Kentucky Administrative Regulations
Title 808 - PUBLIC PROTECTION CABINET - DEPARTMENT OF FINANCIAL INSTITUTIONS
Chapter 10 - Securities
Section 808 KAR 10:042 - Use of Senior Certifications and Designations
Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 292.320(1)(c), 292.320(2)(b), 292.337(2)(h), 292.470, 292.530(1)(a)
NECESSITY, FUNCTION, AND CONFORMITY: KRS 292.500(3) authorizes the commissioner to promulgate administrative regulations necessary to carry out the provisions of KRS Chapter 292. KRS 229.336(6) authorizes the commissioner to promulgate administrative regulations for the conduct of business by broker-dealers and investment advisors. KRS 292.337(2)(h) authorizes the commissioner to take legal action against an applicant or registrant if the person has engaged in dishonest or unethical practices in the securities business. This administrative regulation sets forth practices that are fraudulent or deceptive within the meaning of KRS 292.320 or dishonest and unethical within the meaning of KRS 292.337(2)(h).
Section 1. Definition. "Financial Services Regulatory Agency" means an agency that regulates broker-dealers, investment advisors, or investment companies as defined under the Investment Company Act of 1940, 15 U.S.C. 80a.
Section 2. Misleading Use of Certification of Designation is Prohibited. As set forth in Section 2 of this administrative regulation, the use of a senior specific certification or designation that indicates or implies that the user has special certification or training in advising or servicing senior citizens or retirees shall be a fraudulent, deceptive, dishonest, or unethical practice in the securities business within the meaning of KRS 292.320(1)(c), 292.320(2)(b), or 292.337(2)(h), if used by any person in connection with:
Section 3. Prohibited Uses of a Certification or Designation. The prohibited use of a senior specific certification or professional designation in the securities business shall include the following:
Section 4. Rebuttable Presumption for Certifications or Designations Issued by Accredited Organizations. Solely for purposes of Section 3(4) of this administrative regulation there shall be a rebuttable presumption that a designating or certifying organization is not disqualified if the organization has been accredited by:
Section 5. Certifications and Designations Indicating Special Training. In determining whether a combination of words, or an acronym standing for a combination of words, constitutes a certification or professional designation indicating or implying that a person has special certification or training in advising or servicing senior citizens or retirees, factors to be considered shall include:
Section 6. Rebuttable Presumption for Certain Job Titles. For purposes of this administrative regulation, there shall be a rebuttable presumption that a certification or professional designation does not include a job title within an organization that is licensed or registered by a state or federal financial services regulatory agency, if that job title:
Section 7. This administrative regulation shall not limit the commissioner's authority to enforce existing provisions of law.
STATUTORY AUTHORITY: KRS 229.336(6), 292.500(3)