New York Codes, Rules and Regulations
Title 13 - DEPARTMENT OF LAW
Chapter II - SECURITIES TRANSACTIONS AND PERSONNEL
Subchapter A - SECURITIES-GENERAL
Part 11 - INVESTMENT ADVISORY SERVICES
Section 11.7 - Waivers

Universal Citation: 13 NY Comp Codes Rules and Regs ยง 11.7

Current through Register Vol. 46, No. 12, March 20, 2024

(a) Prior Registration. A natural person who otherwise is required to meet the examination requirements of 11.6 of this Part shall be exempt from such requirements upon application to, and approval by, the Department of Law, provided that such person has been continuously registered to provide investment advice in any jurisdiction for a period of at least two (2) years prior to the date of filing registration information pursuant to section 11.4(c); has not had any lapse in registration exceeding two (2) years; and is not, and has not been, subject to any regulatory or civil action, proceeding or arbitration, either pending or in the preceding ten (10) years from the date of such application, that would require disclosure on Form U4.

(b) Special Waiver. Every natural person otherwise required to meet the examination requirements of 11.6(a) of this Part and who, in the regular course of business, acted as an investment adviser representative from a place of business in the State continuously and permissibly f or at least two (2) years prior to February 1, 2021 and who is not eligible f or any other waiver under this section, may be exempted from the provisions of section 11.6 of this Part upon application to, and approval by, the Department of Law. No person shall qualify for a waiver under this subdivision (b) if:

(1) That person submits an application f or registration after August 31, 2021; or

(2) That person's investment advisory activities during the two (2) years preceding December 2, 2020 were limited to serving or acting as a solicitor; or

(3) That person, for two (2) or more continuous years in the four (4) years preceding the filing of registration information, had ceased performing acts as defined in section 11.12(f) of this Part in the regular course of business from a place of business in the State; or

(4) That person currently is or has been subject to any regulatory or civil action, proceeding or arbitration, either pending or in the preceding ten (10) years from the date of such application, that would require disclosure on Form U4, or that person has been notified or has reason to believe that they currently are or remain the subject of a regulatory or law enforcement investigation related to investment related activities.

(c) Certification. The examination requirement of section 11.6 shall not apply to any natural person who currently holds one of the following professional designations in good standing:

(1) Certified Financial Planner (CFP) awarded by the Certified Financial Planner Board of Standards, Inc.;

(2) Chartered Financial Consultant (ChFC) awarded by the American College, Bryn Mawr, Pennsylvania;

(3) Personal Financial Specialist (PFS) awarded by the American Institute of Certified Public Accountants;

(4) Chartered Financial Analyst (CFA) awarded by the Association for Investment Management Research;

(5) Chartered Investment Counselor (CIC) awarded by the Investment Adviser Association; or

(6) Such other professional designation as the administrator may by rule or order recognize.

(d) Application for Waiver. Applicant waiver eligibility under subdivisions (a) and (c) of section 11.7 shall be automatically directed to the Department of Law for evaluation and approval through the Form U4 submission in CRD/IARD. All requests for specials waivers under subdivision (b) of section 11.7 must be submitted directly to the Department of Law on Form NY-IASW at the time of submission of the Form U4, unless otherwise directed by the Department of Law. Nothing in this section shall automatically revoke any examination waiver granted by the Department of Law prior to February 1, 2021 pursuant to Form NY-IAQ.

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