Compilation of Rules and Regulations of the State of Georgia › Department 590 - RULES OF OFFICE OF SECRETARY OF STATE › Chapter 590-4 - COMMISSIONER OF SECURITIES › Subject 590-4-5 - BROKER-DEALERS AND AGENTS › Rule 590-4-5-.02 - Examination

Current through Rules and Regulations filed through June 27, 2024
(1)
Broker-dealer
. Unless specifically exempt as
				hereinafter provided, before a broker-dealer applicant will be considered
				eligible for registration, the broker-dealer examinations in the form and
				content prescribed or approved by the Commissioner must be passed, to the
				extent required by this Rule, by every principal as defined by federal law,
				rule, or regulation of a broker-dealer in order to test the principal's
				knowledge of the securities business, state and federal securities laws, and
				the responsibilities of a supervisor in the securities business.
(2)
Examinations
				accepted
. The Commissioner recognizes the following general
				examinations administered by FINRA, and an applicant applying to be registered
				as a broker-dealer shall provide proof to the Commissioner that its principals
				have passed:
(a) The Series 63 Uniform
				Securities Agent State Law Examination; and
(b) One of the following examinations:
1. Series 4 Registered Options Principal
				Examination;
2. Series 12 Branch
				Managers Examination;
3. Series 23
				General Securities Principal Qualification Examination Sales Supervisor
				Module;
4. Series 24 General
				Principal Examination;
5. Series 26
				Investment Company Products/Variable Contracts Principal Examination;
6. Series 27 Financial and Operations
				Principal Examination;
7. Series 39
				Direct Participation Programs Principal Examination; or
8. Series 53 Municipal Securities Principal
				Examination.
(c) The
				Commissioner shall establish or approve the standards for a minimum acceptable
				grade in determining each applicant's qualification for registration under this
				provision.
(d) Upon failure to
				receive a minimum passing grade, the principal of the broker-dealer applicant
				may retake the examination on the next date available. A second failure or
				failure to take or retake the examination within a thirty (30)-day period from
				the date the broker-dealer application was filed, shall be grounds for denial
				of the broker-dealer application and an order to that effect may be entered by
				the Commissioner. The broker-dealer applicant shall be considered ineligible
				for licensing during a period of three (3) months from the date of denial of
				the broker-dealer application by the Commissioner, at which time a new
				broker-dealer application may be filed and its eligibility reexamined. The
				original filing fee shall not be refunded nor applied to a subsequent
				application for registration under this provision. However, the broker-dealer
				application shall not be denied if:
1. The
				broker-dealer applicant is qualified;
2. The broker-dealer applicant meets the
				requirements of subsection (2)(e); and
3. The principal of that applicant who fails
				the examination qualifies for an exemption under subsection (2)(g).
(e) The following are the
				examination requirements for principals of a broker-dealer:
1. In the case of a partnership, a
				corporation, or another association, including, but not limited to a limited
				liability company, at least two (2) partners, officers, directors, or persons
				or members occupying a similar position must satisfy the examination
				requirement.
2. If the
				broker-dealer maintains no branch offices and employs no more than ten (10)
				agents who have contact with the public, only one (1) of those persons must
				satisfy the examination requirement.
(f) An application shall be deemed incomplete
				until there is a showing of compliance with the examination requirements or an
				exemption from those requirements.
(g) The examination requirements may be
				waived by a proper showing or certification that the principal, prior to the
				broker-dealer making application with the Commissioner, has:
1. Taken an examination in the form and
				content approved by the Commissioner within the preceding two (2) years, and
				passed the examination with the minimum acceptable passing grade for
				broker-dealer applicants; or
2.
				Taken an examination in the form and content prescribed or approved by the
				Commissioner, attained an acceptable passing grade, and thereafter, remained
				continuously in the securities business, duly licensed by another
				state.