(1)
Broker-dealer. Unless specifically exempt as
hereinafter provided, before a broker-dealer applicant will be considered
eligible for registration, the broker-dealer examinations in the form and
content prescribed or approved by the Commissioner must be passed, to the
extent required by this Rule, by every principal as defined by federal law,
rule, or regulation of a broker-dealer in order to test the principal's
knowledge of the securities business, state and federal securities laws, and
the responsibilities of a supervisor in the securities business.
(2)
Examinations
accepted. The Commissioner recognizes the following general
examinations administered by FINRA, and an applicant applying to be registered
as a broker-dealer shall provide proof to the Commissioner that its principals
have passed:
(a) The Series 63 Uniform
Securities Agent State Law Examination; and
(b) One of the following examinations:
1. Series 4 Registered Options Principal
Examination;
2. Series 12 Branch
Managers Examination;
3. Series 23
General Securities Principal Qualification Examination Sales Supervisor
Module;
4. Series 24 General
Principal Examination;
5. Series 26
Investment Company Products/Variable Contracts Principal Examination;
6. Series 27 Financial and Operations
Principal Examination;
7. Series 39
Direct Participation Programs Principal Examination; or
8. Series 53 Municipal Securities Principal
Examination.
(c) The
Commissioner shall establish or approve the standards for a minimum acceptable
grade in determining each applicant's qualification for registration under this
provision.
(d) Upon failure to
receive a minimum passing grade, the principal of the broker-dealer applicant
may retake the examination on the next date available. A second failure or
failure to take or retake the examination within a thirty (30)-day period from
the date the broker-dealer application was filed, shall be grounds for denial
of the broker-dealer application and an order to that effect may be entered by
the Commissioner. The broker-dealer applicant shall be considered ineligible
for licensing during a period of three (3) months from the date of denial of
the broker-dealer application by the Commissioner, at which time a new
broker-dealer application may be filed and its eligibility reexamined. The
original filing fee shall not be refunded nor applied to a subsequent
application for registration under this provision. However, the broker-dealer
application shall not be denied if:
1. The
broker-dealer applicant is qualified;
2. The broker-dealer applicant meets the
requirements of subsection (2)(e); and
3. The principal of that applicant who fails
the examination qualifies for an exemption under subsection (2)(g).
(e) The following are the
examination requirements for principals of a broker-dealer:
1. In the case of a partnership, a
corporation, or another association, including, but not limited to a limited
liability company, at least two (2) partners, officers, directors, or persons
or members occupying a similar position must satisfy the examination
requirement.
2. If the
broker-dealer maintains no branch offices and employs no more than ten (10)
agents who have contact with the public, only one (1) of those persons must
satisfy the examination requirement.
(f) An application shall be deemed incomplete
until there is a showing of compliance with the examination requirements or an
exemption from those requirements.
(g) The examination requirements may be
waived by a proper showing or certification that the principal, prior to the
broker-dealer making application with the Commissioner, has:
1. Taken an examination in the form and
content approved by the Commissioner within the preceding two (2) years, and
passed the examination with the minimum acceptable passing grade for
broker-dealer applicants; or
2.
Taken an examination in the form and content prescribed or approved by the
Commissioner, attained an acceptable passing grade, and thereafter, remained
continuously in the securities business, duly licensed by another
state.
(3)
Broker-dealer agent. The Commissioner recognizes the
following general examinations, and an applicant applying to be registered as
an agent shall provide proof to the Commissioner that the applicant has passed
within the two-year period immediately preceding the date of the application,
except in regards to the Securities Industry Essentials (SIE) Exam which the
applicant shall take and pass within the four-year period immediately preceding
the date of the application:
(a) The Series 63
Uniform Securities Agent State Law Examination administered by FINRA;
and
(b) One of the following
securities examinations or combination of examinations:
1. FINRA Series 1 Registered Representative
Examination;
2. FINRA Series 2
Non-Member General Securities Examination;
3. FINRA Series 6/S6TO Investment Company
Products/Variable Contracts Representative Examination and the Securities
Industry Essentials (SIE) Exam;
4.
FINRA Series 7/S7TO General Securities Representative Examination and the
Securities Industry Essentials (SIE) Exam;
5. FINRA Series 22/S22TO Direct Participation
Programs Representative Examination and the Securities Industry Essentials
(SIE) Exam;
6. FINRA Series
52/S52TO Municipal Securities Representative Examination and the Securities
Industry Essentials (SIE) Exam;
7.
NASAA Real Estate Securities Examination; or
8. FINRA Series 79/S79TO Investment Banking
Representative Examination and the Securities Industry Essentials (SIE)
Exam.
(c) The examination
requirements may be waived by a proper showing or certification that the agent,
prior to the agent making application with the Commissioner, has:
1. Taken an examination in the form and
content approved by the Commissioner within the preceding two (2) years, and
passed the examination with the minimum acceptable passing grade for agent
applicants; or
2. Taken an
examination in the form and content prescribed or approved by the Commissioner,
attained an acceptable passing grade, and thereafter, remained continuously in
the securities business, duly licensed by another state.
(4) An applicant who wishes to
rely upon his or her passing any examination other than those enumerated in
Paragraphs (2) or (3) above or who wishes to request a waiver of the
examination requirements of this Rule must submit a written request for
consideration identifying the examination in question, its content, and the
agency administering the examination, or the reason why a waiver should be
granted by the Commissioner. The Commissioner may decide whether to accept such
examination results or to grant a waiver of the examination
requirements.
(5) Any person whose
most recent registration as a broker-dealer or agent has been terminated for
two (2) or more years immediately preceding application to the Commissioner for
registration shall be required to pass the Series 63 Uniform Securities Agent
State Law Examination administered by FINRA and any other examination required
by the Commissioner pursuant to this Rule. The Commissioner may find the
applicant qualified by other examinations or significant and comprehensive
experience or expertise in the securities business.
(6) The Commissioner may cooperate with
registered securities associations and national securities exchanges in
devising and administering tests, and require that applicants pay such
association or reasonable exchange fees or charges to defray the costs incurred
by such association or exchange in administering the tests.
