reglab/statecodes huggingface dataset:
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 3 - REGISTRATION OF SECURITIES › E - Small Company Offerings Registration › Section 16-39-350 - Purpose

Current through June, 2024
The purpose of sections
					 16-39-350 to
					 16-39-355 is to encourage
					 investment in small businesses, and provide a method of registration for small
					 companies offering securities to the public. The commissioner recognizes that
					 small issuers raising small amounts of money face special problems not faced by
					 issuers raising larger amounts, and that standards appropriate to registrations
					 of larger offerings may become unduly burdensome when applied to registrations
					 of small offerings. The registration method offered by sections
					 16-39-350 to
					 16-39-355 is intended to reduce
					 the costs and burdens of raising capital for small business and to maximize the
					 amount of offering proceeds available to the issuer for investment in the
					 business, without sacrificing investor protection. Issuers eligible for this
					 method of registration shall use the SCOR registration form as the disclosure
					 document for the offering.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 3 - REGISTRATION OF SECURITIES › E - Small Company Offerings Registration › Section 16-39-351 - Application of this chapter to SCOR registrations

Current through June, 2024
(a) The
				  provisions of subchapter
				  3 shall apply to SCOR registrations;
				  provided that section
				  16-39-311 relating to financial
				  reports, and section
				  16-39-330 relating to SEC
				  effective dates shall not apply.
(b) The commissioner reserves the right to
				  apply this chapter (or any provision therein) to offerings under sections
				  16-39-350 to
				  16-39-355 if the commissioner
				  determines that such application, even in the small business offering context,
				  is necessary for the protection of investors.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 3 - REGISTRATION OF SECURITIES › E - Small Company Offerings Registration › Section 16-39-352 - Availability

Current through June, 2024
(a) SCOR is intended to allow small companies
				  to conduct limited offerings of securities. SCOR uses a simplified offering
				  format designed to provide adequate disclosure to investors concerning the
				  issuer, the security offered, and the offering itself. Certain issuers may not
				  be able to make adequate disclosure using the SCOR format and will, therefore,
				  be unable to utilize SCOR.
(b) The
				  commissioner finds that SCOR is generally unsuitable for the following issuers
				  and programs:
(1) Holding companies, and
				  companies whose principal purpose is owning stock in or supervising the
				  management of other companies;
(2)
				  Portfolio companies, including but not limited to real estate investment trusts
				  as defined in NASAA's 'Statement of Policy Regarding Real Estate Investment
				  Trusts" referenced in section
				  16-39-315(11);
(3) Issuers with complex capital
				  structures;
(4) Commodity
				  pools;
(5) Equipment leasing
				  programs;
(6) A "blind pool" or
				  other offering for which the specific business to be engaged in or property to
				  be acquired by the issuer cannot be specified; and
(7) Real estate programs.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 3 - REGISTRATION OF SECURITIES › E - Small Company Offerings Registration › Section 16-39-354 - Agreement by registrant on splits and dividends of stock or ownership interests

Current through June, 2024
By filing for SCOR registration in this State, the
					 registrant agrees that it shall not split its common stock or common ownership
					 interests, or declare a stock or ownership interest dividend, for two years
					 after the effective date of the registration.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 3 - REGISTRATION OF SECURITIES › E - Small Company Offerings Registration › Section 16-39-355 - Documents to be filed for SCOR registration

Current through June, 2024
In addition to filing a properly completed SCOR form, an
					 applicant for SCOR registration shall file the following exhibits with the
					 commissioner:
(1) Form of selling
				  agency agreement;
(2) The issuer's
				  articles of incorporation, articles of organization, or other charter
				  documents, and all amendments thereto;
(3) The issuer's bylaws or operating
				  agreement, as amended to date;
(4)
				  Copies of any resolutions by directors setting forth terms and provisions of
				  capital stock to be issued or by managers or managing members setting forth
				  terms and provisions of capital ownership interest to be issued;
(5) Any indenture, form of note, or other
				  contractual provision containing terms of notes or other debt, or of options,
				  warrants, or rights to be offered;
(6) Specimen of security or ownership
				  interest certificate to be offered (including any legend restricting
				  resale);
(7) Consent to service of
				  process accompanied by appropriate corporate or company resolution;
(8) Copy of all advertising or other
				  materials directed to or to be provided to investors in the offering;
(9) Form of escrow agreement for the escrow
				  of proceeds;
(10) Consent to
				  inclusion in the disclosure document of the accountant's report;
(11) Consent to inclusion in the disclosure
				  document of any tax adviser's opinion or description of tax
				  consequences;
(12) Consent to
				  inclusion in the disclosure document of any evaluation of litigation or
				  administrative action by counsel;
(13) Form of any subscription agreement for
				  the purchase of securities in this offering;
(14) Opinion of an attorney licensed to
				  practice in a state or territory of the United States that the securities to be
				  sold in the offering have been duly authorized and when issued upon payment of
				  the offering price shall be legally and validly issued, fully paid, and
				  nonassessable and binding on the issuer in accordance with their terms;
				  and
(15) Agreement by the
				  registrant that the registrant shall not split its common stock or common
				  ownership interests, or declare a stock or ownership interest dividend, for two
				  years after the effectiveness of the registration.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › A - Broker-Dealers › Section 16-39-401 - Registration; generally

Current through June, 2024
A person may be registered under chapter
					 485A, HRS, and this chapter if the
					 commissioner finds that the applicant is qualified, has sufficient training and
					 experience, is of good repute, and otherwise satisfies the requirements of
					 chapter 485A, HRS, and
					 this chapter.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › A - Broker-Dealers › Section 16-39-402 - Eligibility requirements

Current through June, 2024
(a) An applicant, if
				  a natural person, shall have attained the age of eighteen years.
(b) A broker-dealer that is a foreign
				  business entity that intends to establish a branch office in this State shall,
				  in addition to the requirements under this chapter and chapter
				  485A, HRS, comply with the
				  requirements of this State's business registration laws, as
				  applicable.
(c) An applicant,
				  except an applicant that is registered as a broker or dealer under the
				  Securities Exchange Act, shall have a minimum net capital of not less than
				  $5,000 and comply with the requirements of section
				  16-39-404(b).
(d) A partner or an officer of a registered
				  broker-dealer or issuer may engage in the capacity of an agent only if that
				  person has been duly registered as provided under this chapter and chapter
				  485A, HRS.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › A - Broker-Dealers › Section 16-39-403 - Application

Current through June, 2024
(a) An application for registration of a
				  broker-dealer shall be filed on Form BD, which may be filed with the
				  commissioner directly or through the CRD. If Form BD is filed with the
				  commissioner directly, it shall be originally executed.
(b) The application shall be filed together
				  with the following:
(1) The application fee
				  specified in section 16-39-103;
(2) Evidence of compliance with all
				  applicable requirements of section
				  16-39-402; and
(3) Financial statements consisting of
				  either:
(A) A balance sheet as of a date
				  within thirty days of filing, verified by a duly authorized officer, or the
				  equivalent, of the applicant and notarized, or if the applicant has been
				  engaged in business one year or more preceding, an audited financial statement
				  as of the last fiscal year, together with a balance sheet as of a date within
				  thirty calendar days of filing, verified by a duly authorized officer, or the
				  equivalent, of the applicant and notarized; or
(B) If the applicant is registered under the
				  Securities Exchange Act, the applicant shall include with its application a
				  copy of its most recent annual financial statement.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › A - Broker-Dealers › Section 16-39-404 - Financial requirements

Current through June, 2024
(a) Every registered
				  broker-dealer shall file an annual report of condition within ninety calendar
				  days following the end of the calendar or fiscal year adopted as follows:
(1) Broker-dealers registered under the
				  Securities Exchange Act shall file a copy of the annual financial report filed
				  with the SEC; and
(2) All other
				  broker-dealers shall file audited financial statements that evidences the
				  broker-dealer's compliance with the requirements of subsection (b).
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › A - Broker-Dealers › Section 16-39-405 - Sales of securities at financial institutions

Current through June, 2024
No broker-dealer shall conduct brokerdealer services on the
					 premises of a financial institution where retail deposits are taken unless the
					 broker-dealer complies initially and continuously with the following
					 requirements:
(1) Setting. Wherever
				  practical, broker-dealer services shall be conducted in a physical location
				  distinct from the area in which the financial institution's retail deposits are
				  taken. In those situations where there is insufficient space to allow separate
				  areas, the broker-dealer has a heightened responsibility to distinguish its
				  services from those of the financial institution. In all situations, the
				  broker-dealer shall identify its services in a manner that clearly
				  distinguishes those services from the financial institution's retail
				  deposit-taking activities. The broker-dealer's name shall be clearly displayed
				  in the area in which the broker-dealer conducts its services.
(2) Networking arrangements and program
				  management. Networking arrangements shall be governed by a written agreement
				  that sets forth the responsibilities of the parties and the compensation
				  arrangements. Networking arrangements shall provide that supervisory personnel
				  of the broker-dealer and representatives of state securities authorities, shall
				  be permitted access to the financial institution's premises where the
				  broker-dealer conducts broker-dealer services in order to inspect the books and
				  records and other relevant information maintained by the broker-dealer with
				  respect to its broker-dealer services. Management of the broker-dealer shall be
				  responsible for ensuring that the networking arrangement clearly outlines the
				  duties and responsibilities of all parties, including those of the financial
				  institution's personnel.
(3)
				  Customer disclosure and written acknowledgment.
(A) At or prior to the time that a customer's
				  securities brokerage account is opened by a broker-dealer on the premises of a
				  financial institution where retail deposits are taken, the broker-dealer shall:
(i) Disclose, orally and in writing, that the
				  securities purchased or sold in a transaction with the broker-dealer are: not
				  insured by the FDIC; not deposits or other obligations of the financial
				  institution and are not guaranteed by the financial institution; and subject to
				  investment risks, including possible loss of the principal invested;
				  and
(ii) Make reasonable efforts to
				  obtain from each customer during the account opening process a written
				  acknowledgment of the disclosures required by clause (i).
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › A - Broker-Dealers › Section 16-39-406 - Books and records

Current through June, 2024
Every brokerdealer registered or required to be registered
					 under chapter 485A, HRS, and
					 this chapter shall prepare and maintain the books and records as described in
					 the Securities Exchange Act, 17 CFR sections 240.17a-3 and
					 240.17a-4.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › A - Broker-Dealers › Section 16-39-407 - Post-effective requirements; registration of successor broker-dealer

Current through June, 2024
(a) Every registrant shall promptly notify
				  the commissioner of any material change in any information, exhibits, or
				  schedules submitted, or circumstances disclosed in its last prior application,
				  by filing a correcting amendment at the time of occurrence or discovery of the
				  changes. Changes that shall be reported include but are not limited to the
				  following:
(1) Change in firm name, ownership,
				  management, or control of a broker-dealer;
(2) A change in any of its partners,
				  officers, or persons in similar positions;
(3) Change in its business address, or the
				  creation or termination of a branch office in this State;
(4) Change in type of business entity,
				  general plan, or character of broker-dealer's business, method of operation or
				  type of securities in which it is dealing or trading;
(5) Material adverse change in financial
				  condition, insolvency, dissolution or liquidation, or impairment of working
				  capital, or noncompliance with the minimum net capital requirements provided in
				  sections 16-39-402(c) and
				  16-39-404(b);
(6) Termination of business or discontinuance
				  of those activities as a broker-dealer or agent; and
(7) The commencement of any proceeding or
				  action that is required to be disclosed pursuant to the disciplinary questions
				  on Form BD, including but not limited to, filing of a criminal charge or civil
				  action against a registrant or a partner or officer in which a fraudulent,
				  dishonest, or unethical act is alleged, or a violation of a securities law or
				  any aspect of the securities business is involved, entry of a court or
				  administrative order or proceeding against a registrant to deny, suspend, or
				  revoke a registration, or threatening to do so, or to enjoin it from engaging
				  in or continuing any conduct or practice in the securities business, or to
				  impose a fine, suspension, or expulsion from FINRA.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › A - Broker-Dealers › Section 16-39-408 - Expiration, renewal, termination of registration

Current through June, 2024
(a) All
				  registrations shall automatically expire on December 31 of each year (unless
				  sooner terminated in accordance with chapter
				  485A, HRS, and this chapter) and
				  shall be renewed as provided in this section. A broker-dealer or issuer shall
				  be responsible for renewing the registration of its agents at the time the
				  broker-dealer or issuer renews its registration. A member of FINRA shall renew
				  its registration with the commissioner by filing the renewal documents and fees
				  through the CRD. All other broker-dealers and issuers shall renew their
				  registration by annually filing, not earlier than November 1 or later than
				  December 1 of the current registration year, an originally executed copy of
				  page one of Form BD together with:
(1) All
				  amendments to Form BD that have previously not been filed with the
				  commissioner;
(2) A list of all
				  agents of the broker-dealer that are renewing their registrations for the
				  upcoming calendar year;
(3) A copy
				  of all amendments to Form U-4 of all such agents if such amendments have not
				  been previously filed with the commissioner;
(4) A Form U-5 on each registered agent of
				  the broker-dealer who is not renewing its agent registration; and
(5) A renewal fee as set forth in section
				  16-39103 for the broker-dealer
				  and for each agent renewing a registration.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › B - Agents › Section 16-39-420 - Registration; generally

Current through June, 2024
A person may be registered as a securities agent under
					 chapter 485A, HRS, and
					 this chapter if the commissioner finds that the person is of good repute and
					 otherwise satisfies the requirements of chapter
					 485A, HRS, and this
					 chapter.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › B - Agents › Section 16-39-421 - Eligibility requirements

Current through June, 2024
(a) An applicant, if
				  a natural person, shall have attained the age of eighteen years.
(b) A broker-dealer or issuer shall submit an
				  application with the commissioner to register an agent.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › B - Agents › Section 16-39-422 - Application

Current through June, 2024
(a) An application for registration of an
				  agent shall be filed on Form U-4, which shall be filed with the commissioner
				  directly or through the CRD. If the broker-dealer is not registered through the
				  CRD, an originally executed Form U-4 and fees shall be filed with the
				  commissioner directly.
(b) The
				  application shall be filed together with the following:
(1) The application fee set forth in section
				  16-39-103; and
(2) Evidence of compliance with section
				  16-39-421.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › B - Agents › Section 16-39-423 - Examination requirements

Current through June, 2024
(a) Unless
				  specifically exempt, every applicant for registration as a securities agent
				  shall be required to pass a written examination that tests the applicant's
				  knowledge of the securities business.
(b) The examination requirement of subsection
				  (a) shall be deemed satisfied upon evidence to the commissioner that the
				  applicant has passed an examination administered by FINRA that is appropriate
				  for the type of business that will be conducted by the agent and FINRA's
				  Uniform Securities Agent State Law Examination.
(c) An applicant who has not been registered
				  in any jurisdiction for a period of two consecutive years immediately preceding
				  the date of the application shall be required to comply with the examination
				  requirements of this chapter.
(d)
				  Notwithstanding any other provision to the contrary, the commissioner may by
				  order waive the examination requirement if the commissioner determines that the
				  examination is not necessary or appropriate in the public interest or for the
				  protection of investors.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › B - Agents › Section 16-39-424 - Post-effective requirements

Current through June, 2024
(a) Every applicant
				  and registrant shall promptly file with the commissioner any and all amendments
				  necessary to keep the information previously reported on the applicant's or
				  registrant's Form U-4 current and accurate. If the Form U-4 being amended was
				  filed with the commissioner through the CRD, any amendment to the form may also
				  be filed through the CRD.
(b) Upon
				  the receipt of an amendment, the commissioner may request additional
				  information from the applicant or registrant to determine whether the
				  applicant's application should be denied or the registrant's registration
				  should be suspended or revoked.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › B - Agents › Section 16-39-425 - Expiration, renewal, termination of registration

Current through June, 2024
(a) All
				  registrations shall automatically expire on December 31 of each year (unless
				  sooner terminated in accordance with chapter
				  485A, HRS, and this chapter and
				  shall be renewed as provided in this section.
(b) A broker-dealer or issuer shall be
				  responsible for renewing the registration of its agents at the time the
				  broker-dealer or issuer renews its registration.
(c) An application for renewal registration
				  shall not be considered filed until the broker-dealer or issuer submits the
				  following:
(1) The renewal fee set forth in
				  section 16-39-103; and
(2) A copy of all amendments to Form U-4 of
				  all such agents if the amendments have not been previously filed with the
				  commissioner.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › C - Investment Advisers › Section 16-39-430 - Registration; generally

Current through June, 2024
(a) A person may be
				  registered as an investment adviser under chapter
				  485A, HRS, and this chapter if the
				  commissioner finds that the applicant is of good repute and otherwise satisfies
				  the requirements of chapter
				  485A, HRS, and this
				  chapter.
(b) All services of an
				  investment adviser shall be made pursuant to a written investment advisory
				  contract and shall be subject to the disclosure requirements of section
				  16-39-438.
(c) Designation. The commissioner hereby
				  designates the IARD to receive and store filings, and collect related fees from
				  investment advisers and investment adviser representatives on behalf of the
				  commissioner.
(d) Use of the IARD.
				  Except as otherwise provided below, all investment adviser and investment
				  adviser representative applications, amendments, reports, notices, related
				  filings, and fees required to be filed with the commissioner pursuant to
				  chapter 485A, HRS, and
				  this chapter, shall be filed electronically with and transmitted to the IARD.
				  The following additional conditions relate to these electronic filings:
(1) Electronic signature. When a signature or
				  signatures are required by the particular instructions of any filing to be made
				  through the IARD, a duly authorized officer, or the equivalent, of the
				  applicant or the applicant him or herself, as required, shall affix his or her
				  electronic signature to the filing by typing his or her name in the appropriate
				  fields and submitting the filing to the IARD. Submission of a filing in this
				  manner shall constitute irrefutable evidence of legal signature by any
				  individuals whose names are typed on the filing;
(2) When filed. Solely for purposes of a
				  filing made through the IARD, a document is considered filed with the
				  commissioner when all fees are received and the filing is accepted by the IARD
				  on behalf of the State.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › C - Investment Advisers › Section 16-39-431 - Notice filing for federal covered investment advisers

Current through June, 2024
(a)
				  A federal covered investment adviser may transact business in this State upon
				  submitting to the commissioner a notice filing and notice filing fee as set
				  forth in section 16-39-103, unless otherwise
				  exempt pursuant to section
				  485A-405, HRS. The notice filing
				  and notice filing fee may be filed with the commissioner through the
				  IARD.
(b) The notice filing shall
				  consist of the federal covered investment adviser's current Form ADV on file
				  with the SEC. The notice filing shall be effective upon receipt and shall
				  expire December 31 of each year. A notice filing may be renewed prior to
				  December 31 by either:
(1) Filing with the
				  commissioner:
(A) A copy of page one of the
				  federal covered investment adviser's most recent Form ADV;
(B) A copy of Item 2 of Part 1A of the
				  federal covered investment adviser's most recent Form ADV;
(C) Any amendments to Form ADV that have not
				  been previously filed with the commissioner;
(D) A list containing the name and social
				  security number or the IARD number of each investment adviser representative of
				  the adviser who is renewing its registration for the coming notice filing
				  period together with any amendments to the investment adviser representative's
				  Form U-4 that have not been previously filed with the commissioner;
(E) A Form U-5 for each registered investment
				  adviser representative who is not renewing its registration for the upcoming
				  notice filing period; and
(F) A
				  renewal fee as specified in section
				  16-39-103, to cover the renewal of
				  the federal covered investment adviser's notice filing and the registration of
				  each of its representatives who is renewing its registration; or
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › C - Investment Advisers › Section 16-39-432 - Eligibility requirements

Current through June, 2024
(a) An applicant, if
				  a natural person, shall have attained the age of eighteen years.
(b) A partner, officer, manager,
				  representative, or employee of a registered investment adviser may render
				  investment advisory services only if the person meets all the requirements of
				  and has been duly registered as an investment adviser or investment adviser
				  representative, as provided by section
				  485A-404, HRS, and this
				  chapter.
(c) A corporation,
				  partnership, limited liability company, sole proprietorship, or other
				  unincorporated association whose partners, officers, managers, representatives,
				  or employees render investment advisory services as defined in section
				  485A-403, HRS, shall comply with
				  registration procedures as provided by section
				  485A-406, HRS, and this chapter,
				  unless otherwise exempted.
(d) An
				  individual applying to be registered as an investment adviser shall take and
				  pass a written examination, prescribed by the commissioner, under section
				  16-39-438.
(e) An applicant shall have at all times, the
				  minimum net worth, as defined in section
				  16-39-433. An applicant that
				  maintains its principal place of business in a state other than this State
				  shall not be required to comply with the minimum net worth requirement of this
				  section; provided that the applicant is registered in the state where it
				  maintains its principal place of business and is in compliance with that
				  state's net capital or net worth requirements, if any.
(f) Except as otherwise expressly provided in
				  this subchapter, an applicant who has custody or discretionary authority over
				  client funds or securities shall obtain a surety bond as set forth in section
				  16-39-434.
(g) A foreign corporation, partnership, or
				  limited liability company intending to establish a branch office in this State
				  shall comply with the requirements of this State's business registration laws,
				  as applicable.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › C - Investment Advisers › Section 16-39-433 - Financial requirements

Current through June, 2024
(a) An investment
				  adviser registered or required to be registered, who does not have custody of
				  client funds or securities, and who does not have discretionary authority over
				  client funds or securities, shall maintain a minimum net worth of $5,000 at all
				  times.
(b) An investment adviser
				  registered or required to be registered, who has custody of client funds or
				  securities shall maintain a minimum net worth of $35,000 at all times except:
(1) Investment advisers that have custody
				  solely due to their authority to deduct fees from client accounts and comply
				  with the terms described in section
				  16-39-436 and related books and
				  records shall only be required to maintain a minimum net worth of $5,000 at all
				  times; or
(2) Investment advisers
				  to pooled investment vehicles that have custody solely due to the capacity in
				  which they act in advising pooled investment vehicles and comply with the terms
				  described in section
				  16-39-436 and related books and
				  records shall only be required to maintain a minimum net worth of $5,000 at all
				  times.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › C - Investment Advisers › Section 16-39-434 - Bonding requirements for certain investment advisers

Current through June, 2024
(a)
				  Any investment adviser bond required under this chapter and chapter
				  485A, HRS, shall be issued by a
				  surety company qualified to do business in this State with the State as
				  obligee, and shall be subject to the claims of all clients of such investment
				  adviser regardless of the client's state of residence.
(1) Every investment adviser registered or
				  required to be registered under this chapter and chapter
				  485A, HRS, having custody of or
				  discretionary authority over client funds or securities shall be bonded in the
				  amount of $50,000.
(2) Every
				  investment adviser registered or required to be registered under this chapter
				  and chapter 485A, HRS, who has custody of or
				  discretionary authority over client funds or securities and who does not meet
				  the minimum net worth requirements prescribed in section
				  16-39-433 shall be bonded in the
				  amount of the net worth deficiency rounded up to the nearest $5,000.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › C - Investment Advisers › Section 16-39-435 - Application

Current through June, 2024
(a) Except as permitted by section
				  16-39-430(f), an application for registration shall be filed on Form ADV
				  through the IARD and shall contain the information requested therein concerning
				  the applicant's identification, qualification, business association, history,
				  experience, and financial condition.
(b) The application shall be filed together
				  with the following:
(1) The application fee
				  set forth in section 16-39-103;
(2)
				  Evidence of compliance with all applicable requirements of section
				  16-39-432(d) to
				  (g);
(3) Financial statements consisting of
				  either:
(A) A balance sheet as of a date
				  within thirty calendar days of filing, verified by a duly authorized officer,
				  or the equivalent, of the applicant and notarized, or if the applicant has been
				  engaged in business one year or more preceding, an audited financial statement
				  as of the last fiscal year, together with a balance sheet as of a date within
				  thirty calendar days of filing, verified by a duly authorized officer, or the
				  equivalent, of the applicant and notarized. However, if the applicant does not
				  have custody or discretionary authority over client funds, the adviser need
				  only file financial statements verified by a duly authorized officer, or the
				  equivalent, of the applicant and notarized; or
(B) If the investment adviser maintains its
				  principal place of business in a state other than this State, and if the
				  investment adviser is registered in the other state and is in compliance with
				  the other state's financial reporting requirements, if any, a copy of the
				  adviser's most recent financial statement filed with the state where the
				  adviser maintains its principal place of business; and
(4) Proof that the applicant, if an
				  individual, has complied with the examination requirement provided in section
				  16-39-438, or otherwise qualifies
				  for exemption from the examination as specified in section 16-39-438.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › C - Investment Advisers › Section 16-39-437 - Annual financial reporting requirements

Current through June, 2024
(a) Every
				  registered investment adviser shall file an annual report within ninety
				  calendar days following the end of the investment adviser's fiscal year as
				  follows:
(1) An investment adviser that
				  maintains its principal place of business in this State shall file audited
				  financial statements; however, if an investment adviser does not have custody
				  or discretionary authority over client funds, the investment adviser shall file
				  financial statements verified by a duly authorized officer, or the equivalent,
				  of the investment adviser and notarized. Any statement that does not adequately
				  reflect the applicant's true financial picture shall not be accepted;
				  and
(2) An investment adviser that
				  maintains its principal place of business in a state other than this State
				  shall file with the commissioner a copy of the most recent financial report or
				  statement, if any, that the investment adviser has filed with the securities
				  commissioner in the state in which it maintains its principal place of
				  business. An investment adviser that maintains its principal place of business
				  in a state other than this State but that is not registered in the state in
				  which it maintains its principal place of business or is not in compliance with
				  that state's financial reporting requirements, if any, shall be required to
				  file with the commissioner financial statements that comply with the
				  requirements of paragraph (1).
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › C - Investment Advisers › Section 16-39-438 - Examination requirements

Current through June, 2024
(a) Examination
				  requirements. Except as otherwise provided in this chapter, an individual
				  applying to be registered as an investment adviser shall provide the
				  commissioner with proof of obtaining a passing examination score or scores as
				  follows:
(1) The Uniform Investment Adviser
				  Law Examination (Series 65 examination); or
(2) The General Securities Representative
				  Examination (Series 7 examination) and the Uniform Combined State Law
				  Examination (Series 66 examination).
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › C - Investment Advisers › Section 16-39-439 - Disclosure statements

Current through June, 2024
Unless waived by the commissioner, every investment
					 adviser that is registered or required to be registered under chapter
					 485A, HRS, and this chapter shall
					 furnish each advisory client and prospective advisory client with a written
					 disclosure statement that complies with the provisions of the Investment
					 Advisers Act,
					 17 CFR section
					 275.204-3, notwithstanding the fact that the
					 investment adviser is not registered or required to be registered under the
					 Investment Advisers Act. The delivery and updating of the disclosure statement
					 required by this section shall be done in accordance with the requirements of
					 Investment Advisers Act,
					 17 CFR section
					 275.204-3.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › C - Investment Advisers › Section 16-39-440 - Post-effective requirements

Current through June, 2024
(a) Every registrant
				  shall promptly notify the commissioner of any material change in any
				  information, exhibits, or schedules submitted, or circumstances disclosed in
				  its last prior Form ADV by filing a correcting amendment on Form ADV. Changes
				  to be reported shall include, but are not limited to, the following:
(1) Change in firm name, ownership,
				  management, or control of an investment adviser;
(2) Change in any of its partners, officers,
				  or persons in similar positions;
(3) Change in its business address, or the
				  creation or termination of a branch office in this State;
(4) Change in type of entity, general plan,
				  or character of the investment adviser's business, method of operation, or type
				  of securities in which it is dealing or trading;
(5) Material adverse change in financial
				  condition, insolvency, dissolution, or liquidation, or impairment of working
				  capital, or noncompliance with the minimum net worth or bond requirements
				  hereinabove provided; and
(6) The
				  filing of any disciplinary proceeding that is required to be disclosed on Form
				  ADV, including but not limited to, a criminal charge or civil action against a
				  registrant or a partner, officer, or employee who acts as an investment adviser
				  in which a fraudulent, dishonest, or unethical act is alleged, or a violation
				  of a securities law or any aspect of the securities business is involved or
				  entry of a court or administrative order or proceeding against a registrant to
				  deny, suspend, or revoke a registration, or threatening to do so, or to enjoin
				  it from engaging in or continuing any conduct or practice in the securities
				  business, or to impose a fine, suspension, or expulsion from FINRA.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › C - Investment Advisers › Section 16-39-441 - Expiration, renewal, termination of registration

Current through June, 2024
(a) All
				  registrations shall automatically expire on December 31 of each year (unless
				  sooner terminated in accordance with chapter
				  485A, HRS, and this chapter) and
				  shall be renewed as provided in this section. An investment adviser shall be
				  responsible for renewing the registration of its investment adviser
				  representatives at the time the investment adviser renews its registration. An
				  investment adviser shall renew its registration with the commissioner by filing
				  the renewal documents and fees through the IARD. The renewal documents shall
				  include:
(1) All amendments to Form ADV and
				  Form U-4 that have not previously been filed with the commissioner;
(2) The renewal fee as set forth in section
				  16-39-103 for the investment
				  adviser and for each investment adviser representative renewing a
				  registration.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › C - Investment Advisers › Section 16-39-442 - Books and records

Current through June, 2024
(a) Every investment
				  adviser registered or required to be registered under chapter
				  485A, HRS, and this chapter shall
				  make and keep true, accurate, and current books and records in compliance with
				  the Investment Advisers Act, 17 CFR section 275.204-2. In
				  addition, investment advisers who have custody, as that term is defined in
				  section 16-39-436, of client funds or
				  securities, shall keep all records and evidence of compliance required by
				  section 16-39-436.
(b) An investment adviser subject to
				  subsection (a), before ceasing to conduct or discontinuing business as an
				  investment adviser shall arrange for and be responsible for the preservation of
				  the books and records required to be maintained and preserved under this
				  section for the remainder of the period specified in this section, and shall
				  notify the commissioner in writing of the exact address where such books and
				  records shall be maintained during such period.
(c) To the extent that the SEC promulgates
				  changes to the rules of the Investment Advisers Act referenced in subsection
				  (a), investment advisers in compliance with such rules as amended shall not be
				  subject to enforcement action by the commissioner for violation of this section
				  to the extent that the violation results solely from the investment adviser's
				  compliance with the amended rule.
(d) Every investment adviser that has its
				  principal place of business in a state other than this State shall be exempt
				  from the requirements of this section; provided the investment adviser is
				  licensed in such state and is in compliance with the state's recordkeeping
				  requirements.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › D - Investment Adviser Representatives › Section 16-39-450 - Registration; generally

Current through June, 2024
A person may be registered as an investment adviser
					 representative under chapter
					 485A, HRS, if the commissioner finds
					 that the applicant is of good repute and otherwise satisfies the requirements
					 of chapter 485A, HRS, and this
					 chapter.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › D - Investment Adviser Representatives › Section 16-39-451 - Eligibility requirements

Current through June, 2024
(a) An applicant, if
				  a natural person, shall have attained the age of eighteen years.
(b) An investment adviser shall submit an
				  application with the commissioner to register an investment adviser
				  representative.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › D - Investment Adviser Representatives › Section 16-39-452 - Application

Current through June, 2024
(a) An application for registration of an
				  investment adviser representative shall be filed on Form U-4 through the
				  IARD.
(b) The application shall be
				  filed together with the following:
(1) The
				  application fee set forth in section
				  16-39-103; and
(2) Evidence of compliance with section
				  16-39-451.
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › D - Investment Adviser Representatives › Section 16-39-453 - Examination requirements

Current through June, 2024
(a) Unless
				  specifically exempt, every applicant for registration as an investment adviser
				  representative shall provide the commissioner with proof of obtaining a passing
				  score or scores on the following examinations:
(1) The Uniform Investment Adviser Law
				  Examination (Series 65 examination); or
(2) The General Securities Representative
				  Examination (Series 7 examination) and the Uniform Combined State Law
				  Examination (Series 66 examination).
Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 39 - SECURITIES › Subchapter 4 - REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES › D - Investment Adviser Representatives › Section 16-39-454 - Post-effective requirements

Current through June, 2024
(a) Every applicant
				  and every registrant shall promptly file with the commissioner any and all
				  amendments necessary to keep the information previously reported on the
				  applicant's or registrant's Form U-4 current and accurate. If the Form U-4
				  being amended was filed with the commissioner through the CRD or IARD, any
				  amendment to the Form U-4 may also be filed through the CRD or IARD.
(b) Upon the receipt of the amendment, the
				  commissioner may request additional information from the applicant or
				  registrant to determine whether the applicant's application should be denied,
				  or the registrant's registration should be suspended or revoked.