Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 05 - Securities › Part 2 - Post-Licensing Requirements (230-RICR-50-05-2) › Section 230-RICR-50-05-2.6 - Post-Licensing Filings

Current through June 14, 2024
A. In accordance
				  with R.I. Gen. Laws §
										7-11-209(c)(1),
				  the following information is required:
1.
				  Each broker-dealer, whether or not subject to SEC Rule
				  17 C.F.R. §
												240.17a-5, shall prepare an annual financial
				  statement as directed by SEC Rule
				  17 C.F.R. §
												240.17a-5. A copy of each annual financial
				  statement shall be retained by the broker-dealer as prescribed in SEC Rule
				  17 C.F.R. §
												240.17a-5 and, upon the written or verbal
				  request of the Department anytime during that period, furnish a copy of said
				  annual financial statement within seventy-two hours of the request.
2. Each broker-dealer shall file with the
				  Department a copy of any complaint related to its business, transactions or
				  operations naming the broker-dealer or any of its partners, officers or agents
				  as defendant in any civil or criminal proceeding, or in any administrative or
				  disciplinary proceeding by any public or private regulatory agency, within
				  twenty (20) days of the date the complaint is served on the broker-dealer; a
				  copy of any answer or reply thereto filed by the broker-dealer within ten (10)
				  days of the date such is filed; and a copy of any decision, order or sanction
				  made with respect to any such proceeding within twenty (20) days of the date
				  the decision order or sanction is rendered
3. Each broker-dealer shall file with the
				  Department a notice of transfer of control or change of name within thirty (30)
				  days after the date on which the transfer of control or change of name
				  occurs.
4. Except as provided in
				  §§
											2.6(A)(2), (3) and (8)   of this Part, all material changes in the
				  information included in a broker-dealer's most recent application for license
				  shall be set forth in an amendment to Form BD filed with the Director within
				  thirty (30) days after the change occurs.
5. Every broker-dealer shall file with the
				  Department the following reports concerning its net capital and aggregate
				  indebtedness:
a. Immediate electronic or
				  written notice whenever the net capital of the broker-dealer is less than is
				  required under §
												1.14   of this Subchapter specifying the respective amounts
				  of its net capital and aggregated indebtedness on the date of the
				  notice:
b. A copy of every report
				  of notice required to be filed by the broker-dealer pursuant to SEC Rule
				  17 C.F.R. §
													240.17a-11.
6. Each broker-dealer shall give immediate
				  written notice to the Department of the theft or disappearance of any Rhode
				  Island customers' securities or funds that are in the custody or control of its
				  offices, whether within or outside this state, stating all material facts known
				  to it concerning the theft or disappearance. However, if a broker-dealer
				  complies with the provisions of SEC Rule
				  17 C.F.R. §
												240.17(f)(1), such
				  broker-dealer need not give the notice required by this paragraph.
7. Each broker-dealer shall file with the
				  Department a copy of any subordination agreement relating to the broker-dealer,
				  within ten (10) days after the agreement has been entered, unless prior thereto
				  the broker-dealer has filed a copy of the agreement with a national securities
				  exchange or association of which it is a member.
8. Each broker-dealer shall notify the
				  Department in writing at least ten (10) days prior to opening and not more than
				  ten (10) days after closing in this state any branch office as defined in R.I.
				  Gen. Laws §
											7-11-206(b). The
				  notification shall include such information as the Department may
				  request.
9. Each investment adviser
				  shall within ninety days after its fiscal year end prepare a balance sheet in
				  accordance with generally accepted accounting principles and retain a copy of
				  that balance sheet for a period of not less than five years unless such
				  retention requirement would be in violation of
				  15 U.S.C. §
												80b-18a(b). At any time
				  within that period, such investment adviser shall make available, within
				  seventy-two hours of any verbal or written request of the Director, a copy of
				  said balance sheet. Investment advisers who retain custody of any client's
				  funds or securities must prepare and retain as above an audited balance sheet
				  and, within seventy-two hours, upon the verbal or written request of the
				  Director, make said audited balance sheet available.
10. Each investment adviser shall file with
				  the Department:
a. A copy of any complaint
				  related to its business, transactions, or operations naming the investment
				  adviser or any of its partners, officers or investment adviser representatives
				  as defendants in any civil or criminal proceeding, or in any administrative or
				  disciplinary proceeding by any public or private regulatory agency, within
				  twenty (20) days of the date the complaint is served on the investment adviser;
b. A copy of any answer or reply
				  to the complaint filed by the investment adviser within ten (10) days of the
				  answer or reply is filed; and
c. A
				  copy of any decision, order or sanction made with respect to any such
				  proceeding within twenty (20) days of the date the decision, order or sanction
				  is rendered.
11. Each
				  investment adviser shall file with the director a notice of transfer of control
				  or change of name within thirty (30) days after the date on which the transfer
				  of control or change of name occurs.
12. Except as provided in §§
											2.6(10)
				  and (11)   of this Part, all material changes in the information included in an
				  investment adviser's most recent application for license shall be set forth in
				  an amendment to form ADV filed with the Department within the time prescribed
				  for filings such amendments with the SEC or for advisers who are not registered
				  under the Investment Advisers Act of 1940, thirty (30) days after the change
				  occurs.