17839481, 69W-600.0012 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 17839481

Notice of Proposed Rule

Department:

DEPARTMENT OF FINANCIAL SERVICES

Division:

Securities

Chapter:

REGISTRATION OF DEALERS, INVESTMENT ADVISERS, ASSOCIATED PERSONS

Overview

RULE:

69W-600.0012	Application for Registration as a Dealer (Non-FINRA)
69W-600.0013	Application for Registration as an Issuer/Dealer (Repealed)
69W-600.0131	Prohibited Business Practices for Investment Advisers and Their Associated Persons
69W-600.014	Books and Records Requirements

PURPOSE:

The Office proposes to amend Rules 69W-600.012, .013, .0131, and .014, F.A.C., to update references to repealed rules. Additionally, the Office proposes to amend Rule 69W-600.014, F.A.C., in order to amend recordkeeping requirements for investment advisers and their associated persons, to add a requirement for investment advisers to maintain a copy of each invoice the investment adviser sends to its clients each time an advisory fee is deducted from clients’ accounts; remove superfluous rule language; and add a requirement for investment advisers and associated persons to preserve for the life of the client’s account, and not less than 5 years after the closing of the client’s account, a copy of investment advisory agreements and the written information about each investment advisory client that is the basis for making any recommendation or providing any investment advice to such client.  Lastly, the Office proposes to amend Rule 69W-600.0131, F.A.C., in order to add “charging a customer an advisory fee greater than the amount authorized in the written investment advisory contract between the customer and the investment advisor” as a prohibited business practice for investment advisers and their associated persons. This amendment will give the Office enforcement authority over advisers who are over-charging customers.

SUMMARY:

The Office proposes to amend Rules 69W-600.012, .013, .0131, and .014, F.A.C., to update references to repealed rules. Additionally, the Office proposes to amend Rule 69W-600.014, F.A.C., to remove unnecessary rule language and to add recordkeeping retention requirements for investment advisers and associated persons; and Rule 69W-600.0131, F.A.C., to add charging a customer an advisory fee greater than the amount authorized in a written investment advisory contract as a prohibited business practice for investment advisers and their associated persons.

RULEMAKING AUTHORITY:

517.03(1), 517.121(1), 517.1215, 517.1217 FS.

LAW:

517.121, 517.301(1), 517.081, 517.1217, 517.161(1), 517.12(4), 517.1215 FS.

PRINT PUBLISH DATE:

8/4/2016 Vol. 42/151

COMMENTS:

From 8/4/2016 To 8/25/2016 (21 Days)
The public comment period for this notice has already expired.

REFERENCE MATERIALS:

No reference(s).

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