a) Applicants for initial registration as a principal or associated person of an issuer/dealer shall file the Uniform Application for Securities Industry Registration or Transfer (Form U4) electronically on the Office of Financial Regulation’s website at https://real.flofr.com through the Regulatory Enforcement and Licensing (REAL) System as prescribed by the Financial Services Commission (Commission). The application shall include all information required by such form, any other information the Office of Financial Regulation (Office) may require, and payment of the statutory fees required by Florida Statutes § 517.12(10) The application shall be deemed received on the date the Office issues a confirmation of submission and payment to the applicant via the Office’s website. Every application or amendment filed pursuant to this rule shall constitute a “”written application”” within the meaning of Florida Statutes § 517.12(6)
(b) An application shall include the following:
1. Form U4 (05/2009), which is hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-12572.
2. Statutory fee, for each application, in the amount as required by Florida Statutes § 517.12(10)
3. Persons requesting a fee waiver as set forth in Florida Statutes § 517.12(10), shall submit Office of Financial Regulation Active Military Member/Veteran/Spouse Fee Waiver and Military Service Verification, Form OFR-MIL-001, effective 09/2018. A sample form is hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-09913. Form OFR-MIL-001 shall be submitted within one hundred eighty (180) days after receipt of the application.
4. Evidence of examinations/qualifications set forth in subsection (6) of this rule.
5. Fingerprints shall be submitted in accordance with Florida Statutes § 517.12(7), and subsection (7) of this rule.
(2) Request for Additional Information. All information required by subsection (1) of this rule, shall be submitted with the original application filing. Any request for additional documents or information shall be made by the Office within thirty (30) days after receipt of the application. Additional information shall be submitted directly with the Office within sixty (60) days after a request has been made by the Office. The Office shall grant a request for an additional thirty (30) days to submit the additional information. The Office shall not grant a request after the original sixty (60) day deadline has passed. Failure to provide timely all additional information shall result in the application being deemed abandoned, which shall result in the application being removed from further consideration by the Office and closed.
(3) Amendment of Application. If the information contained in any Form U4 becomes inaccurate for any reason before or after the associated person becomes registered, the associated person through the dealer shall be responsible for correcting the inaccurate information within thirty (30) days. If the information being updated relates to the applicant’s or registrant’s disciplinary history, in addition to updating the Form U4, the associated person through the dealer shall also provide the Office with notice and copies of each civil, criminal or administrative action initiated against the associated person as provided in subsection (10) of this rule. Associated persons of issuer/dealers shall file such amendments electronically with the Office through the REAL System.
(4) Multiple Registration An applicant for registration as an associated person may apply to be registered as an associated person of more than one dealer, issuer/dealer, federal covered adviser or investment adviser, or any combination thereof, by the filing of separate applications by each registered dealer, issuer/dealer, federal covered adviser or investment adviser, and payment of separate application fees as required.
(5) Alternate Business Name.
(a) An issuer required to be registered or who elects to be registered pursuant to Section 517.12(1), 517.051(9) or 517.061(11), F.S., selling its own securities exclusively through its principals or agents (as those terms are defined in Florida Statutes § 517.021, and Fl. Admin. Code R. 69W-200.001, respectively) may obtain registration as an issuer/dealer by filing as required under subsection (1) of this rule, Rule 69W-500.011 or 69W-600.0013, F.A.C., as appropriate, provided that:
1. The associated persons of said issuer/dealer comply with the registration requirements of Florida Statutes § 517.12, and subsections (6) and (7) of this rule, provided that such person primarily performs, or is intended to perform at the end of the distribution, substantial duties for, or on behalf of, the issuer other than in connection with transactions in securities,
2. Said issuer/dealer may register up to five (5) associated persons, which persons shall be exempted from the examination requirements of subsection (6) of this rule, provided such issuer/dealer shall register no more than five (5) associated persons, and at the time of application for registration advises the Office of its intention to register no more than five (5) associated persons. Failure to so advise the Office shall require all associated person applicants to fulfill the examination requirements of subsection (6) of this rule. Registration of more than five (5) such associated persons, at any one time, shall void this exemption, and all such associated persons shall be required to meet the examination requirements of subsection (6) of this rule.
(b) It is prohibited for any associated person to conduct securities business in this state under any name other than that of the dealer with which the associated person is registered unless each of the following conditions is met:
1. The business conducted does not violate or evade any provision of Florida Statutes Chapter 517,
2. The business conducted does not fall within the definition of “”dealer”” or “”investment adviser”” as used in Florida Statutes Chapter 517; and,
3. The dealer with which the associated person is registered has received written notice of the name under which business shall be conducted.
(c) Associated persons exempted from the examination requirements as provided by subparagraph (5)(a)2., may not be registered with more than one (1) issuer/dealer at the same time.
(6) Examinations/Qualifications.
(a) Every applicant for registration shall execute and submit a statement attesting to said applicant’s knowledge and review of the Florida Securities and Investor Protection Act, as contained in the Form U4.
(b) Every applicant for initial registration as a principal or agent of a dealer shall evidence securities general knowledge by:
1. Submitting to the Office proof of passing, within two years of the date of application for registration, an examination relating to the position to be filled administered by a national securities exchange registered with the Securities and Exchange Commission (SEC); or
2. Submitting to the Office evidence of effective registration, within the preceding two years, with a national securities association or national stock exchange registered with the SEC, relating to the position to be filled as principal or agent; or
3. Having remained continuously registered in the capacity to be filled with the State of Florida without interruption of more than two years; or
4. Having complied with the provisions of subparagraph (5)(a)2. of this rule; or
5. Submitting to the Office proof of passing, within two years of the date of application for registration, an examination relating to the position to be filled administered by a national securities association and proof of passing, within four years of the date of application for registration, the Securities Industry Essentials (SIE) Examination. The following individuals will be considered to have passed the SIE Examination:
a. Individuals whose registration as an associated person was terminated between October 1, 2014, and September 30, 2018, provided they re-register as an associated person within four years from the date of their last registration;
b. Individuals who registered as an associated person prior to October 1, 2018, and who continue to maintain those registrations on or after October 1, 2018; or
6. Submitting to the Office proof of participation in the FINRA Maintaining Qualification Program (MQP) as set forth in FINRA Rule 1240(c), which is incorporated by reference in Fl. Admin. Code R. 69W-200.002, and maintenance of the validity of the examinations relating to the position to be filled administered by a national securities association to be demonstrated by meeting the conditions of participation in the MQP. Participation in the MQP shall not extend the validity period for the Uniform Investment Adviser Law Examination (Series 65) or the Uniform Combined State Law Examination (Series 66) for purposes of associated person of an investment adviser or federal covered adviser registration.
(c) The examination requirement for associated persons of issuer dealers shall not apply to an individual who currently holds one of the following professional designations:
1. Certified Financial Planner (TM) or CFP® awarded by the Certified Financial Planner Board of Standards, Inc.;
2. Chartered Financial Consultant (ChFC) awarded by the American College, Bryn Mawr, PA;
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; or
5. Chartered Investment Counselor (CIC) awarded by the Investment Counsel Association of America, Inc.
(7) Fingerprint Requirements. Fingerprints filed in accordance with Florida Statutes § 517.12(7), shall be submitted to the Office through a live scan vendor approved by the Florida Department of Law Enforcement (FDLE) and published on FDLE’s website for submission to FDLE and the Federal Bureau of Investigation (FBI) for a state criminal background check and a federal criminal background check. The cost of fingerprint processing shall be borne by the applicant and paid directly to the live scan vendor.
(8) Renewal Requirement.
(a) Renewal fees for associated persons of issuer/dealer firms shall be filed by the firm electronically on the Office’s website at https://real.flofr.com through the REAL System and shall be deemed received on the date the Office issues a confirmation of submission and payment to the applicant via the Office’s website as required by Florida Statutes § 517.12(11) All renewal fees must be received by the Office by December 31 of the year the registration expires.
(b) Failure of the firm to submit the requisite amount of fees by December 31 of the year of expiration of the registration shall result in such registration not being renewed. If December 31 falls on a Saturday, Sunday or legal holiday pursuant to Florida Statutes § 110.117, the renewals received on the next business day shall be considered timely received. However, an expired registration may be reinstated in accordance with Florida Statutes § 517.12(11), provided that all requisite information and fees are filed electronically on the Office’s website at https://real.flofr.com through the REAL System on or before January 31 of the year following the year of expiration. Failure to submit the requisite amount of fees necessary to reinstate registration by January 31 of the year following the year of expiration shall result in such registration not being reinstated. If January 31 falls on a Saturday, Sunday, or legal holiday pursuant to Florida Statutes § 110.117, the reinstatement received on the next business day shall be considered timely received. If the renewal or reinstatement is withdrawn or not granted, any fees filed to renew or reinstate registration shall become the revenue of the state pursuant to Florida Statutes § 517.12(10), and shall not be returnable.
(c) Persons requesting a fee waiver as set forth in Section 517.12(11) F.S., shall submit Office of Financial Regulation Active Military Member/Veteran/Spouse Fee Waiver and Military Service Verification, Form OFR-MIL-001, effective 09/2018. A sample form is hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-09913. Form OFR-MIL-001 shall be submitted within one hundred eighty (180) days after receipt of the renewal fees.
(9) Termination of Registration of Principal or Agent.
(a) Where a registrant withdraws, cancels, or otherwise terminates registration, or is terminated for any reason, notice of such fact shall be filed with the Office within thirty (30) calendar days of the date of termination by electronically filing a Uniform Termination Notice for Securities Industry Registration (Form U5) (05/2009) with the Office through the CRD. A sample form is hereby incorporated by reference and is available at http://www.flrules.org/Gateway/reference.asp?No=Ref-12574.
(b) The Office may deny any request to terminate or withdraw any application or registration as provided under Florida Statutes § 517.161(5)
(10) Notice of Civil, Criminal or Administrative Action. An associated person shall:
(a) Notify the Office within thirty (30) calendar days of the date a complaint is served, of any civil, criminal or administrative charges filed that directly or indirectly relate to the registration or sale of securities, or which directly or indirectly relate to activities as a principal or agent, or any other activity where a breach of a fiduciary trust is alleged. This shall not include minor traffic violations; but shall include any notification of investigation by any recognized regulatory agency.
(b) Notify the Office within thirty (30) calendar days of the date of decision, order, or sanction rendered, or any appeal filed with respect to such decision with regard to any complaint outlined in paragraph (10)(a).
(c) Such notifications shall be filed with the Office through the REAL System in accordance with subsection (3) of this rule. When specifically requested by the Office pursuant to Florida Statutes § 517.021, one (1) copy of such complaint, answer or reply to any complaint, decision, order, or sanction shall be filed with the Office through the REAL System. Responses to requests by the Office for additional information shall be filed with the Office through the REAL System.
Rulemaking Authority 517.03(1), 517.12 FS. Law Implemented Florida Statutes § 517.12. History-New 12-29-15, Amended 9-25-18, 11-26-19, 1-18-21, 2-14-23.
Terms Used In Florida Regulations 69W-600.0023
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Answer: The formal written statement by a defendant responding to a civil complaint and setting forth the grounds for defense.
- Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
- Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Fiduciary: A trustee, executor, or administrator.
(b) An application shall include the following:
1. Form U4 (05/2009), which is hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-12572.
2. Statutory fee, for each application, in the amount as required by Florida Statutes § 517.12(10)
3. Persons requesting a fee waiver as set forth in Florida Statutes § 517.12(10), shall submit Office of Financial Regulation Active Military Member/Veteran/Spouse Fee Waiver and Military Service Verification, Form OFR-MIL-001, effective 09/2018. A sample form is hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-09913. Form OFR-MIL-001 shall be submitted within one hundred eighty (180) days after receipt of the application.
4. Evidence of examinations/qualifications set forth in subsection (6) of this rule.
5. Fingerprints shall be submitted in accordance with Florida Statutes § 517.12(7), and subsection (7) of this rule.
(2) Request for Additional Information. All information required by subsection (1) of this rule, shall be submitted with the original application filing. Any request for additional documents or information shall be made by the Office within thirty (30) days after receipt of the application. Additional information shall be submitted directly with the Office within sixty (60) days after a request has been made by the Office. The Office shall grant a request for an additional thirty (30) days to submit the additional information. The Office shall not grant a request after the original sixty (60) day deadline has passed. Failure to provide timely all additional information shall result in the application being deemed abandoned, which shall result in the application being removed from further consideration by the Office and closed.
(3) Amendment of Application. If the information contained in any Form U4 becomes inaccurate for any reason before or after the associated person becomes registered, the associated person through the dealer shall be responsible for correcting the inaccurate information within thirty (30) days. If the information being updated relates to the applicant’s or registrant’s disciplinary history, in addition to updating the Form U4, the associated person through the dealer shall also provide the Office with notice and copies of each civil, criminal or administrative action initiated against the associated person as provided in subsection (10) of this rule. Associated persons of issuer/dealers shall file such amendments electronically with the Office through the REAL System.
(4) Multiple Registration An applicant for registration as an associated person may apply to be registered as an associated person of more than one dealer, issuer/dealer, federal covered adviser or investment adviser, or any combination thereof, by the filing of separate applications by each registered dealer, issuer/dealer, federal covered adviser or investment adviser, and payment of separate application fees as required.
(5) Alternate Business Name.
(a) An issuer required to be registered or who elects to be registered pursuant to Section 517.12(1), 517.051(9) or 517.061(11), F.S., selling its own securities exclusively through its principals or agents (as those terms are defined in Florida Statutes § 517.021, and Fl. Admin. Code R. 69W-200.001, respectively) may obtain registration as an issuer/dealer by filing as required under subsection (1) of this rule, Rule 69W-500.011 or 69W-600.0013, F.A.C., as appropriate, provided that:
1. The associated persons of said issuer/dealer comply with the registration requirements of Florida Statutes § 517.12, and subsections (6) and (7) of this rule, provided that such person primarily performs, or is intended to perform at the end of the distribution, substantial duties for, or on behalf of, the issuer other than in connection with transactions in securities,
2. Said issuer/dealer may register up to five (5) associated persons, which persons shall be exempted from the examination requirements of subsection (6) of this rule, provided such issuer/dealer shall register no more than five (5) associated persons, and at the time of application for registration advises the Office of its intention to register no more than five (5) associated persons. Failure to so advise the Office shall require all associated person applicants to fulfill the examination requirements of subsection (6) of this rule. Registration of more than five (5) such associated persons, at any one time, shall void this exemption, and all such associated persons shall be required to meet the examination requirements of subsection (6) of this rule.
(b) It is prohibited for any associated person to conduct securities business in this state under any name other than that of the dealer with which the associated person is registered unless each of the following conditions is met:
1. The business conducted does not violate or evade any provision of Florida Statutes Chapter 517,
2. The business conducted does not fall within the definition of “”dealer”” or “”investment adviser”” as used in Florida Statutes Chapter 517; and,
3. The dealer with which the associated person is registered has received written notice of the name under which business shall be conducted.
(c) Associated persons exempted from the examination requirements as provided by subparagraph (5)(a)2., may not be registered with more than one (1) issuer/dealer at the same time.
(6) Examinations/Qualifications.
(a) Every applicant for registration shall execute and submit a statement attesting to said applicant’s knowledge and review of the Florida Securities and Investor Protection Act, as contained in the Form U4.
(b) Every applicant for initial registration as a principal or agent of a dealer shall evidence securities general knowledge by:
1. Submitting to the Office proof of passing, within two years of the date of application for registration, an examination relating to the position to be filled administered by a national securities exchange registered with the Securities and Exchange Commission (SEC); or
2. Submitting to the Office evidence of effective registration, within the preceding two years, with a national securities association or national stock exchange registered with the SEC, relating to the position to be filled as principal or agent; or
3. Having remained continuously registered in the capacity to be filled with the State of Florida without interruption of more than two years; or
4. Having complied with the provisions of subparagraph (5)(a)2. of this rule; or
5. Submitting to the Office proof of passing, within two years of the date of application for registration, an examination relating to the position to be filled administered by a national securities association and proof of passing, within four years of the date of application for registration, the Securities Industry Essentials (SIE) Examination. The following individuals will be considered to have passed the SIE Examination:
a. Individuals whose registration as an associated person was terminated between October 1, 2014, and September 30, 2018, provided they re-register as an associated person within four years from the date of their last registration;
b. Individuals who registered as an associated person prior to October 1, 2018, and who continue to maintain those registrations on or after October 1, 2018; or
6. Submitting to the Office proof of participation in the FINRA Maintaining Qualification Program (MQP) as set forth in FINRA Rule 1240(c), which is incorporated by reference in Fl. Admin. Code R. 69W-200.002, and maintenance of the validity of the examinations relating to the position to be filled administered by a national securities association to be demonstrated by meeting the conditions of participation in the MQP. Participation in the MQP shall not extend the validity period for the Uniform Investment Adviser Law Examination (Series 65) or the Uniform Combined State Law Examination (Series 66) for purposes of associated person of an investment adviser or federal covered adviser registration.
(c) The examination requirement for associated persons of issuer dealers shall not apply to an individual who currently holds one of the following professional designations:
1. Certified Financial Planner (TM) or CFP® awarded by the Certified Financial Planner Board of Standards, Inc.;
2. Chartered Financial Consultant (ChFC) awarded by the American College, Bryn Mawr, PA;
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; or
5. Chartered Investment Counselor (CIC) awarded by the Investment Counsel Association of America, Inc.
(7) Fingerprint Requirements. Fingerprints filed in accordance with Florida Statutes § 517.12(7), shall be submitted to the Office through a live scan vendor approved by the Florida Department of Law Enforcement (FDLE) and published on FDLE’s website for submission to FDLE and the Federal Bureau of Investigation (FBI) for a state criminal background check and a federal criminal background check. The cost of fingerprint processing shall be borne by the applicant and paid directly to the live scan vendor.
(8) Renewal Requirement.
(a) Renewal fees for associated persons of issuer/dealer firms shall be filed by the firm electronically on the Office’s website at https://real.flofr.com through the REAL System and shall be deemed received on the date the Office issues a confirmation of submission and payment to the applicant via the Office’s website as required by Florida Statutes § 517.12(11) All renewal fees must be received by the Office by December 31 of the year the registration expires.
(b) Failure of the firm to submit the requisite amount of fees by December 31 of the year of expiration of the registration shall result in such registration not being renewed. If December 31 falls on a Saturday, Sunday or legal holiday pursuant to Florida Statutes § 110.117, the renewals received on the next business day shall be considered timely received. However, an expired registration may be reinstated in accordance with Florida Statutes § 517.12(11), provided that all requisite information and fees are filed electronically on the Office’s website at https://real.flofr.com through the REAL System on or before January 31 of the year following the year of expiration. Failure to submit the requisite amount of fees necessary to reinstate registration by January 31 of the year following the year of expiration shall result in such registration not being reinstated. If January 31 falls on a Saturday, Sunday, or legal holiday pursuant to Florida Statutes § 110.117, the reinstatement received on the next business day shall be considered timely received. If the renewal or reinstatement is withdrawn or not granted, any fees filed to renew or reinstate registration shall become the revenue of the state pursuant to Florida Statutes § 517.12(10), and shall not be returnable.
(c) Persons requesting a fee waiver as set forth in Section 517.12(11) F.S., shall submit Office of Financial Regulation Active Military Member/Veteran/Spouse Fee Waiver and Military Service Verification, Form OFR-MIL-001, effective 09/2018. A sample form is hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-09913. Form OFR-MIL-001 shall be submitted within one hundred eighty (180) days after receipt of the renewal fees.
(9) Termination of Registration of Principal or Agent.
(a) Where a registrant withdraws, cancels, or otherwise terminates registration, or is terminated for any reason, notice of such fact shall be filed with the Office within thirty (30) calendar days of the date of termination by electronically filing a Uniform Termination Notice for Securities Industry Registration (Form U5) (05/2009) with the Office through the CRD. A sample form is hereby incorporated by reference and is available at http://www.flrules.org/Gateway/reference.asp?No=Ref-12574.
(b) The Office may deny any request to terminate or withdraw any application or registration as provided under Florida Statutes § 517.161(5)
(10) Notice of Civil, Criminal or Administrative Action. An associated person shall:
(a) Notify the Office within thirty (30) calendar days of the date a complaint is served, of any civil, criminal or administrative charges filed that directly or indirectly relate to the registration or sale of securities, or which directly or indirectly relate to activities as a principal or agent, or any other activity where a breach of a fiduciary trust is alleged. This shall not include minor traffic violations; but shall include any notification of investigation by any recognized regulatory agency.
(b) Notify the Office within thirty (30) calendar days of the date of decision, order, or sanction rendered, or any appeal filed with respect to such decision with regard to any complaint outlined in paragraph (10)(a).
(c) Such notifications shall be filed with the Office through the REAL System in accordance with subsection (3) of this rule. When specifically requested by the Office pursuant to Florida Statutes § 517.021, one (1) copy of such complaint, answer or reply to any complaint, decision, order, or sanction shall be filed with the Office through the REAL System. Responses to requests by the Office for additional information shall be filed with the Office through the REAL System.
Rulemaking Authority 517.03(1), 517.12 FS. Law Implemented Florida Statutes § 517.12. History-New 12-29-15, Amended 9-25-18, 11-26-19, 1-18-21, 2-14-23.