15277032, 69W-600.0131 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 15277032

Notice of Development of Rulemaking

Department:

DEPARTMENT OF FINANCIAL SERVICES

Division:

Securities

Chapter:

REGISTRATION OF DEALERS, INVESTMENT ADVISERS, ASSOCIATED PERSONS

Overview

RULE:

69W-600.0131	Prohibited Business Practices for Investment Advisers and Their Associated Persons
69W-600.0132	Custody Requirements for Investment Advisers
69W-600.014	Books and Records Requirements
69W-600.015	Financial Reporting Requirements - Statement of Financial Condition - Dealers and Investment Advisers (Repealed)
69W-600.0151	Net Capital and Financial Reporting Requirements for Dealers
69W-600.016	Net Capital Requirements for Dealers and Investment Advisers (Repealed)
69W-600.0161	Net Capital and Financial Reporting Requirements for Investment Advisers

PURPOSE:

The Office proposes to amend rules 69W-600.0131, .0132, and .014; repeal rules 69W-600.015 and .016, and create new rules 69W-600.0151 and .0161. Rule 600.0131 is proposed to be amended to require Florida state registered investment advisers to comply with SEC Rules 204-1 and 206(4)-7, which currently require federal covered advisers to, among other things, annually file amendments to their registration form (Form ADV) and adopt and implement compliance procedures and practices, respectively. The Office proposes to amend Rule 600.0132 relating to custody requirements for investment advisers to conform the current rule more closely with the NASAA model rule, including adding a requirement for investment advisers with custody who do not meet certain exceptions to have an annual independent verification of client funds and securities.  Rule 69W-600.014 is proposed for amendment to add certain recordkeeping requirements for investment advisers who inadvertently hold or obtain client securities or funds, in accordance with NASAA model rules.  Finally, the Office proposes to repeal current financial reporting rules 69W-300.002 and 69W-600.015 and net capital rule 69W-600.016, to be replaced by proposed new consolidated net capital/financial reporting rules in 69W-600.0151 and 69W-600.0161 for dealers/issuer-dealers and investment advisers, respectively. The purpose and effect of these changes are to remove outdated requirements, implement clearer requirements as to financial reporting and calculation of net capital, and improve rule organization by consolidating rules on the same subject while creating separate rules by registration type.

SUBJECT:

Securities Regulation

RULEMAKING AUTHORITY:

517.03(1), 517.12(9), 517.121, 517.1215 FS

LAW:

517.12, 517.121, 517.1215, 517.161(1) FS

PRINT PUBLISH DATE:

11/24/2014 Vol. 40/228

RELATED STATUTES
AND LAWS:

517.03(1), 517.12(9), 517.121, 517.1215 FS, 517.12, 517.121, 517.1215, 517.161(1) FS

OVERSIGHT COMMITTEE:

Joint Administrative Procedures Committee
Florida Administrative Law Central Online Network (F.A.L.C.O.N.)

RELATED COURT CASES:

Division of Administrative Hearings

FEDERAL eRULEMAKING
WEB PORTAL:

Regulations.gov

HOW TO LINK TO
THIS NOTICE:

http://flrules.org/gateway/ruleno.asp?id=69W-600.0131&PDate=11/24/2014&Section=1

REFERENCE MATERIALS:

No reference(s).

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