Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 05 - Securities › Part 1 - Pre-Licensing Requirements (230-RICR-50-05-1) › Section 230-RICR-50-05-1.7 - Exemption of Certain Broker-Dealers, Investment Advisers, and Sales Representatives Using the Internet for General Dissemination of Information on Products and Services

Current through June 14, 2024
A. The following
				  broker-dealers, investment advisers, broker-dealer sales representatives and
				  investment adviser representatives (as those terms are defined in R.I. Gen.
				  Laws §
										7-11-101(1) (11),(12) and
				  (20)) who use the Internet to distribute
				  information on available products and services through certain communications
				  made on the Internet directed generally to anyone having access to the
				  Internet, and transmitted through postings on Bulletin Boards, displays on
				  "Home Pages" or similar methods (hereinafter "Internet Communications") shall
				  not be deemed as "transacting business" in this state for the purposes of R.I.
				  Gen. Laws §§
										7-11-201 and
				  7-11-203 if the all following
				  conditions are observed:
1. The Internet
				  Communication does not involve either affecting or attempting to affect
				  transactions in securities, or the rendering of personalized investment advice
				  for compensation, but is limited to the dissemination of general information on
				  products and services;
2. The
				  Internet Communication indicates, either directly or indirectly, that the
				  Representatives' services are not being offered to residents of the State of
				  Rhode Island;
3. The Internet
				  Communication is not otherwise directed to any person in Rhode Island by or on
				  behalf of the Representatives;
4.
				  No services are rendered by Representatives in Rhode Island until they are duly
				  licensed under R.I. Gen. Laws §§
											7-11-201,
				  7-11-203; or exempt from licensing
				  under R.I. Gen. Laws §§
											7-11-202,
				  7-11-204;
5. Follow-up, individualized responses to
				  persons in Rhode Island by such Representatives that involve either the
				  affecting or attempting to affect transactions in securities, or the rendering
				  of personalized investment advice for compensation, as may be, will not be made
				  absent compliance with state broker-dealer, investment adviser, or
				  Representatives registration requirements, or an applicable exemption or
				  exclusion;
6. The Internet
				  Communication contains a mechanism, including and without limitation, technical
				  "firewalls" or other implemented policies and procedures, designed reasonably
				  to ensure that prior to any direct communication with prospective customers or
				  clients in this state, said broker-dealer, investment adviser, or
				  Representative is first registered in Rhode Island or qualifies for an
				  exemption or exclusion form such requirement. Nothing in this paragraph shall
				  be construed to relieve a state registered broker-dealer, investment adviser,
				  or Representative from any applicable securities registration requirement in
				  Rhode Island; and