Cal. Code Regs. tit. 10 § 260.217

Current through Register 2024 Notice Reg. No. 29, July 19, 2024

Section 260.217 - Qualifications of Broker-Dealers, Compliance Supervisors and Reported Agents

(a) Every individual who is a broker-dealer, or a compliance supervisor or reported agent of a broker-dealer:

(1) shall have passed, within two years prior to the date of filing the application for, or the issuance of, a broker-dealer license, or becoming a compliance supervisor or reported agent of a licensed broker-dealer, the Series 63/Uniform Securities Agent State Law Examination ("Series 63 Examination") or the Series 66/Uniform Combined State Law Examination ("Series 66 Examination"), both of which are administered by the Financial Industry Regulatory Authority; and

(2) shall meet all applicable examination requirements of the Securities and Exchange Commission and the self-regulatory organizations of which the broker-dealer is a member.

(b) The provisions of subsection (a)(1) shall not apply to an individual:

(1) who was a broker-dealer licensed under the Code (or a compliance supervisor or reported agent of a broker-dealer licensed under the Code) on May 22, 1989, or

(2) who has been an active broker-dealer (or a compliance supervisor or reported agent of a broker-dealer) without an interruption of two or more years since passing the Series 63 Examination or the Series 66 Examination or not being required to take the Series 63 Examination or the Series 66 Examination pursuant to subsection (b)(1).

(d) The provisions of this section do not apply to a broker-dealer or a compliance supervisor or reported agent of a broker-dealer when acting within the scope of his or her affiliation with a broker-dealer:

(1) who is licensed by the State Cemetery Bureau as a Cemetery Authority or as a Cemetery Broker under Sections 9700 through 9723.3 of the Business and Professions Code and who sells only the securities of one issuer in connection with arrangements for funerals or cemetery space; or

(2) who sells only evidences of indebtedness of issuers organized exclusively for religious purposes and not for pecuniary profit.

(e) Definitions. For purposes of this section:

(1) "Compliance supervisor" of a broker-dealer means every individual who has responsibility of ensuring that reported agents comply with the Corporate Securities Law of 1968 and the rules thereunder.

(2) "Reported agent" means every agent employed by a broker-dealer and whose employment has been reported in accordance with Section 260.210 of these rules.

Cal. Code Regs. Tit. 10, § 260.217

1. Amendment of subsection (c)(2) filed 12-23-69 as an emergency; designated effective 1-2-70 (Register 69, No. 52).
2. Certificate of Compliance-section 11422.1, Gov. Code, filed 3-26-70 (Register 70, No. 13).
3. Amendment of subsection (c)(2) filed 7-20-72; effective thirtieth day thereafter (Register 72, No. 30).
4. Amendment of subsection (a) filed 6-28-73; effective thirtieth day thereafter (Register 73, No. 26).
5. Editorial correction (Register 73, No. 36).
6. Amendment filed 11-28-79 as an emergency; designated effective 1-1-80. Certificate of Compliance included (Register 79, No. 48).
7. Editorial correction of subsections (a) and (c) filed 11-9-82 (Register 82, No. 46).
8. Amendment filed 4-23-90; operative 5-23-90 (Register 90, No. 20).
9. Editorial correction of printing error in subsections (a)(1)(A) and (a)(1)(B) (Register 91, No. 44).
10. Amendment filed 12-31-97; operative 1-1-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 1).
11. Change without regulatory effect repealing subsection (c) filed 9-25-2002 pursuant to section 100, title 1, California Code of Regulations (Register 2002, No. 39).
12. Amendment of subsections (a)(1) and (d)(1) filed 11-10-2009; operative 12-10-2009 (Register 2009, No. 46).

Note: Authority cited: Sections 25217(a) and 25610, Corporations Code. Reference: Section 25217, Corporations Code.