Okla. Admin. Code § 660:11-7-19

Current through Vol. 42, No. 4, November 1, 2024

Section 660:11-7-19 - Registration relief for military service members and their spouses

(a)Definitions. For purposes of this Section:

(1)"Military Service Member" means any member of the Armed Forces or Reserves of the United States, National Guard of any state, the Military Reserves of any state, or the Naval Militias of any state.

(2)"Military Spouse" means an individual who is the current spouse of a Military Service Member who is on active duty in this state or claims residency in this state for the six months prior to assignment to active duty or during the period of active duty.

(b)Initial registration of a military service member.

(1) The Administrator shall consider the equivalent education, training, and experience completed by an applicant while the applicant was a member of the United States Armed Forces or Reserves, National Guard of any state, the Military Reserves of any state, or the Naval militias of any state, and apply it in the manner most favorable toward satisfying the qualification for registration.

(2) A Military Service Member, who meets the following requirements, may apply to the Administrator for expedited review for registration under the Securities Act. An applicant shall:

(A) Submit a complete application for registration on the forms prescribed by the Administrator;

(B) Notify the Administrator in writing that the Military Service Member is seeking expedited review of the application;

(C) Submit the filing fee specified in Section 1-612 of the Securities Act except as provided in (4) of this subsection;

(D) Submit evidence of passing scores on examinations equivalent to those required by 660:11-7-13; and

(E) Provide any other documentation as required by the Administrator.

(3) No applicant for registration under this Section shall be qualified for expedited review if the applicant is or has been the subject of disqualifying disciplinary action as set forth in Section 1-411.D of the Securities Act or has been discharged for cause from a broker-dealer or investment adviser.

(4) A Military Service Member who makes an initial application within one year of completion of military service may request a waiver of the initial filing fee specified in Section 1-612 of the Securities Act. An applicant shall, upon application, notify the Administrator in writing that the Military Service Member is seeking waiver of the initial filing fee.

(c)Status of a military service member.

(1)Inactive status of currently registered investment adviser representatives.

(A) If a registered investment adviser representative of an investment adviser volunteers for or is called into active duty as a Military Service Member, the investment adviser representative shall be deemed to be on inactive status upon prompt notification to the Administrator, in writing, of the individual's activation into active military duty. That individual will be deemed reactivated upon the investment adviser representative's return to active association with the investment adviser. The associated investment adviser also may allow such investment adviser representative to enter into an arrangement with another registered investment adviser representative of the investment adviser to take over and service the investment adviser representative's accounts and to share compensation based upon the business generated by such accounts. However, because such investment adviser representatives are deemed inactive, they may not perform any of the functions and responsibilities performed by a registered investment adviser representative.

(B) A registered investment adviser representative who is deemed to be on inactive status under this paragraph shall not be required to pay the fee specified in Section 1-612 of the Securities Act during the time of that investment adviser representative's inactive status and for one year thereafter.

(C) The relief provided under this paragraph shall be available only to a registered investment adviser representative who is deemed to be on inactive status under (A) of this paragraph during the period that such investment adviser representative remains registered with the investment adviser with which the investment adviser representative was registered at the beginning of active duty, regardless of whether the investment adviser representative returns to active association with another investment adviser upon completion of the investment adviser representative's active duty.

(D) The relief provided under this paragraph shall be available only to an individual registered as an investment adviser representative under the Securities Act and only with respect to the period specified in connection with that investment adviser representative's service on active military duty. Further, the investment adviser with whom such investment adviser representative is registered shall promptly notify the Administrator, in writing, of such investment adviser representative's return to active association with the investment adviser.

(2)Inactive status of sole proprietorships.

(A) If an investment adviser that is a sole proprietor temporarily closes his or her business by reason of volunteering for or being called into active military duty, the investment adviser shall be deemed to be on inactive status upon prompt notification to the Administrator, in writing, of the individual's activation into active military duty.

(B) A sole proprietor Military Service Member deemed to be on inactive status as set forth in this paragraph shall be relieved of any other filing requirements under this subchapter during the pendency of the individual's inactive status.

(C) A sole proprietor Military Service Member deemed to be on inactive status as set forth in this paragraph shall not be required to pay the fee as specified in Section 1-612 of the Securities Act during the pendency of such inactive status and for one year thereafter.

(D) The relief described in this paragraph shall be provided only to a sole proprietor Military Service Member and only with respect to the period specified in connection with his or her service on active military duty. Further, the sole proprietor shall promptly notify the Administrator, in writing, of his or her return to active participation in the investment banking or securities business. The sole proprietor must promptly file an updated Form ADV and Form U-4.

(3)Status of formerly registered investment adviser representatives.

(A) If an individual who was formerly registered as an investment adviser representative volunteers for or is called into active military duty at any time within two years after the date the individual ceased to be registered with an investment adviser, but during the period of validity of the individual's prior examination scores as set forth in OAC 660:11-7-13 ("examination scores validity periods"), the Administrator shall extend the period of validity of the individual's scores by the individual's period of active military service; provided, the validity of the scores will continue for no less than one (1) year following the individual's completion of active military service.

(B) If an individual deemed to be on inactive status as an investment adviser representative while serving as a Military Service Member ceases to be registered with an investment adviser, the Administrator shall extend the individual's examination scores validity periods by the remaining period of the individual's active military service.

(C) An individual applying to become associated with an investment adviser within one (1) year following the completion of the individual's active military service shall not be required to pay the fee specified in Section 1-612 of the Securities Act; provided the fee relief in this subparagraph shall only apply to the individual's first application for registration during such period.

(d)Initial registration of a military spouse.

(1) A Military Spouse who meets the following requirements may apply to the Administrator for expedited review for registration under the Securities Act. An applicant shall:

(A) Submit a complete application for registration on the forms prescribed by the Administrator;

(B) Notify the Administrator in writing that the Military Spouse is seeking expedited review of the application;

(C) Submit evidence of passing scores on examinations equivalent to those required by 660:11-7-13;

(D) Submit the filing fee specified in Section 1-612 of the Securities Act; and

(E) Provide any other documentation as required by the Administrator.

(2) This subsection does not apply if the applicant is or has been the subject of disqualifying disciplinary action as set forth in Section 1-411.D of the Securities Act or has been discharged for cause from a broker-dealer or investment adviser.

(3) This subsection does not apply to a Military Spouse who does not claim residence in the state of Oklahoma.

Okla. Admin. Code § 660:11-7-19

Adopted by Oklahoma Register, Volume 35, Issue 24, September 4, 2018, eff. 11/1/2018