TITLE 7
Corporations, Associations, and Partnerships
CHAPTER 7-11
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);
and
(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
broker-dealer;
(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
section.
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.)
