Minnesota Administrative Rules
Agency 120 - Commerce Department
Chapter 2876 - REGULATING SECURITIES
Part 2876.5025 - PROHIBITED USES OF SENIOR-SPECIFIC CERTIFICATIONS AND PROFESSIONAL DESIGNATIONS
Universal Citation: MN Rules 2876.5025
Current through Register Vol. 49, No. 13, September 23, 2024
Subpart 1. Generally.
The provisions of this part apply to federal covered investment advisers to the extent permitted by the National Securities Markets Improvement Act of 1996, Public Law 104-290.
Subp. 2. Prohibited uses of senior-specific certifications and professional designations.
A. The use of a senior-specific certification
or professional designation by any person in connection with the offer, sale,
or purchase of securities, or the provision of advice as to the value of or the
advisability of investing in, purchasing, or selling securities, either
directly or indirectly or through publications or writings, or by issuing or
promulgating analyses or reports relating to securities, that indicates or
implies that the user has special certification or training in advising or
servicing senior citizens or retirees, in such a way as to mislead any person
shall be a fraudulent, deceptive, and manipulative act or practice in the
securities, commodities, investment, franchise, banking, finance, or insurance
business.
B. The prohibited use of
senior-specific certifications or professional designations includes the
following:
(1) use of a certification or
professional designation by a person who has not actually earned or is
otherwise ineligible to use such certification or designation;
(2) use of a nonexistent or self-conferred
certification or professional designation;
(3) use of a certification or professional
designation that indicates or implies a level of occupational qualifications
obtained through education, training, or experience that the person using the
certification or designation does not have; and
(4) use of a certification or professional
designation that was obtained from a certifying or designating organization
that:
(a) is primarily engaged in the business
of instruction in sales or marketing;
(b) does not have reasonable standards or
procedures for assuring the competency of its certificants or
designees;
(c) does not have
reasonable standards or procedures for monitoring and disciplining its
certificants or designees for improper or unethical conduct; or
(d) does not have reasonable continuing
education requirements for its certificants or designees in order to maintain
the certificate or designation.
Subp. 3. Regulated certifications and professional designations.
A. There is
a rebuttable presumption that a certifying or designating organization is not
disqualified solely for purposes of subpart
1, item B, subitem (4), when
the certification or designation issued from the organization does not
primarily apply to sales or marketing and when the organization or the
certification or designation in question has been accredited by:
(1) the American National Standards
Institute;
(2) the National
Commission for Certifying Agencies; or
(3) any organization that is on the United
States Department of Education's list entitled "Accrediting Agencies Recognized
for Title IV Purposes."
B. 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 seniors, factors
to be considered shall include:
(1) use of one
or more words such as "senior," "retirement," "elder," or like words, combined
with one or more words such as "certified," "registered," "chartered,"
"adviser," "specialist," "consultant," "planner," or like words, in the name of
the certification or professional designation; and
(2) the manner in which those words are
combined.
C. For
purposes of this part, unless used in a manner that would mislead or confuse a
reasonable consumer, 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, when the job title:
(1) indicates seniority or standing within
the organization; or
(2) specifies
an individual's area of specialization within the organization.
For purposes of item C, financial services regulatory agency includes an agency that regulates insurers, insurance producers, broker-dealers, investment advisers, or investment companies as defined under the Investment Company Act of 1940.
Statutory Authority: MS s 45.023; 80A.82
Disclaimer: These regulations may not be the most recent version. Minnesota may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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