157836, 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: 157836

Notice of Proposed Rule

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

PURPOSE:

Section 517.1215(1), Florida Statutes, requires the Commission to specify by rule requirements for investment advisers deemed to have custody of client funds. The statute requires that the following areas be addressed: (a) notification of custody of, maintenance of, and safeguards for client funds; (b) communications with clients and independent representatives; (c) requirements for investment advisers who have custody of pooled investments; and (d) exceptions to the custody requirements. Section 517.1215(2), F.S., requires the Commission to prescribe rules of conduct and prohibited business practices for investment advisers and their associated persons. To implement the foregoing statutory requirements, the Commission is creating a new rule section, Rule 69W-600.0132, and amending existing Rules 69W-600.0131 and 69W-600.014, F.A.C. Rule 69W-600.014, F.A.C., is also being amended to update book and records requirements for dealers, branch offices, and associated persons. Rules 69W-600.0131 and 69W-600.014 are being amended to update references to applicable SEC and self-regulatory rules adopted by reference.

SUMMARY:

Rule 69W-600.0132, F.A.C., is based on the model rules of the North American Securities Administrators Association, Inc., that establish uniform custody rules to be adopted by the states for state covered investment advisers. State covered investment advisers who fail to comply with the custody rules set forth in Rule 69W-600.0132, F.A.C., are committing a prohibited business practice.

RULEMAKING AUTHORITY:

517.03(1) FS., 517.121(1) FS., 517.1215 FS.

LAW:

517.12(4) FS., 517.121(1) FS., 517.1215 FS., 517.161(1) FS.

PRINT PUBLISH DATE:

2/24/2006 Vol. 32/08

COMMENTS:

From 2/24/2006 To 3/17/2006 (21 Days)
The public comment period for this notice has already expired.

REFERENCE MATERIALS:

No reference(s).

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