230 R.I. Code R. 230-RICR-50-05-2.6

Current through October 25, 2024

Section 230-RICR-50-05-2.6 - Post-Licensing Filings

A. In accordance with R.I. Gen. Laws § 7-11-209(c)(1), the following information is required:

1. Each broker-dealer, whether or not subject to SEC Rule 17 C.F.R. § 240.17a-5, shall prepare an annual financial statement as directed by SEC Rule 17 C.F.R. § 240.17a-5. A copy of each annual financial statement shall be retained by the broker-dealer as prescribed in SEC Rule 17 C.F.R. § 240.17a-5 and, upon the written or verbal request of the Department anytime during that period, furnish a copy of said annual financial statement within seventy-two hours of the request.

2. Each broker-dealer shall file with the Department a copy of any complaint related to its business, transactions or operations naming the broker-dealer or any of its partners, officers or agents as defendant in any civil or criminal proceeding, or in any administrative or disciplinary proceeding by any public or private regulatory agency, within twenty (20) days of the date the complaint is served on the broker-dealer; a copy of any answer or reply thereto filed by the broker-dealer within ten (10) days of the date such is filed; and a copy of any decision, order or sanction made with respect to any such proceeding within twenty (20) days of the date the decision order or sanction is rendered

3. Each broker-dealer shall file with the Department a notice of transfer of control or change of name within thirty (30) days after the date on which the transfer of control or change of name occurs.

4. Except as provided in §§ 2.6(A)(2), (3) and (8) of this Part, all material changes in the information included in a broker-dealer's most recent application for license shall be set forth in an amendment to Form BD filed with the Director within thirty (30) days after the change occurs.

5. Every broker-dealer shall file with the Department the following reports concerning its net capital and aggregate indebtedness:

a. Immediate electronic or written notice whenever the net capital of the broker-dealer is less than is required under § 1.14 of this Subchapter specifying the respective amounts of its net capital and aggregated indebtedness on the date of the notice:

b. A copy of every report of notice required to be filed by the broker-dealer pursuant to SEC Rule 17 C.F.R. § 240.17a-11.

6. Each broker-dealer shall give immediate written notice to the Department of the theft or disappearance of any Rhode Island customers' securities or funds that are in the custody or control of its offices, whether within or outside this state, stating all material facts known to it concerning the theft or disappearance. However, if a broker-dealer complies with the provisions of SEC Rule 17 C.F.R. § 240.17(f)(1), such broker-dealer need not give the notice required by this paragraph.

7. Each broker-dealer shall file with the Department a copy of any subordination agreement relating to the broker-dealer, within ten (10) days after the agreement has been entered, unless prior thereto the broker-dealer has filed a copy of the agreement with a national securities exchange or association of which it is a member.

8. Each broker-dealer shall notify the Department in writing at least ten (10) days prior to opening and not more than ten (10) days after closing in this state any branch office as defined in R.I. Gen. Laws § 7-11-206(b). The notification shall include such information as the Department may request.

9. Each investment adviser shall within ninety days after its fiscal year end prepare a balance sheet in accordance with generally accepted accounting principles and retain a copy of that balance sheet for a period of not less than five years unless such retention requirement would be in violation of 15 U.S.C. § 80b-18a(b). At any time within that period, such investment adviser shall make available, within seventy-two hours of any verbal or written request of the Director, a copy of said balance sheet. Investment advisers who retain custody of any client's funds or securities must prepare and retain as above an audited balance sheet and, within seventy-two hours, upon the verbal or written request of the Director, make said audited balance sheet available.

10. Each investment adviser shall file with the Department:

a. A copy of any complaint related to its business, transactions, or operations naming the investment adviser or any of its partners, officers or investment adviser representatives as defendants in any civil or criminal proceeding, or in any administrative or disciplinary proceeding by any public or private regulatory agency, within twenty (20) days of the date the complaint is served on the investment adviser;

b. A copy of any answer or reply to the complaint filed by the investment adviser within ten (10) days of the answer or reply is filed; and

c. A copy of any decision, order or sanction made with respect to any such proceeding within twenty (20) days of the date the decision, order or sanction is rendered.

11. Each investment adviser shall file with the director a notice of transfer of control or change of name within thirty (30) days after the date on which the transfer of control or change of name occurs.

12. Except as provided in §§ 2.6(10) and (11) of this Part, all material changes in the information included in an investment adviser's most recent application for license shall be set forth in an amendment to form ADV filed with the Department within the time prescribed for filings such amendments with the SEC or for advisers who are not registered under the Investment Advisers Act of 1940, thirty (30) days after the change occurs.

230 R.I. Code R. 230-RICR-50-05-2.6