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§7-11-206  Licensing and notice fees; and filing requirements for federal covered advisers. –

Published: 2015

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Corporations, Associations, and Partnerships


Rhode Island Uniform Securities Act

PART 7-11-201

Licensing of Broker Dealers, Sales Representatives, and Investment Advisers and

Investment Adviser Representatives

SECTION 7-11-206

   § 7-11-206  Licensing and notice fees; and

filing requirements for federal covered advisers. –

(a) A federal covered adviser or an applicant for licensing shall pay an annual

fee as follows:

   (1) Broker dealer three hundred dollars ($300) and for each

branch office one hundred dollars ($100);

   (2) Sales representative seventy-five dollars ($75.00);

   (3) Investment adviser three hundred dollars ($300);

   (4) Investment adviser representative sixty dollars ($60.00);


   (5) Federal covered adviser three hundred dollars ($300).

   (b) Except with respect to federal covered advisers whose

only clients are those described in § 7-11-204(1)(i), a federal covered

adviser shall file any documents filed with the U.S. Securities and Exchange

Commission with the director, that the director requires by rule or order,

together with any notice fee and consent to service of process that the

director requires by rule or order. The notice filings under this subsection

expire annually on December 31, unless renewed.

   (c) A notice filing under this section is effective from

receipt until the end of the calendar year. A notice filing may be renewed by

filing any documents that have been filed with the U.S. Securities and Exchange

Commission as required by the director along with a renewal fee of three

hundred dollars ($300).

   (d) A federal covered adviser may terminate a notice filing

upon providing the director notice of the termination, which is effective upon

receipt by the director.

   (e) Notwithstanding the provisions of this section, until

October 11, 1999, the director may require the registration as an investment

adviser of any federal covered adviser who has failed to promptly pay the fees

required by this section after written notification from the director of the

non-payment or underpayment of the fees. A federal covered adviser is

considered to have promptly paid the fees if they are remitted to the director

within fifteen (15) days following the federal covered adviser's receipt of

written notice from the director.

   (f) For purposes of this section, "branch office" means any

location where one or more associated persons of a broker-dealer regularly

conducts the business of effecting any transactions in, or inducing or

attempting to induce the purchase or sale of any security, or is held out as

such, excluding:

   (1) Any location that is established solely for customer

service and/or back office type functions where no sales activities are

conducted and that is not held out to the public as a branch office;

   (2) Any location that is the associated person's primary

residents; provided that:

   (i) Only one associated person, or multiple associated

persons who reside at that location and are members of the same immediate

family, conduct business at the location;

   (ii) The location is not held out to the public as an office

and the associated person does not meet with customers at the location;

   (iii) Neither customer funds nor securities are handled at

that location;

   (iv) The associated person is assigned to a designated branch

office, and such designated branch office is reflected on all business cards,

stationery, advertisements and other communications to the public by such

associated person;

   (v) The associated person's correspondence and communications

with the public are subject to the firm's supervision in accordance with Rule

3010 of the Financial Industry Regulatory Authority;

   (vi) Electronic communications are made through the

broker-dealer's electronic system;

   (vii) All orders are entered through the designated branch

office or an electronic system established by the broker-dealer that is

reviewable at the branch office;

   (viii) Written supervisory procedures pertaining to

supervision of sales activities conducted at the residence are maintained by

the broker-dealer; and

   (ix) A list of the residence locations is maintained by the


   (3) Any location, other than a primary residence, that is

used for securities business for less than thirty (30) business days in any one

calendar year, provided the broker-dealer complies with the provisions of

paragraph (f)(2)(i) through (ix) above;

   (4) Any office of convenience, where associated person

occasionally and exclusively by appointment meet with customers, which is not

held out to the public as an office.

   (5) Any location that is used primarily to engage in

non-securities activities and from which the associated person(s) effects no

more than twenty-five (25) securities transactions in any one calendar year;

provided that any advertisement or sales literature identifying such location

also sets forth the address and telephone number of the location from which the

associated person(s) conducting business at the non-branch locations are

directly supervised;

   (6) The floor of a registered national securities exchange

where a broker-dealer conducts a direct access business with public customers.

   (7) A temporary location established in response to the

implementation of a business continuity plan.

   (8) Notwithstanding the exclusions in paragraph (f), any

location that is responsible for supervising the activities of persons

associated with the broker-dealer at one or more non-branch locations of the

broker-dealer is considered to be a branch office.

   (9) The term "business day" as used in subsection 7-11-206(f)

shall not include any partial business day provided that the associated person

spends at least four (4) hours on such business day at his or her designated

branch office during the hours that such office is normally open for business.

   (10) Where such office of convenience is located on bank

premises, signage necessary to comply with applicable federal and state laws,

rules and regulations and applicable rules and regulations of the New York

Stock Exchange, other self-regulatory organizations, and securities and banking

regulators may be displayed and shall not be deemed "holding out" for purposes

of subdivision 7-11-206(f)(iv).

   (g) If an application is denied or withdrawn or the license

is revoked, suspended, or withdrawn, the director is not required to refund the

fee paid.

   (h) The director may issue a stop order suspending the

activities of a federal covered adviser in this state if the director

reasonably believes there has been a violation of the provisions of this


History of Section.

(P.L. 1990, ch. 460, § 2; P.L. 1997, ch. 69, § 1; P.L. 2008, ch. 32,

§ 1; P.L. 2008, ch. 73, § 1; P.L. 2009, ch. 68, art. 12, § 3;

P.L. 2011, ch. 151, art. 19, § 12.)