reglab/statecodes huggingface dataset:
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-50-05-1.4 - Definitions

Current through June 14, 2024
A. In addition to the terms defined in R.I.
				  Gen. Laws §
										7-11-101, when used in this Part,
				  the following definitions shall have the following meanings:
1. "3(c)(1) fund" means a private fund that
				  is excluded from the definition of an investment company under §
											3(c)(1)   of
				  the Investment Company Act of 1940,
				  15 U.S.C. §
												80a-3(c)(1).
2. "CRD" means the Central Registration
				  Depository operated by FINRA.
3.
				  "Department" means the Securities Division of the Rhode Island Department of
				  Business Regulation.
4. "Director"
				  means the Director of the Rhode Island Department of Business Regulation or his
				  or her designee.
5. "FINRA" means
				  the Financial Industry Regulatory Authority, which is a self-regulatory
				  organization as that term is defined in R.I. Gen. Laws §
											7-11-101(23).
6. "IARD" means the Investment
				  Adviser Registration Depository, which is operated by FINRA.
7. "Private fund" means an issuer that would
				  be an investment company as defined in §
											3   of the Investment Company Act of
				  1940, 15 U.S.C. §
												80a-3, but for
				  15 U.S.C. §§
												80a-3(c)(1) or
				  80a-3(c)(7) of
				  that Act.
8. "Private fund
				  adviser" means an investment adviser who provides advice solely to one or more
				  private funds.
9. "Representatives"
				  means Broker Dealer Sales Representatives and/or Investment Adviser
				  Representatives.
10. "RIUSA" means
				  the Rhode Island Uniform Securities Act set forth in R.I. Gen. Laws §
											7-11-101 et seq.
11. "SCOR" means Small Corporate Offering
				  Registration.
12. "SEC" means the
				  United States Securities and Exchange Commission.
13. "Value of primary residence" means the
				  fair market value of a person's primary residence, subtracted by the amount of
				  debt secured by the property up to its fair market value.
14. "Venture capital fund" means a private
				  fund that meets the definition of a venture capital fund in SEC Rule  203(l)   -1,
				  17 C.F.R. §
												275.203(l)-1.
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-50-05-1.5 - Broker-Dealer Exemptions

Current through June 14, 2024
A. The following
				  broker-dealers (as that term is defined in R.I. Gen. Laws §
										7-11-101(1)) shall
				  be exempt from the licensing requirements of R.I. Gen. Laws §
										7-11-201:
1. Any broker-dealer who is a resident of
				  Canada, has no office or other physical presence in this State, and complies
				  with the following conditions:
a. Only
				  affects or attempts to affect transactions exempted by R.I. Gen. Laws §
												7-11-402 unless otherwise expressly
				  required by the terms of the exemption:
(1)
				  with or for a person who is a resident of Canada who is temporarily present in
				  Rhode Island and with whom the Canadian broker-dealer had a bona fide
				  business-client relationship before the person entered the State; or
(2) with or for a person who is a resident of
				  Canada who is present in Rhode Island and whose transactions are in a
				  self-directed tax advantages retirement plan in Canada of which the person is
				  the holder or contributor;
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-50-05-1.6 - Exempt Investment Adviser Representatives

Current through June 14, 2024
A. The
				  following investment adviser representatives are exempt from the licensing
				  requirement of R.I. Gen. Laws §
										7-11-203:
1. Individuals who prepare reports or
				  analyses concerning securities who are not identified to advisory clients as
				  having prepared such reports or analyses and who do not provide any investment
				  advice directly to advisory clients (unless required to be licensed due to
				  their roles as investment adviser representatives under R.I. Gen. Laws §
											7-11-101(12)(i)(A)(I)-(V).
2. Individuals, who are not on the adviser's
				  investment committee, who determine any investment advice to be given to
				  advisory clients and who do not provide any investment advice directly to
				  advisory clients. If no investment committee exists, this exemption applies to
				  the individuals who determine any investment advice where there are more than
				  five such individuals who are all supervised by one or more persons who are
				  licensed as investment advisers or investment adviser
				  representatives.
3. Individuals who
				  solicit, offer or negotiate for the sale of or sell investment advisory
				  services provided such solicitation activities are solely incidental to the
				  activities for which such individuals are employed and who would not be an
				  investment adviser representative except for the performance of the activities
				  described in §
											1.6(A)(3)   of this Part.
4. Any partner, officer, director or person
				  acting in a similar capacity who supervises employees only with respect to
				  activities other than investment advisory activities requiring licensing under
				  R.I. Gen. Laws §
											7-11-101(12)(A)(I)-(IV).
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-50-05-1.8 - Registration Exemption for Investment Advisers to Private Funds

Current through June 14, 2024
A. Exemption for Private Fund Advisers
1. A private fund adviser shall be exempt
				  from the registration requirements of R.I. Gen. Laws §
											7-11-203 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
				  Rule  262   of SEC Regulation A,
				  17 C.F.R. §
													230.262;
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 Securities and Exchange Commission pursuant to SEC
				  Rule  204-4, 17 C.F.R. §
													275.204-4; and
c. The private fund adviser pays the same fee
				  as that specified for a federal covered adviser in R.I. Gen. Laws §
												7-11-206(a)(5).
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-50-05-1.9 - Licensing Applications

Current through June 14, 2024
A. The application
				  and consent to service of process requirements of R.I. Gen. Laws §
										7-11-205 are met as follows:
1. The application for initial registration
				  as a broker-dealer shall be made by completing Form BD in accordance with the
				  form instructions and by filing the form with CRD. The annual renewal shall be
				  filed with the CRD. The application for initial registration as a sales
				  representative shall be made by filing Form U-4 with the CRD. The annual
				  renewal shall be filed with the CRD. If the broker-dealer is not a FINRA
				  member, the application, amendments, fee and renewal shall be filed with the
				  Department.
2. The application for
				  initial registration as an investment adviser shall be made by completing Form
				  ADV in accordance with the form instructions and by filing the form with the
				  IARD. The application for an investment adviser annual renewal shall be filed
				  with the IARD.
3. The application
				  for initial registration as an investment adviser representative shall be made
				  by filing Form U-4 with the CRD. The annual renewal shall be made with the CRD.
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-50-05-1.10 - Multiple Licensing of Sales Representatives

Current through June 14, 2024
A.
				  Pursuant to R.I. Gen. Laws §
										7-11-208(d), the
				  Director may authorize multiple licensing if each employer files a written
				  undertaking with the Director containing the following information:
1. A statement by each employer that it
				  consents to the multiple employment of the sales representative and setting
				  forth the effective date of the multiple employment; and
2. A statement by each employer that it
				  agrees to assume joint and several liability with all of the other employers
				  for any act or omission of the sales representative during the stated
				  employment period.
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-50-05-1.11 - Multiple Licensing of Investment Advisers

Current through June 14, 2024
A.
				  Pursuant to R.I. Gen. Laws §
										7-11-208(g), the
				  Director may authorize multiple licensing if each licensed or registered entity
				  submits a written undertaking with the Department containing the following
				  information:
1. A statement by each licensed
				  or registered entity that it consents to the multiple employment of the
				  investment adviser representative and setting forth the effective date of the
				  multiple employment; and
2. A
				  statement by each licensed or registered entity that it agrees to assume joint
				  and several liability with all other named licensed or registered entities for
				  any act or omission of any investment adviser representative during the
				  employment period.
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-50-05-1.12 - Multiple Licensing of Sales Representatives and Investment Advisers with Unaffiliated Firms

Current through June 14, 2024
A. Pursuant to R.I.
				  Gen. Laws §
										7-11-208(i), the
				  Director may authorize dual licensing of sales representatives and investment
				  adviser representatives with unaffiliated broker dealer and investment adviser
				  firms if each licensed or registered entity submits a written undertaking with
				  the Director containing the following information:
1. A statement by each licensed or registered
				  entity that it consents to the multiple employment of the sales representative
				  or investment adviser representative and setting forth the effective date of
				  the multiple employment; and
2. A
				  statement by each licensed or registered entity that it agrees to assume joint
				  and several liability with all other named licensed or registered entities for
				  any act or omission of any sales representative or investment adviser
				  representative during the employment period.
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-50-05-1.13 - Examinations

Current through June 14, 2024
A. Examination Requirements
1. Any person applying to be registered as an
				  investment adviser or investment adviser representative under the Act shall
				  provide the Department with proof of obtaining a passing score on one of the
				  following examinations:
a. The Uniform
				  Investment Adviser Law Examination (Series 65 examination); or
b. The General Securities Representative
				  Examination (Series 7 examination) and the Uniform Combined State Law
				  examination (Series 66 examination). For applicants applying on or after
				  October 1, 2018, the Securities Industry Essentials ("SIE") Exam will also be
				  required.
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-50-05-1.14 - Minimum Net Capital

Current through June 14, 2024
A. Every
				  broker-dealer, whether or not subject to Rule  15   c3-1 under the Securities
				  Exchange Act of 1934, 17
				  C.F.R. §
											240.15c
										3 -
				  1, shall maintain net capital in
				  such minimum amounts as are designated in that rule for the activities to be
				  engaged in by a broker-dealer in this state.
B. The aggregate indebtedness of each
				  broker-dealer, whether or not subject to Rule  15   c 3-1 under the Securities
				  Exchange Act of 1934, 17
				  C.F.R. §
											240.15c
										3 -
				  1, to all other persons shall not
				  exceed the levels prescribed in that rule.
C. If a broker-dealer is an individual, the
				  person shall segregate from personal capital an amount sufficient to satisfy
				  the net capital requirement, and the amount so segregated shall be utilized
				  solely for the business for which the broker-dealer is licensed.
D. An investment adviser licensed under
				  RIUSA, but exempt from registration under the Investment Advisers Act of 1940,
				  15 U.S.C. §
											80b-6a, must at all times maintain net worth
				  of not less than $5,000. This applies only to investment advisers that do not
				  take or retain custody of securities or funds of a client. Investment advisers
				  that take or retain custody must comply with the provisions of §
										2.12   of
				  this Subchapter.
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-50-05-1.15 - Broker-Dealer Bond

Current through June 14, 2024
A. Every
				  broker-dealer who is not registered under the Securities Exchange Act of 1934
				  shall file with the Department a surety bond in the amount set by order of the
				  Director with a minimum of $100,000 and a maximum of $1,000,000, except:
1. Broker-dealers who are members of the
				  Securities Investor Protection Corporation; or
2. Broker-dealers who do not have custody or
				  possession of any customer's funds or securities.
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-50-05-2.1 - Authority

Current through June 14, 2024
This regulation is promulgated by the Director of the
					 Department of Business Regulation pursuant to R.I. Gen. Laws §
										7-11-705.
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-50-05-2.2 - Purpose

Current through June 14, 2024
The purpose of this regulation is to clarify and set forth
					 practices and procedures consistent with Chapter 7-11 of the Rhode Island
					 General Laws.
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-50-05-2.3 - Severability Provisions

Current through June 14, 2024
If any provision of this Part or the application thereof to
					 any person or circumstances is held invalid or unconstitutional, the invalidity
					 or unconstitutionality shall not affect other provisions or applications of
					 this Part which can be given effect without the invalid or unconstitutional
					 provision or application, and to this end the provision of this regulation are
					 severable.
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-50-05-2.4 - Definitions

Current through June 14, 2024
A. In addition to the terms defined in R.I.
				  Gen. Laws §
										7-11-101, when used in this Part,
				  the following terms shall have the following meanings:
1. "Broker-dealer services" means the
				  investment banking or securities business as defined in paragraph (p) of
				  Article 1 of the By-Laws of FINRA.
2. "Department" means the Securities Division
				  of the Rhode Island Department of Business Regulation.
3. "Director" means the Director of the Rhode
				  Island Department of Business Regulation or his or her designee.
4. "Financial institution" means federal and
				  state chartered banks, savings and loan associations, savings banks, credit
				  unions, and the service corporations of such institutions located in Rhode
				  Island.
5. "FINRA" means the
				  Financial Industry Regulatory Authority, which is a self-regulatory
				  organization as that term is defined in R.I. Gen. Laws §
											7-11-101(23).
6. "IARD" means the Investment
				  Adviser Registration Depository, which is operated by FINRA.
7. "Networking arrangements" means a
				  contractual or other agreement between a broker-dealer and a financial
				  institution pursuant to which the broker-dealer conducts broker-dealer services
				  on the premises of such financial institution where retail deposits are
				  taken.
8. "RIUSA" means the Rhode
				  Island Uniform Securities Act set forth in R.I. Gen. Laws §
											7-11-101 et seq.
9. "SEC" means the United States Securities
				  and Exchange Commission.
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-50-05-2.5 - Expiration of Licenses

Current through June 14, 2024
The licenses of a broker-dealer, sales representative,
					 investment adviser or investment adviser representative expire on December 31
					 of each year.
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-50-05-2.7 - Required Records

Current through June 14, 2024
A. Every
				  broker-dealer, whether or not subject to the Securities Exchange Act of 1934,
				  shall make and keep current the records required by that Act and rules
				  thereunder.
B. Every investment
				  adviser, whether or not subject to the Investment Advisers Act of 1940, shall
				  make and keep current the records required by that Act and rules
				  thereunder.
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-50-05-2.8 - Successor Firms

Current through June 14, 2024
An applicant for licensing of a successor under R.I. Gen.
					 Laws §
										7-11-210 shall complete the same
					 forms and fees as for initial licensing.
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-50-05-2.9 - Inspection Fees

Current through June 14, 2024
Licensees shall be charged a fee of one hundred dollars
					 ($100.00) per examiner per day plus actual costs of transportation and lodging
					 where applicable for examinations under R.I. Gen. Laws §
										7-11-211.
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-50-05-2.11 - Adviser Custody Conditions - Federally Registered

Current through June 14, 2024
An investment adviser registered under the Investment
					 Advisers Act of 1940 may take or retain custody of securities or funds of a
					 client only while the investment adviser is in full compliance with SEC Rule
					 17 C.F.R. §
											275.206(4)-2 and while the
					 investment adviser maintains a net worth of not less than
					 $25,000.00.
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-50-05-2.12 - Adviser Custody Conditions - Federally Exempt

Current through June 14, 2024
An investment adviser licensed under RIUSA, but exempt from
					 registration under the Investment Advisers Act of 1940, may take or retain
					 custody of securities or funds of a client only while the investment adviser is
					 in full compliance with SEC Rule
					 17 C.F.R. §
											275.206(4)-2, and the
					 provisions of the RIUSA and all relevant rules promulgated thereunder; the
					 investment adviser must maintain a net worth of not less than $25,000.00 and
					 have filed with the Director a surety bond in the amount set by order of the
					 director with a minimum of $100,000 and a maximum or $1,000,000; and the
					 investment adviser must insure that every investment adviser representative
					 associated with the investment adviser has filed with the director a surety
					 bond in the amount set by order of the Director with a minimum of $10,000 and a
					 maximum of $100,000.
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-50-05-2.13 - Senior-Specific Certification and Professional Designations

Current through June 14, 2024
A. The use of a senior specific certification
				  or designation by any person in connection with the offer, sale, or purchase of
				  securities, or the offering of advice as to the value of or the advisability of
				  investing in, purchasing, or selling securities, either directly or indirectly
				  or through publications or writings, or by issuing or promulgating analyses or
				  reports relating to securities, that indicates or implies that the user has
				  special certification or training in advising or servicing senior citizens or
				  retirees, in such a way as to mislead any person shall be a dishonest and
				  unethical practice in the sale of securities as defined in this Regulation. The
				  prohibited use of such certifications or professional designation includes, but
				  is not limited to, the following:
1. Use of a
				  certification or professional designation by a person who has not actually
				  earned or is otherwise ineligible to use such certification or
				  designation;
2. Use of a
				  nonexistent or self-conferred certification or professional
				  designation;
3. Use of a
				  certification or professional designation that indicates or implies a level of
				  occupational qualifications obtained through education, training, or experience
				  that the person using the certification or professional designation does not
				  have; and
4. Use of a certification
				  or professional designation that was obtained from a designating or certifying
				  organization that:
a. Is primarily engaged in
				  the business of instruction in sales and/or marketing;
b. Does not have reasonable standards or
				  procedures for assuring the competency of its designees or
				  certificants;
c. Does not have
				  reasonable standards or procedures for monitoring and disciplining its
				  designees or certificants for improper or unethical conduct; or
d. Does not have reasonable continuing
				  education requirements for its designees or certificants in order to maintain
				  the designation or certificate.
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-50-05-2.14 - Sale of Securities at Financial Institutions

Current through June 14, 2024
A. Applicability
1.
											§
											2.14   of this Part applies
				  exclusively to broker-dealer services conducted by broker-dealers on the
				  premises of a financial institution where retail deposits are taken.
2.
											§
											2.14   of this Part does not alter or
				  abrogate a broker-dealer's obligation to comply with other applicable laws,
				  rules, or regulations that may govern the operations of broker-dealers and
				  their agents, including but not limited to, supervisory obligations.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 05 - Securities › Part 3 - Issuance and Registration of Securities (230-RICR-50-05-3) › Section 230-RICR-50-05-3.1 - Authority

Current through June 14, 2024
This regulation is promulgated by the Director of the
					 Department of Business Regulation pursuant to R.I. Gen. Laws §
										7-11-705.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 05 - Securities › Part 3 - Issuance and Registration of Securities (230-RICR-50-05-3) › Section 230-RICR-50-05-3.2 - Purpose

Current through June 14, 2024
The purpose of this regulation is to clarify and set forth
					 practices and procedures consistent with R.I. Gen. Laws Chapter
					 7-11.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 05 - Securities › Part 3 - Issuance and Registration of Securities (230-RICR-50-05-3) › Section 230-RICR-50-05-3.3 - Severability Provisions

Current through June 14, 2024
If any provision of this Part or the application thereof to
					 any person or circumstances is held invalid or unconstitutional, the invalidity
					 or unconstitutionality shall not affect other provisions or applications of
					 this Part which can be given effect without the invalid or unconstitutional
					 provision or application, and to this end the provision of this regulation are
					 severable.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 05 - Securities › Part 3 - Issuance and Registration of Securities (230-RICR-50-05-3) › Section 230-RICR-50-05-3.4 - Definitions

Current through June 14, 2024
A. In addition to the terms defined in R.I.
				  Gen. Laws §
										7-11-101, when used in this Part,
				  the following terms shall have the following meanings:
1. "Department" means the Securities Division
				  of the Rhode Island Department of Business Regulation.
2. "Director" means the Director of the Rhode
				  Island Department of Business Regulation or his or her designee.
3. "RIUSA" means the Rhode Island Uniform
				  Securities Act set forth in R.I. Gen. Laws §
											7-11-101 et seq.
4. "SEC" means the United States Securities
				  and Exchange Commission.
5. "ULOR"
				  means a Uniform Limited Offering Registration.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 05 - Securities › Part 3 - Issuance and Registration of Securities (230-RICR-50-05-3) › Section 230-RICR-50-05-3.5 - Uniform Limited Offering Registration

Current through June 14, 2024
A. Authority,
				  Scope, and Purpose
1. In addition to the
				  authority set forth in §
											3.1   of this Part, §
											3.5   of this Part is also
				  authorized by R.I. Gen. Laws §
											7-11-304(c).
2.
											§
											3.5   of this Part applies to the
				  registration of corporate securities offerings by qualification under R.I. Gen.
				  Laws §
											7-11-304(c) which
				  are exempt from registration with the Securities and Exchange Commission under
				  Securities and Exchange Commission Regulation D, Rule
				  17 C.F.R. §
												230.504, or under Regulation A, Rule
				  17 C.F.R. §
												230.251, as promulgated under the Securities
				  Act of 1933.
3. The purpose of
				  §
											3.5   of this Part is to implement R.I. Gen. Laws §
											7-11-304(c) in
				  order to simplify the registration of small corporate securities offerings and
				  promote uniformity with other states.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 05 - Securities › Part 3 - Issuance and Registration of Securities (230-RICR-50-05-3) › Section 230-RICR-50-05-3.6 - Federal Covered Securities - Notice Filing Requirements under Section 18(b)(2) of the Securities Act of 1933

Current through June 14, 2024
A. Pursuant to R.I.
				  Gen. Laws §
										7-11-307(a), for a
				  covered security under Section  18(b)(2)   of the Securities Act of 1933,
				  15 U.S.C. §
											77r(b)(2), unless the
				  security is exempted by R.I. Gen. Laws §
										7-11-401 or is sold in an exempt
				  transaction under R.I. Gen. Laws §
										7-11-402, a notice filing shall be
				  filed with the Department prior to the initial offer of such security in this
				  state, which filing shall consist of:
1. A
				  Form NF;
2. A Form U-2 for consent
				  to service of process, unless the version of the Form NF contains a consent to
				  service of process; and
3. The
				  filing fee set forth in R.I. Gen. Laws §
											7-11-307(a)(1) or
				  (2), as applicable.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 05 - Securities › Part 3 - Issuance and Registration of Securities (230-RICR-50-05-3) › Section 230-RICR-50-05-3.7 - Federal Covered Securities - Notice Filing Requirements under Section 18(b)(3) of the Securities Act of 1933 (Reg. A+, Tier 2)

Current through June 14, 2024
A. Federal Covered Securities, specifically
				  securities issued under Section  18(b)(3)   of the Securities Act of 1933,
				  15 U.S.C. §
											77r(b)(3), which are offered
				  or sold within this state, are required to file notices with the Securities
				  Division.
B. Pursuant to R.I. Gen.
				  Laws §
										7-11-307(c) of the
				  RIUSA, for a covered security under Section  18(b)(3)   of the Securities Act of
				  1933, 15 U.S.C. §
											77r(b)(3), unless the
				  security is exempted by R.I. Gen. Laws §
										7-11-401 or is sold in an exempt
				  transaction under R.I. Gen. Laws §
										7-11-402, a notice filing shall be
				  filed with the director prior to the initial offer of such security in this
				  state, which filing shall consist of:
1. A
				  Form U-1, the Uniform Application to Register Securities or a Uniform Notice
				  Filing of Regulation A - Tier 2 Offering; and
2. The filing fee set forth in R.I. Gen. Laws
				  §
											7-11-307(a)(1).
3. If consent to service of process is not
				  included in the version of the form submitted in §
											3.7(B)(1)   of this Part,
				  then the filing must also include a Form U-2.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 05 - Securities › Part 3 - Issuance and Registration of Securities (230-RICR-50-05-3) › Section 230-RICR-50-05-3.8 - Federal Covered Securities - Notice Filing Requirements under Section 18(b)(4)(F) of the Securities Act of 1933

Current through June 14, 2024
A. Pursuant to R.I.
				  Gen. Laws §
										7-11-307(b), for a
				  covered security under Section  18(b)(4)(F)   of the Securities Act of 1933,
				  15 U.S.C. §
											77r(b)(4)(F), unless the
				  security is exempted by R.I. Gen. Laws §
										7-11-401 or is sold in an exempt
				  transaction under R.I. Gen. Laws §
										7-11-402, a notice filing shall be
				  filed with the Department no later than 15 calendar days after the first sale
				  is made in this state (provided, however, that if the 15th day is a Saturday,
				  Sunday or state holiday, the due date shall be the next business day). The
				  notice filing shall consist of:
1. One copy
				  of the latest Form D filed with the SEC; and
2. The filing fee set forth in R.I. Gen. Laws
				  §
											7-11-307(b).
3. If consent to service of process is not
				  included in the version of the form submitted in §
											3.8(A)(1)   of this Part,
				  then the filing must also include a Form U-2.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 05 - Securities › Part 3 - Issuance and Registration of Securities (230-RICR-50-05-3) › Section 230-RICR-50-05-3.9 - Form of Filing for Exemption

Current through June 14, 2024
The Director hereby specifies that, for purposes of
					 obtaining the exemption under R.I. Gen. Laws §
										7-11-402(2), all
					 information, under cover of a letter stating that the information is being
					 filed to apply for the exemption under R.I. Gen. Laws §
										7-11-402(2), must
					 be filed with the Department in the form required under the Securities Exchange
					 Act of 1934 and rules promulgated thereunder.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 05 - Securities › Part 3 - Issuance and Registration of Securities (230-RICR-50-05-3) › Section 230-RICR-50-05-3.10 - Securities Manual

Current through June 14, 2024
Unless otherwise provided by rule or order of the Director,
					 this state recognizes the following as nationally recognized securities manuals
					 for the purpose of qualifying for the exemption under R.I. Gen. Laws §
										7-11-402(3): Fitch
					 Investor Services, Inc., Moody Investor Services, Mergent, Inc., and the OTCQB
					 and OTCQX markets maintained by OTC Markets Group Inc., and their successors
					 and/or assigns.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 05 - Securities › Part 3 - Issuance and Registration of Securities (230-RICR-50-05-3) › Section 230-RICR-50-05-3.11 - Unsolicited Order

Current through June 14, 2024
In order to qualify for the exemption provided under R.I.
					 Gen. Laws §
										7-11-402(4), the
					 broker-dealer must obtain from each customer a signed written acknowledgement
					 at the time the purchase price of the securities is paid that the purchase was
					 unsolicited and must retain a copy of each such acknowledgement of a period of
					 five (5) years; provided that no acknowledgement from the customer will be
					 required if the confirmation furnished the customer is clearly marked
					 "Unsolicited Order" or the broker-dealer furnishes the customer at any time
					 before or concurrently with the delivery of the confirmation a memorandum
					 stating that the transaction is based upon an unsolicited order and, in either
					 instance, the customer does not object to the designation of the trade as
					 "unsolicited" within fourteen (14) days of the customer's receipt of the
					 confirmation or memorandum.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 05 - Securities › Part 3 - Issuance and Registration of Securities (230-RICR-50-05-3) › Section 230-RICR-50-05-3.12 - Statutory Disqualification

Current through June 14, 2024
A. No exemption
				  under R.I. Gen. Laws §
										7-11-402(18) shall
				  be available for the securities of any issuer if any of the parties described
				  in Securities Act of 1933, Regulation A, Rule
				  17 C.F.R. §
											230.252(c), (d), (e), or
				  (f):
1. Has
				  filed a registration statement which is the subject of a currently effective
				  registration stop order entered pursuant to any state's securities law within
				  five (5) years prior to the filing of the notice required under this
				  exemption;
2. Has been convicted
				  within five (5) years prior to the filing of the notice required under this
				  exemption of any felony or misdemeanor in connection with the offer, purchase
				  or sale of any security or any felon involving fraud or deceit, including but
				  not limited to forgery, embezzlement, obtaining money under false pretenses,
				  larceny or conspiracy to defraud;
3. Is currently subject to any administrative
				  enforcement order or judgment entered by the Director within five years prior
				  to the filing of the notice required under this exemption or is subject to any
				  state's administrative enforcement order or judgment in which fraud or deceit,
				  including but not limited to making any untrue statement of material fact or
				  omitting to state any material fact, was found and the order or judgment was
				  entered within five (5) years prior to the filing of the notice required under
				  this exemption;
4. Is subject to
				  any state's administrative enforcement order or judgment which prohibits,
				  denies or revokes the use of any exemption from registration in connection with
				  the offer, purchase or sale of securities; or
5. Is currently subject to any order,
				  judgment or decree of any court of competent jurisdiction temporarily or
				  preliminary restraining or enjoining, or is subject to any order, judgment or
				  decree of any court of competent jurisdiction, permanently restraining or
				  enjoining, such party from engaging in or continuing any conduct or practice in
				  connection with the purchase of sale of any security or involving the making of
				  any false filing with the state entered within five (5) years prior to the
				  filing of the notice required under the exemption.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 05 - Securities › Part 3 - Issuance and Registration of Securities (230-RICR-50-05-3) › Section 230-RICR-50-05-3.13 - Exemption of Certain Securities from Registration

Current through June 14, 2024
A. The following shall be exempt from the
				  registration and filing requirements of R.I. Gen. Laws §§
										7-11-301 and
				  7-11-404:
1. All securities which are offered for sale
				  on or through the Internet when all of the following conditions are observed:
a. The Internet offer of the securities
				  indicate, directly or indirectly, that the securities are not being offered to
				  residents of the State of Rhode Island; and
b. The Internet offer of the securities is
				  not specifically directed to any person or persons in the State of Rhode Island
				  by, or on behalf of, the issuer of the securities; and
c. No sales of the insurer's securities are
				  made in the State of Rhode Island as a result of the Internet offering until
				  such time as the securities being offered have been properly registered under
				  the terms and provisions of RIUSA and the rules and regulations promulgated
				  thereunder.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 05 - Securities › Part 3 - Issuance and Registration of Securities (230-RICR-50-05-3) › Section 230-RICR-50-05-3.15 - Canadian Securities Exempt from Registration

Current through June 14, 2024
Offers and sales of any security effected by a
					 broker-dealer who is exempt from licensing under §
										1.5   of this Subchapter
					 are exempt from the registration requirements of R.I. Gen. Laws. §
										7-11-301 and the filing
					 requirements of R.I. Gen. Laws §
										7-11-404.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 05 - Securities › Part 3 - Issuance and Registration of Securities (230-RICR-50-05-3) › Section 230-RICR-50-05-3.16 - Consent to Service of Process

Current through June 14, 2024
Unless otherwise provided by rule or order of the Director,
					 the Uniform Consent to Service of Process (Form U-2) satisfies the requirements
					 of R.I. Gen. Laws §
										7-11-708, as does the post
					 September 1, 2016 Uniform Application to Register Securities (Form U-1).
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 10 - Franchises › Part 1 - Franchise Regulation (230-RICR-50-10-1) › Section 230-RICR-50-10-1.1 - Authority

Current through June 14, 2024
This Part is promulgated pursuant to R.I. Gen. Laws
					 §§
										19-28.1-6,
					 19-28.1-9,
					 19-28.1-27,
					 42-35-3 and
					 42-14-17.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 10 - Franchises › Part 1 - Franchise Regulation (230-RICR-50-10-1) › Section 230-RICR-50-10-1.2 - Scope

Current through June 14, 2024
This Part applies to franchises offered or sold in Rhode
					 Island pursuant to R.I. Gen. Laws §
										19-28.1-4.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 10 - Franchises › Part 1 - Franchise Regulation (230-RICR-50-10-1) › Section 230-RICR-50-10-1.3 - Purpose

Current through June 14, 2024
The purpose of this Part is to regulate franchise sales in
					 Rhode Island.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 10 - Franchises › Part 1 - Franchise Regulation (230-RICR-50-10-1) › Section 230-RICR-50-10-1.4 - Expiration and Renewal

Current through June 14, 2024
A. Exemption of a
				  franchise under the Franchise Investment Act shall expire three hundred and
				  sixty-five (365) calendar days after the notice is received by the Department
				  and the notice of exemption may be renewed annually thereafter.
B. Registration of a franchise under the
				  Franchise Investment Act shall expire three hundred and sixty-five (365)
				  calendar days from the initial effective date and may be renewed annually
				  thereafter.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 10 - Franchises › Part 1 - Franchise Regulation (230-RICR-50-10-1) › Section 230-RICR-50-10-1.5 - Fractional Franchise

Current through June 14, 2024
A. Any franchise
				  that meets all of the following criteria shall be referred to as a fractional
				  franchise and shall be exempt from registration requirements of R.I. Gen. Laws
				  §
										19-28.1-5 and the delivery
				  requirements of R.I. Gen. Laws §
										19-28.1-8 pursuant to the
				  authority granted in R.I. Gen. Laws §
										19-28.1-6(10).
B. A fractional franchise is a business or
				  other commercial entity purchased by a franchisee that has executed a licensing
				  agreement with a franchisor to conduct the business of the franchisor on the
				  premises of the franchisee subject to the following conditions:
1. The franchisee has two or more years'
				  experience in an established business of which the franchisee will become a
				  component;
2. The franchised
				  business will be operated from the same business location as the franchisee's
				  established existing business;
3.
				  The products or services offered by the franchised business will be
				  substantially similar to the existing products or services offered by the
				  franchise;
4. The parties
				  anticipate that the revenue from the franchise will not exceed twenty percent
				  (20%) of the franchisee's primary business operation in the first year; and
5. The franchisee is not
				  controlled by the franchisor.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 50 - Securities, Franchises and Charities › Subchapter 10 - Franchises › Part 1 - Franchise Regulation (230-RICR-50-10-1) › Section 230-RICR-50-10-1.6 - Severability

Current through June 14, 2024
If any provision of this Part or the application thereof to
					 any person or circumstance is held invalid or unconstitutional, the invalidity
					 or unconstitutionality shall not affect other provisions or applications of
					 this Part which can be given effect without the invalid or unconstitutional
					 provision or application, and to this end the provisions of this Part are
					 severable.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 80 - Marijuana › Subchapter 05 - Medical Marijuana › Part 1 - Rules and Regulations Related to the Medical Marijuana Program Administered by the Office of Cannabis Regulation at the Department of Business Regulation › Section 230-RICR-80-05-1.2 - Compassion Center Application, Licensing and Renewals

Current through June 14, 2024
A. R.I. Gen. Laws §
										21-28.6-12(c)
				  authorizes DBR to promulgate regulations regarding compassion center
				  applications and licensure.
B.
				  Compassion Center Application Period and License Application Timeline
1. Applications for compassion centers may
				  only be submitted to DBR for consideration during an open application period
				  announced by DBR. Open application periods will only be announced upon the
				  availability of a compassion center license such as may be due to an expansion
				  in the limit of available licenses, the failure of a qualified applicant to be
				  selected through the application process as described in §
											1.2(E)(6)   of
				  this Part, or the failure of a selected applicant to satisfy licensing
				  requirement(s) of the Act or the DBR Regulations, or the event of the
				  revocation, relinquishment, or expiration without renewal of an existing
				  compassion center license, as provided in R.I. Gen. Laws §§
											21-28.6-12(b)(7)(ii),
				  21-28.6-12(b)(8),
				  and 21-28.6-12(d)(3).