reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 191 - Insurance Division › Viatical and Life Settlements › Chapter 48 - Viatical and Life Settlements › Rule 191-48.5 - Contract Requirements

Current through Register Vol. 47, No. 3, July 24, 2024
In order to ensure that viators receive a reasonable return
				  for viaticating an insurance policy when life expectancy is less than 25
				  months, a viatical settlement provider shall pay to a viator a discounted
				  amount of the face value of the policy which amount shall be calculated at
				  least at the following rates:
Minimum Percentage of Face Value Less Outstanding
						  Loans
Insured's Life Expectancy
Received by Viator
Less than 6 months
80%
At least 6 but less than 12 months
70%
At least 12 but less than 18 months
65%
At least 18 but less than 25 months
60%
25 months or more
Cash surrender value of policy
The percentage may be reduced by 5% for viaticating a policy
				  written by an insurer rated less than the highest four categories by A.M. Best,
				  or a comparable rating by another rating agency.
For a viatical settlement in which the viator has a life
				  expectancy of 25 months or more, a viatical settlement provider or broker shall
				  not enter into a viatical settlement contract that provides a payment to the
				  viator that is imreasonable or imjust. As listed above, such payment must at
				  least be equal to the cash surrender value of the policy. In determining
				  whether a payment is unreasonable or unjust, the commissioner may consider,
				  among other factors, the life expectancy of the insured; the applicable rating
				  of the insurance company that issued the subject policy by a rating service
				  generally recognized by the insurance industry, regulators and consumer groups;
				  and prevailing discoimt rates in the viatical and life settlement market in
				  Iowa or, if insufficient data is available for Iowa, the prevailing rates
				  nationally or in other states that maintain this data.
Iowa Administrative Code › Agency 191 - Insurance Division › Viatical and Life Settlements › Chapter 48 - Viatical and Life Settlements › Rule 191-48.6 - Filing of Forms

Current through Register Vol. 47, No. 3, July 24, 2024
If a viatical settlement provider subsequently desires to
				  change the viatical settlement contract documents or disclosure statements
				  approved at the time of licensure, or to use new ones, the provider shall
				  submit the new or modified contract documents or disclosure statements to the
				  commissioner for approval in triplicate, along with a postage-paid return
				  envelope. The viatical settlement provider shall identify its name and address
				  in the cover letter and also reference the form number of the modified viatical
				  settlement contract document or disclosure statement. Black-lining the
				  modifications made within the document(s) should expedite the form review and
				  approval process.
Iowa Administrative Code › Agency 191 - Insurance Division › Viatical and Life Settlements › Chapter 48 - Viatical and Life Settlements › Rule 191-48.7 - Reporting Requirements

Current through Register Vol. 47, No. 3, July 24, 2024
Pursuant to Iowa Code section
				  508E.6,
				  on or before March 1 of each year, the secretary and either the president or
				  the vice president of each viatical settlement provider licensed in this state
				  shall submit, under oath, an annual statement report for the immediately
				  preceding calendar year.
(1)
Transaction information.
The annual statement report shall
				contain the following transaction information for all viatical settlement
				transactions in which the viator is a resident of this state:
a. The following information pursuant to Iowa
				Code section
				508E.6:
(1) Total number of transactions;
(2) Aggregate face amount of all policies;
				and
(3) Total proceeds of policies
				settled;
Iowa Administrative Code › Agency 191 - Insurance Division › Viatical and Life Settlements › Chapter 48 - Viatical and Life Settlements › Rule 191-48.8 - Examination or Investigations

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Authority, scope and scheduling of examinations.
In addition
				to the authority, scope and scheduling of examinations set forth in Iowa Code
				section
				508E7.,
				the following provisions shall apply:
a. The
				commissioner may investigate suspected fraudulent viatical settlement acts and
				persons engaged in the business of viatical settlements.
b. The provisions of Iowa Code chapter 507
				shall apply to viatical settlement providers and viatical settlement brokers.
				The expense of examinations shall be assessed against the viatical settlement
				provider in the same manner as insurers are assessed for
				examinations.
c. Neither the
				commissioner nor any person that received the documents, material or other
				information while acting under the authority of the commissioner, including the
				NAIC and its affiliates and subsidiaries, shall be permitted to testify in any
				private civil action concerning any confidential documents, materials or
				information subject to this subrule.
Iowa Administrative Code › Agency 191 - Insurance Division › Viatical and Life Settlements › Chapter 48 - Viatical and Life Settlements › Rule 191-48.10 - Penalties; Injunctions; Civil Remedies; Cease and Desist

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Unfair trade practices. Pursuant to Iowa
				Code section
				508E.17, a
				violation of rule 191-48.4(508E),
				191-48.5 (508E), 191-48.6(508E),
				191-48.7 (508E) or 191-
				48.9(508E) shall be considered an unfair trade practice under Iowa Code chapter
				507B, and a violator shall be subject to the penalties contained in that
				chapter.
(2) Unauthorized insurer.
				A person doing the activities of a viatical settlement provider or a viatical
				settlement broker without a license under this chapter shall be deemed an
				unauthorized insurer and shall be subject to the penalties of Iowa Code chapter
				507A.
(3) License revocation and
				denial. The commissioner may suspend, revoke, refuse to issue, or refuse to
				renew the license of a viatical settlement provider or viatical settlement
				broker for violation of rule 48.3(508E).
(4) A viatical settlement provider licensed
				in this state that in the time required fails to file either the annual
				statement referred to in Iowa Code section 508E.6 or the annual audited
				financial statement referred to in subparagraph 48.3(1)
"a"
(1)
				shall pay an administrative penalty pursuant to Iowa Code section
				508E.16.
				The viatical settlement provider's right to transact further new business in
				this state shall immediately cease until the provider has fully complied with
				this rule.
(5) Pursuant to Iowa
				Code section
				508E.16,
				if the commissioner finds that an activity in violation of this rule presents
				an immediate danger to the public that requires an immediate final order, the
				commissioner may issue an emergency cease and desist order reciting with
				particularity the facts underlying the findings. The emergency cease and desist
				order is effective immediately upon service of a copy of the order on the
				respondent and remains in effect for 90 days. If the commissioner begins
				nonemergency cease and desist proceedings, the emergency cease and desist order
				remains effective, absent an order by a court of competent jurisdiction
				pursuant to 191-Chapters 2 and 3.
Iowa Administrative Code › Agency 191 - Insurance Division › Viatical and Life Settlements › Chapter 48 - Viatical and Life Settlements › Rule 191-48.11 - Suspension for Failure to Pay Child Support or State Debt

Current through Register Vol. 47, No. 3, July 24, 2024
The division must follow the procedures in rule
				  191-10.21(252J,272D) relating to producer suspension for failure to pay child
				  support or state debt for viatical settlement brokers, replacing "producer"
				  with "viatical settlement broker."
Iowa Administrative Code › Agency 191 - Insurance Division › Viatical and Life Settlements › Chapter 48 - Viatical and Life Settlements › Rule 191-48.14 - Severability

Current through Register Vol. 47, No. 3, July 24, 2024
If any rule or portion of a rule or its applicability to any
				  person or circumstance is held invalid by a court, the remainder of these rules
				  or the rules' applicability to other persons or circumstances shall not be
				  affected.
Iowa Administrative Code › Agency 191 - Insurance Division › Viatical and Life Settlements › Chapter 49 - Financial Instruments Used in Hedging Transactions › Rule 191-49.1 - Purpose

Current through Register Vol. 47, No. 3, July 24, 2024
The purpose of these rules is to set standards for the
				  prudent use of financial instruments used in hedging transactions in accordance
				  with Iowa Code section
				  5118(22)..
				  This chapter shall be applicable to the legal reserve funds for all domestic
				  insurers and United States branches of alien insurers entered through this
				  state.
Iowa Administrative Code › Agency 191 - Insurance Division › Viatical and Life Settlements › Chapter 49 - Financial Instruments Used in Hedging Transactions › Rule 191-49.3 - Guidelines and Internal Control Procedures

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Before engaging in a derivative
				transaction pursuant to Iowa Code section
				5118(22).,
				an insurer shall establish written guidelines that shall be used for effecting
				and maintaining the transactions. The guidelines shall:
a. Address investment or, if applicable,
				underwriting objectives, risk constraints, and the factors considered in
				establishing risk constraints such as credit risk limits;
b. Address permissible transactions and the
				relationship of those transactions to its operations, such as a precise
				identification of the risks being hedged by a derivative transaction;
				and
c. Require compliance with
				internal control procedures.
Iowa Administrative Code › Agency 191 - Insurance Division › Viatical and Life Settlements › Chapter 49 - Financial Instruments Used in Hedging Transactions › Rule 191-49.4 - Documentation Requirements

Current through Register Vol. 47, No. 3, July 24, 2024
An insurer shall maintain documentation and records relating
				  to each derivative transaction transacted pursuant to Iowa Code section
				  5118(22).
				  including, but not limited to:
1. The
				purpose or purposes of the transaction;
2. The assets or liabilities to which the
				transaction relates;
3. The
				specific derivative instrument used in the transaction;
4. For over-the-coimter derivative instrument
				transactions, the name of the counterparty and the counterparty exposure amount
				calculated not less than quarterly; and
5. For exchange traded derivative
				instruments, the name of the exchange and the name of the firm that handled the
				trade.
Iowa Administrative Code › Agency 191 - Insurance Division › Viatical and Life Settlements › Chapter 49 - Financial Instruments Used in Hedging Transactions › Rule 191-49.5 - Trading Requirements

Current through Register Vol. 47, No. 3, July 24, 2024
Each derivative instrument qualifying for legal reserve
				  purposes under Iowa Code section
				  5118(22).
				  shall be:
1. Traded on a qualified
				exchange;
2. Entered into with, or
				guaranteed by, a business entity with an investment grade rating by the NAIC
				Securities and Valuation Office or by a majority of nationally recognized
				statistical rating organizations (NRSRO), on the NAIC/NRSRO list, that rate the
				business entity;
3. Issued or
				written by, or entered into with, the issuer of the underlying interest on
				which the derivative instrument is based; or
4. Entered into with a qualified foreign
				exchange.
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.2 - Cost of Audit or Inspection

Current through Register Vol. 47, No. 3, July 24, 2024
(1) The
				administrator may assess the broker-dealer or investment adviser for reasonable
				charges of travel, lodging, and other expenses incurred by Iowa insurance
				division staff or independent persons conducting an audit or inspection and
				directly attributable to an audit or inspection made pursuant to Iowa Code
				section
				502411(4)..
				The assessment of costs of meals, lodging, transportation, and other actual and
				necessary travel expenses, if any, incurred by persons conducting an audit or
				inspection shall be determined in accordance with one of the following, as
				agreed by the administrator and the persons conducting an audit or inspection:
a. The department of administrative services
				(DAS) state accounting enterprise Accounting Policy and Procedures Manual
				guidelines for employee travel
				(https://das.iowa.gov/state-accounting/sae-policies-procedures-manual) and the
				DAS form Travel Section Policy and Procedures
				(https://das.iowa.gov/state-accounting/travel-relocation) in effect at the
				time of the audit or inspection.
b.
				The department of administrative services state accounting enterprise
				Accounting Policy and Procedures Manual guidelines for travel for in-state
				board, commission, advisory council, and task force member expenses.
c. The United States General Services
				Administration Continental United States ("CONUS") per diem travel allowances
				for lodging, meals and incidental expenses.
d. A reimbursement schedule as agreed by the
				administrator and the persons conducting the audit or inspection.
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.3 - Interpretative Opinions or No-action Letters

Current through Register Vol. 47, No. 3, July 24, 2024
Interested persons may request the administrator to issue an
				  interpretative opinion pursuant to Iowa Code section 5 02.605 (4). These
				  requests will be answered by means of a no-action letter. Requests for
				  confirmation of the availability of an exemption shall be answered in the same
				  manner. The following procedure is recommended for the submission of such
				  requests:
(1) The request should be in
				writing and include the factual situation involved, a citation to the
				applicable part of the rule or statute, and the question sought to be answered.
				Any disclosure or informational materials which pertain to the issue should
				also be filed.
(2) The
				administrator, or any person delegated under Iowa Code section
				502601(1)., may
				respond to the request by determining to take or not to take a no-action
				position or by declining to reach a determination due to insufficient facts,
				conflicting case or administrative law or such other reasons as the
				administrator's discretionary power allows.
(3) All no-action determinations shall be
				based upon the representations made by the requesting party in the letter and
				information filed, since any different facts or conditions might require a
				different conclusion. The no-action letter shall express the administrator's
				position on enforcement action only and shall not purport to express any legal
				conclusion on the questions presented. No determination shall take a position
				on whether or not any disclosure materials satisfactorily comply with the
				antifraud and civil liability sections of the Act.
(4) A no-action determination issued under
				this rule may be provided to interested persons for a filing fee of $100.
This rule is intended to implement Iowa Code section
				  502.605(4).
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.10 - Broker-dealer Registrations, Renewals, Amendments, Succession, and Withdrawals

Current through Register Vol. 47, No. 3, July 24, 2024
(1) An
				applicant for an initial registration to conduct business as a broker-dealer
				must:
a. File a current Form BD. If the
				applicant is a member of FINRA, Form BD shall be filed with CRD. If the
				applicant is not a member of FINRA, Form BD shall be signed and notarized and
				filed with the administrator; and
b. Pay a $200 filing fee. If the applicant is
				a member of FINRA, the fee shall be remitted to the CRD. If the applicant is
				not a member of FINRA, the fee shall be remitted to the
				administrator.
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.11 - Principals

Current through Register Vol. 47, No. 3, July 24, 2024
Every registered broker-dealer shall have at least two
				  officers or partners registered with FINRA as principals, appropriate to the
				  function(s) to be performed.
This rule is intended to implement Iowa Code section
				  502406..
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.12 - Agent and Issuer Registrations, Renewals and Amendments

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Agent registration. Every applicant for
				registration as an agent of a broker-dealer shall:
a. Pass the Uniform Securities Agent State
				Law Examination (Series 63) or the Uniform Combined State Law Examination
				(Series 66);
b. Pass the
				appropriate qualifying examination administered by FINRA. In the event that an
				applicant for registration as an agent has received a waiver by FINRA of a
				FINRA examination otherwise required by this paragraph, the FINRA waiver will
				be accepted in lieu of the examination requirement;
c. File an accurate and complete Form U-4
				with CRD; and
d. Pay a $40 filing
				fee to FINRA if applying for registration as an agent of a FINRA member
				broker-dealer, or to the administrator if applying for registration as an agent
				of a non-FINRA member broker-dealer.
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.13 - Agent Continuing Education Requirements

Current through Register Vol. 47, No. 3, July 24, 2024
Every registered agent shall comply with all applicable
				  continuing education requirements adopted by FINRA, NYSE, or any other
				  self-regulatory agency. Failure to comply with any such requirements may be a
				  basis for discipline pursuant to Iowa Code section
				  502412(4).
"n."
This rule is intended to implement Iowa Code section
				  502411(8)..
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.14 - Broker-dealer Record-keeping Requirements

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Unless otherwise provided by an SEC
				order, each broker-dealer registered or required to be registered under the Act
				shall make, maintain and preserve books and records in compliance with SEC
				Rules 17a-3 (
				17
				CFR24017a-3.), 17a-4 (
				17
				CFR24017a-4.), 15c2-6 ( 17 CFR240.15c2 - 6)
				and 15c2-ll ( 17CFR240.15c2 -l l).
(2) To the extent that the SEC amends the
				above-referenced rules, broker-dealers complying with such rules as amended
				shall not be subject to enforcement action by the administrator for violating
				this rule to the extent that the violation results solely from the
				broker-dealer's compliance with the amended rule.
This rule is intended to implement Iowa Code section
				  502.411(3).
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.15 - Broker-dealer Minimum Financial Requirements and Financial Reporting Requirements

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
				Each broker-dealer registered or required to be registered under the Act shall
				comply with SECRulesl5c3-l( 17CFR240.15c3 -l), 15c3-2( 17CFR240.15c3 - 2
				),andl5c3-3( 17CFR240.15c3 - 3).
(2) Each broker-dealer registered or required
				to be registered under the Act shall comply with SEC Rule 17a-11(
				17 CFR
				24017a-11.) and shall file with the
				administrator copies of notices of financial deficiencies, as required under
				SEC Rule 17a-ll ( 17 CFR 240.17a -ll).
(3) To the extent that the SEC amends the
				above-referenced rules, broker-dealers complying with such rules as amended
				shall not be subject to enforcement action by the administrator for violations
				resulting solely from the broker-dealer's compliance with the amended rules.
This rule is intended to implement Iowa Code section
				  502.411(2).
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.17 - Rules of Conduct

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Each
				broker-dealer, after executing and before completing each transaction with its
				customer, shall give or send the customer a written confirmation. A
				broker-dealer not registered pursuant to the Securities Exchange Act of 1934
				shall provide a written confirmation including, at a minimum:
a. A description of the security purchased or
				sold, the date of the transaction, the price at which the security was
				purchased or sold and any commission charged;
b. A statement as to whether the
				broker-dealer was acting for its own account, as the agent for the customer, as
				the agent for some other person, or as the agent for both the customer and some
				other person;
c. When the
				broker-dealer is acting as an agent for the customer, the name of the person
				from whom the security was purchased or to whom it was sold or the fact that
				such information will be furnished upon the customer's request.
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.18 - Limited Registration of Canadian Broker-dealers and Agents

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A Canadian
				broker-dealer may register under this rule if the broker-dealer:
a. Files with the administrator an
				application in the form required by the jurisdiction in which the broker-dealer
				has its principal office;
b. Files
				with the administrator a consent to service of process on Form U-2;
c. Is registered as a broker-dealer and is in
				good standing in the jurisdiction from which the broker-dealer is effecting
				transactions into Iowa and files with the administrator satisfactory evidence
				thereof;
d. Is a member of a
				self-regulatory organization or stock exchange in Canada; and
e. Pays a $200 filing fee.
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.19 - Brokerage Services by National and State Banks

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A bank may, without registering as a
				broker-dealer, effect:
a. Transactions
				pursuant to Iowa Code section
				502102(4).
"c";
or
b.
				Transactions permitted by order of the administrator
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.20 - Broker-dealers Having Contracts With National and State Banks

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A broker-dealer engaging in securities
				activities with banks as permitted by subrules 50.19(2) and 50.19(3) shall
				maintain for three years and make available to the administrator upon request
				the following records:
a. Copies of all
				advertisements and promotional literature disseminated by the bank and
				broker-dealer regarding securities services and products offered by the
				broker-dealer to bank customers and the public;
b. Copies of each contract executed between
				the bank and the broker-dealer which propose to sell securities to bank
				customers or the public;
c. Copies
				of new account forms to be completed by bank customers or members of the public
				who open an account with the broker-dealer;
d. A list of every bank employee who is a
				registered securities agent of the broker-dealer and the employee's social
				security number and CRD number; and
e. Copies of compliance and procedures
				manuals regarding the securities activities of the bank.
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.21 - Brokerage Services by Credit Unions, Savings Banks, and Savings and Loan Institutions

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A
				credit union, savings bank, or savings and loan institution may, without
				registering as a broker-dealer, effect:
a.
				Transactions pursuant to Iowa Code section
				502102(4).
"c";
and
b.
				Transactions permitted by order of the administrator
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.22 - Broker-dealers Having Contracts With Credit Unions, Savings Banks, and Savings and Loan Institutions

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A
				broker-dealer engaging in securities activities with credit unions, savings
				banks, or savings and loan institutions as permitted by subrules 50.21(2) and
				50.21(3) shall maintain for three years and make available to the administrator
				upon request the following records:
a. Copies
				of all advertisements and promotional literature disseminated by the credit
				union, savings bank, or savings and loan institution and the broker-dealer
				regarding securities services and products offered by the broker-dealer to
				credit union, savings bank, or savings and loan institution customers and the
				public;
b. Copies of each contract
				executed between the credit union, savings bank, or savings and loan
				institution and the broker-dealer which proposes to sell securities to credit
				imion, savings bank, or savings and loan institution customers or the
				public;
c. Copies of new account
				forms to be completed by credit union, savings bank, or savings and loan
				institution customers or members of the public who open an account with the
				broker-dealer;
d. A list of every
				credit union, savings bank, or savings and loan institution employee who is a
				registered securities agent of the broker-dealer and the employee's social
				security number and CRD number; and
e. Copies of compliance and procedures
				manuals regarding the securities activities of the credit union, savings bank,
				or savings and loan institution.
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.30 - Electronic Filing With Designated Entity

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Designation.
Pursuant to
				Iowa Code sections
				502406.
				and
				502608(3).
"a,"
the administrator designates the lARD operated by FINRA
				to receive and store filings and collect related fees from investment advisers
				on behalf of the administrator
(2)
Use of lARD.
Unless otherwise provided, all investment adviser
				applications, amendments, reports, notices, related filings and fees required
				to be filed with the administrator pursuant to the rules promulgated under the
				Act shall be filed electronically with and transmitted to lARD. The following
				additional conditions relate to such electronic filings:
a.
Electronic signature.
When a signature or signatures are required by the particular instructions of
				any filing to be made through lARD, a duly authorized signatory of the
				applicant, as required, shall affix the duly authorized signatory's electronic
				signature to the filing by typing the duly authorized signatory's name in the
				appropriate fields and submitting the filing to lARD. Submission of a filing in
				this manner shall constitute irrefutable evidence of legal signature by any
				individuals whose names are typed on the filing.
b.
When filed.
Solely for
				purposes of a filing made through lARD, a document is considered filed with the
				administrator when all fees are received and the filing is accepted by lARD on
				behalf of the state.
This rule is intended to implement Iowa Code sections
				  502.102(8), 502.406 and 502.608(3)
"a."
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.31 - Investment Adviser Applications and Renewals

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Investment adviser
				applications
-
required filings.
The application for
				initial registration as an investment adviser shall be made by:
a. Filing Form ADV Parts 1 and 2 with IARD;
				and
b. Remitting the $100 filing
				fee to IARD pursuant to Iowa Code section
				502410(3)..
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.32 - Application for Investment Adviser Representative Registration

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Designation.
Pursuant to Iowa Code sections
				502406.
				and
				502608(3).
"a,"
the administrator designates the CRD operated by FEMRA to
				receive and store filings and collect related fees from investment adviser
				representatives on behalf of the administrator
(2)
Initial application.
The
				application for initial registration as an investment adviser representative
				made pursuant to Iowa Code section
				502406(1).
				shall be made by filing Form U-4 with the CRD. The following shall be submitted
				to the CRD with the application:
a. Proof of
				compliance by the investment adviser representative with the examination
				requirements of rule
				191-5033.
				(502); and
b. If applicable, the
				$30 fee required pursuant to Iowa Code section
				502410(4)..
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.33 - Examination Requirements

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
				Except as exempted by subrule 50.33(2), a person applying to be registered as
				an investment adviser representative shall provide the administrator with proof
				that the person has obtained either:
a. A
				passing score on the Series 65 examination.
b. Passing scores on both the Series 7
				examination and the Series 66 examination and, if the application is received
				by the administrator on or after October 1, 2018, FINRA's Securities Industry
				Essentials Exam. In the event that an applicant for registration as an
				investment adviser representative has received a waiver by FINRA of the Series
				7 examination otherwise required by this paragraph, the FINRA waiver will be
				accepted in lieu of the examination requirement.
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.34 - Notice Filing Requirements for Federal Covered Investment Advisers

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Notice
				filing.
The notice filing for a federal covered investment adviser
				pursuant to Iowa Code section
				502405.
				shall be filed with IARD on an executed Form ADV. A notice filing of a federal
				covered investment adviser shall be deemed filed for purposes of this subrule
				when Form ADV and the fee of $100 required pursuant to Iowa Code section
				502410(5). are
				received by IARD.
(2)
Form
				ADV Part 2.
The administrator may:
a.
				Accept a copy of Part 2 of Form ADV as filed electronically with IARD;
				or
b. Deem Part 2 of Form ADV filed
				if a federal covered investment adviser provides, within five days of a
				request, Part 2 of Form ADV to the administrator. Because the administrator
				deems Part 2 of Form ADV to be filed, a federal covered investment adviser is
				not required to submit Part 2 of Form ADV to the administrator unless
				specifically requested to do so.
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.35 - Withdrawal of Investment Adviser Registration

Current through Register Vol. 47, No. 3, July 24, 2024
The application for withdrawal of registration as an
				  investment adviser pursuant to Iowa Code section
				  502409.
				  shall be completed on Form ADV-W and filed with lARD.
This rule is intended to implement Iowa Code section
				  502409..
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.36 - Investment Adviser Brochure

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
General requirements.
a.
				Unless otherwise provided in this rule, an investment adviser registered or
				required to be registered pursuant to Section 403 of the Act shall furnish each
				advisory client and prospective advisory client with:
(1) A brochure which may be a copy of Part 2
				A of its Form ADV or written documents containing the information required by
				Part 2A of Form ADV;
(2) A copy of
				its Part 2B brochure supplement for each individual:
1. Providing investment advice and having
				direct contact with clients in this state; or
2. Exercising discretion over assets of
				clients in this state, even if no direct contact is involved;
(3) A copy of its Part 2A Appendix
				1 wrap fee brochure if the investment adviser sponsors or participates in a
				wrap fee account;
(4) A summary of
				material changes, which may be included in Form ADV Part 2 or given as a
				separate document; and
(5) Such
				other information as the administrator may require.
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.37 - Cash Solicitation

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
				Payment of a cash fee, directly or indirectly, by an investment adviser to a
				solicitor for solicitation activities shall constitute an act, practice, or
				course of conduct operating as a fraud or deceit upon a person, pursuant to
				Iowa Code section
				502502(2).,
				if:
a. The solicitor:
(1) Is subject to an order issued by the
				administrator pursuant to Iowa Code section
				502412(4).;
(2) Has been convicted of a felony or within
				the previous ten years has been convicted of a misdemeanor involving conduct
				described in Iowa Code section
				502412(4).
"c"
; or
(3) Is
				found by the administrator to have engaged or has been convicted of engaging in
				any of the conduct specified in Iowa Code section
				502505.,
				502412(4).
"b"
or
				502412(4).
"i";
has materially aided in violating Iowa Code section
				502412(4).
"d";
or is subject to an order, judgment, or decree pursuant
				to Iowa Code section 502.412(4)
"d"
to
"f."
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.40 - Minimum Financial Requirements for Investment Advisers

Current through Register Vol. 47, No. 3, July 24, 2024
(1) An investment
				adviser registered or required to be registered under the Act that has custody
				of client funds or securities shall maintain at all times a minimum net worth
				of $35,000 except:
a. An investment adviser
				that has custody solely due to direct fee deduction and that is also in
				compliance with the applicable safekeeping requirements of paragraph
				50.39(2)
"c"
and the record-keeping requirements of rule
				191-5042.
				(502) is not required to comply with the net worth requirements of this rule;
				and
b. An investment adviser having
				custody solely due to advising pooled investment vehicles and that is in
				compliance with the applicable safekeeping requirements of paragraph
				50.39(1)
"e"
or 50.39(2) "J" and the record-keeping
				requirements of rule
				191-5042.
				(502) is not required to comply with the net worth requirements of this
				rule.
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.41 - Bonding Requirements for Investment Advisers

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Every investment adviser registered or
				required to be registered under the Act:
a.
				Having custody of or discretionary authority over client funds or securities
				shall be bonded in an amount determined by the administrator based upon the
				number of clients and the total assets under management of the investment
				adviser; and
b. Having custody of
				or discretionary authority over client funds or securities when the investment
				adviser does not meet the minimum net worth standard provisions of subrules
				50.40(1) and 50.40(2) must be bonded in the amount of the net worth deficiency
				rounded up to the nearest $5,000.
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.43 - Financial Reporting Requirements for Investment Advisers

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Every
				registered investment adviser that has custody of client funds or securities or
				requires payment of advisory fees six months or more in advance and in excess
				of $500 per client shall file with the administrator an audited balance sheet
				as of the end of the investment adviser's fiscal year. Each balance sheet filed
				pursuant to this rule must be:
a. Examined in
				accordance with generally accepted auditing standards and prepared in
				conformity with generally accepted accounting principles;
b. Audited by an independent certified public
				accountant; and
c. Accompanied by
				an opinion of the accountant as to the report of financial position, and by a
				note stating the principles used to prepare the opinion, the basis of included
				securities, and any other explanations required for clarity.
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.44 - Solely Incidental Services by Certain Professionals

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
General approach
a. Certain professionals may rely on an
				exclusion from the definition of "investment adviser" contained in Iowa Code
				section
				502102(15).
"b"
for lawyers, accountants, engineers or teachers whose
				performance of investment advice is solely incidental to the practice of the
				person's profession. Whether the exclusion from the definition of "investment
				adviser" is available to a lawyer, accountant, engineer or teacher providing
				investment advisory services within the meaning of Iowa Code section
				502102(15).
"b"
depends upon the relevant facts and
				circumstances.
b. In general, the
				administrator will determine whether the investment advisory services provided
				and the fees charged are solely incidental to the total services provided to
				the individual client by comparing whether the aggregate of such fees and
				services is solely incidental to the aggregate of services provided to all
				clients. In addition, the administrator will take other relevant factors into
				consideration in determining the applicability of the exclusion including, but
				not limited to, whether the firm establishes a separate subsidiary, division,
				or other business entity to perform advisory services or maintains an
				investment adviser registration with the U.S. Securities and Exchange
				Commission under the Investment Advisers Act of 1940. In this context, the
				administrator would refer to U.S. Securities and Exchange Commission Release
				IA-1092 relating to the analogous exclusion in the Investment Advisers Act of
				1940 which states that "... the exclusion... is not available... to a lawyer or
				accountant who holds himself out to the public as providing financial planning,
				pension consulting, or other financial advisory services. In such a case it
				would appear that the performance of investment advisory services by the person
				would not be solely incidental to his practice as a lawyer or
				accountant."
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.45 - Registration Exemption for Investment Advisers to Private Funds

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Definitions.
For purposes of this rule, the following
				definitions shall apply:
"3(c)(1) fund"
means a qualifying private
				  fund that is eligible for the exclusion from the definition of an investment
				  company under the Investment Company Act of 1940 (
				  15 U.S.C. Section
				  80a-3(c)(1)).
"Private fund adviser"
means an investment
				  adviser who provides advice solely to one or more qualifying private
				  funds.
"Qualifying private fund"
means a private
				  fund that meets the definition of a qualifying private fund in SEC Rule
				  203(m)-1 ( 17 CFR 275.203(m)-1).
"Value of primary residence"
means the fair
				  market value of a person's primary residence, less the amount of debt secured
				  by the property up to its fair market value.
"Venture capital fund"
means a private fund
				  that meets the definition of a venture capital fund in SEC Rule 203(1)-1 ( 17
				  CFR 275.203(1)-1).
(2)
Exemption for private fund advisers.
Subject to the additional
				requirements of subrule 50.45(3), a private fund adviser shall be exempt from
				the registration requirements of Iowa Code section
				502403.
				if the private fund adviser satisfies each of the following conditions:
a. Neither the private fund adviser nor any
				of its advisory affiliates are subject to a disqualification as described in
				SEC Rule 262 of Regulation A (
				17 CFR
				230262.).
b. The private fund adviser files with the
				state each report and amendment thereto that an exempt reporting adviser is
				required to file with the SEC pursuant to SEC Rule 204-4 (
				17 CFR
				275204-4.).
c. The private fund adviser pays any
				applicable fees.
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.46 - Contents of Investment Advisory Contract

Current through Register Vol. 47, No. 3, July 24, 2024
The provisions of this rule shall apply to federal covered
				  investment advisers to the extent that the conduct alleged is fraudulent,
				  deceptive, or as otherwise permitted by the National Securities Markets
				  Improvement Act of 1996.
(1) It is
				unlawful for any investment adviser, investment adviser representative, or
				federal covered investment adviser to enter into, extend, or renew any
				investment advisory contract unless it provides in writing:
a. The services to be provided, the term of
				the contract, the investment advisory fee, the formula for computing the fee,
				the amount of prepaid fee to be returned in the event of termination or
				nonperformance of the contract, and any grant of discretionary power to the
				investment adviser, investment adviser representative, or federal covered
				investment adviser;
b. That no
				direct or indirect assignment or transfer of the contract may be made by the
				investment adviser, investment adviser representative, or federal covered
				investment adviser without the consent of the client or other party to the
				contract;
c. That the investment
				adviser, investment adviser representative, or federal covered investment
				adviser shall not be compensated on the basis of a share of capital gains upon
				or capital appreciation of the funds or any portion of the funds of the
				client;
d. That the investment
				adviser, investment adviser representative, or federal covered investment
				adviser, if a partnership, shall notify the client or other party to the
				investment contract of any change in the membership of the partnership within a
				reasonable time after the change.
Iowa Administrative Code › Agency 191 - Insurance Division › Securities › Chapter 50 - Regulation of Securities Offerings and Those Who Engage in the Securities Business › Rule 191-50.47 - Business Continuity and Succession Planning for Investment Advisers

Current through Register Vol. 47, No. 3, July 24, 2024
(1) On and after
				July 1, 2017, every investment adviser registered in Iowa shall make and
				maintain records, pursuant to Iowa Code section
				502411(3).
"a,"
of the establishment, implementation and maintenance of a
				written business continuity and succession plan. The business continuity and
				succession plan shall be created and implemented in a manner consistent with
				the NASAA Guidance on Business Continuity and Succession Planning for
				State-Registered Investment Advisers, which is available on the Iowa insurance
				division's website, iid.iowa.gov. In developing the procedures for the business
				continuity and succession plan, the investment adviser shall consider, among
				other things, the size of the firm, the types of services provided and the
				number of locations of the investment adviser. The business continuity and
				succession plan shall provide for, at a minimum, all of the following:
a. The protection, backup, and recovery of
				books and records;
b. Alternate
				means of communications with customers, key personnel, employees, vendors,
				service providers (including third-party custodians of securities) and
				regulators, that will allow the communication of certain events, including, but
				not limited to, providing notice of a significant business interruption or the
				death or unavailability of key personnel or other disruptions or cessation of
				business activities;
c. Office
				relocation in the event of temporary or permanent loss of a principal place of
				business;
d. Assignment of duties
				to qualified responsible persons in the event of the death or unavailability of
				key personnel; and
e. Other means
				of minimizing service disruptions and client harm that could result from a
				sudden significant business interruption.