reglab/statecodes huggingface dataset:
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:21 - Money transmission licenses › Section 20:07:21:02 - Annual renewal fee

Current through Register Vol. 51, page 10, July 15, 2024
The annual renewal fee for any person licensed under SDCL chapter 51A-17 is eight hundred dollars.
General Authority:
SDCL  51A-17-19.
Law Implemented:
SDCL  51A-17-19.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:22 - Trust companies › Section 20:07:22:01 - Supervision fee schedule

Current through Register Vol. 51, page 10, July 15, 2024
A state-chartered trust company shall pay an annual fee for supervision at the rate of seven cents per $10,000 of total assets under management, administration, or custody, as reported as of the end of December. However, the minimum annual fee is $3,750 and the maximum annual fee is $20,000 for private trust companies and the minimum annual fee is $4,500 and the maximum annual fee is $30,000 for public trust companies. Trust companies shall also pay the actual cost for each on-site examination and the additional supervision costs for any trust company operating under an enforcement action. For purposes of this section, the term enforcement action does not include a resolution adopted by a trust company to implement findings identified through an examination conducted by the division.
The division shall maintain on its website a separate fee calculator for public and private trust companies to be used for the purpose of calculating the annual supervision fee owed by each trust company. The formulas used to operate the fee calculator shall be available upon request.
General Authority:
SDCL  51A-2-36,  51A-6A-33.
Law Implemented:
SDCL  51A-6A-33.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:22 - Trust companies › Section 20:07:22:02 - Remittance

Current through Register Vol. 51, page 10, July 15, 2024
A state-chartered trust company shall remit the annual fee with the report of trust assets to the division within 30 days following December 31.
General Authority:
SDCL  51A-2-36,  51A-6A-33.
Law Implemented:
SDCL  51A-6A-33.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:22 - Trust companies › Section 20:07:22:03 - Private trust company defined

Current through Register Vol. 51, page 10, July 15, 2024
A private trust company is one that does not engage in trust company business with the general public or otherwise hold itself out as a trustee or fiduciary for hire by advertising, solicitation, or other means and instead operates for the benefit of a family or families, regardless of whether compensation is received or anticipated.
General Authority:
SDCL  51A-2-13.
Law Implemented:
SDCL  51A-6A-1.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:22 - Trust companies › Section 20:07:22:04 - Trust administration defined

Current through Register Vol. 51, page 10, July 15, 2024
For purposes of SDCL  51A-6A-11.1, trust administration in South Dakota means that at least three of the following are performed wholly or partly in South Dakota for the accounts under the management, administration, or custody of the trust company:
(1) Annual account reviews;
(3) Trust accountings;
(4) Account correspondence;
(5) Completing trust account tax returns;
(6) Distributing account statements; or
(7) Depositing uninvested customer funds into a bank chartered under SDCL Title 51A or another federally insured bank or credit union headquartered in this state or with a branch located in this state.
Notwithstanding the definition above, trust administration as set forth in SDCL  51A-6A-11.1(4)  may be satisfied by other means if the director determines the nature and degree of risks presented by the trust company are low based upon a review of the size, nature, and number of accounts administered by the trust company and the number of employees or persons performing services for the trust company in South Dakota.
If the size, risk profile, or rate of growth of a trust company changes, the director may, to the extent it is deemed necessary, require additional administration be performed in South Dakota to satisfy the requirement in SDCL  51A-6A-11.1(4)  as defined by this section.
General Authority:
SDCL  51A-6A-11.1.
Law Implemented:
SDCL  51A-6A-11.1,  55-3-39.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:23 - Mobile branch banks › Section 20:07:23:01 - Definitions

Current through Register Vol. 51, page 10, July 15, 2024
Terms defined in SDCL  51A-1-2 have the same meaning when used in this chapter. The use by a bank of a third party unaffiliated courier service does not constitute a mobile branch bank.
General Authority:
SDCL  51A-2-14(3)(4).
Law Implemented:
SDCL  51A-1-2(19),  51A-2-14(3)(4).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:23 - Mobile branch banks › Section 20:07:23:02 - Mobile branch banks requiring only notification to director

Current through Register Vol. 51, page 10, July 15, 2024
Any bank desiring to establish a mobile branch bank in the municipality in which the bank has an existing permanent bank or branch bank facility or in any county in this state that does not have a permanent bank or branch bank facility at the time the mobile branch bank is first established shall submit a letter of notice to the director that includes the following:
(1) Statement of the area in which the mobile branch bank will operate; and
(2) Statement describing the operation of the mobile branch bank.
General Authority:
SDCL  51A-2-14(3)(4).
Law Implemented:
SDCL  51A-1-2(19),  51A-2-14(3)(4).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:23 - Mobile branch banks › Section 20:07:23:03 - Mobile branch banks requiring application to director

Current through Register Vol. 51, page 10, July 15, 2024
Any bank desiring to establish a mobile branch bank outside the municipality in which the bank has an existing permanent bank or branch bank facility shall, prior to the establishment of such branch, file a written application with the director on forms provided by the division.
Any application filed with the director for the establishment of a mobile branch bank shall follow the application procedure established in SDCL  51A-2-16 and shall be evaluated according to the criteria in SDCL  51A-3-9.
General Authority:
SDCL  51A-2-14(3)(4).
Law Implemented:
SDCL  51A-1-2(19),  51A-2-14(3)(4),  51A-2-16,  51A-3-9.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:07 - BANKING › Chapter 20:07:23 - Mobile branch banks › Section 20:07:23:05 - Notice required to discontinue mobile branch banks

Current through Register Vol. 51, page 10, July 15, 2024
At least 30 days before terminating an existing mobile branch bank, the bank shall submit a letter of notice to the director that includes the following:
(1) Statement of the area which will no longer be served;
(2) Statement of the impact of the discontinuance of the mobile branch bank within the area previously served; and
(3) Statement of reasons for the termination of the mobile branch bank.
Any change in the locations to which a mobile vehicle travels is not the termination of an existing mobile branch bank for purposes of this section.
General Authority:
SDCL  51A-2-14(3)(4).
Law Implemented:
SDCL  51A-1-2(19),  51A-2-14(3)(4).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:03 - Broker-dealer and agent rules › Section 20:08:03:01 - Registration for broker-dealers, broker-dealer agents, and agents of the issuer

Current through Register Vol. 51, page 10, July 15, 2024
(1) Definitions:
(a) "Division" means the Division of Insurance, South Dakota Department of Labor and Regulation.
(b) "CRD" means the Central Registration Depository.
(c) "NASAA" means the North American Securities Administrators Association, Inc.
(d) "OSJ" means Office of Supervisory Jurisdiction as referenced in the FINRA Manual IM-1000-4 under Rule 3010 and defined in Rule 3010(g)(1).
(e) "FINRA" means the Financial Industry Regulatory Authority, Inc.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:03 - Broker-dealer and agent rules › Section 20:08:03:02 - Record keeping requirements for broker-dealers

Current through Register Vol. 51, page 10, July 15, 2024
(1) Unless otherwise provided by order of the SEC, each broker-dealer registered or required to be registered under SDCL chapter 47-31 B shall make, maintain and preserve books and records in compliance with the SEC rules 17a-3 (17 C.F.R. §
										240.17a-3), 17a-4 (17 C.F.R. §
										240.17a-4), 15g-9 (17 C.F.R. §
										240.15g-9) and 15c2-11 ( 17 C.F.R. § 240.15c2-11 ), which are adopted and incorporated by reference.
(2) To the extent that the SEC promulgates changes to the above referenced rules, broker-dealers in compliance with such rules as amended are not subject to enforcement action by the division for violation of this rule to the extent that the violation results solely from the broker-dealer's compliance with the amended rule.
General Authority:
SDCL  47-31B-411(c)(1),  47-31B-605(a)(1),  47-31B-605(b).
Law Implemented:
SDCL  47-31B-103,  47-31B-411(c).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:03 - Broker-dealer and agent rules › Section 20:08:03:03 - Broker-dealer minimum financial requirements

Current through Register Vol. 51, page 10, July 15, 2024
(1) Each broker-dealer registered or required to be registered under SDCL chapter 47-31 B, shall comply with SEC Rules 15c3-1 ( 17 C.F.R. § 240.15c3-1 ), 15c3-2 ( 17 C.F.R. § 240.15c3-2 ), and 15c3-3 ( 17 C.F.R. § 240.15c3-3 ), which are adopted and incorporated by reference.
(2) Each broker-dealer registered or required to be registered under SDCL chapter 47-31 B shall comply with SEC Rule 17a-11 (17 C.F.R §. 240.17a-11) and shall file with the division upon request copies of notices and reports required under SEC Rules 17a-5 (17 C.F.R. §
										240.17a-5), 17a-10 (17 C.F.R. §
										240.17a-10), and 17a-11 (17 C.F.R. §
										240.17a-11), which are adopted and incorporated by reference.
(3) To the extent the SEC promulgates changes to the above referenced rules, broker-dealers in compliance with such rules as amended are not subject to enforcement action by the division for violation of this rule to the extent that the violation results solely from the broker-dealer's compliance with the amended SEC rule.
(4) Financial Reports: Broker-dealer financial reports do not need to be filed with the division unless requested by the director.
General Authority:
SDCL  47-31B-411(a),  47-31B-605(a)(1),  47-31B-605(b),  47-31B-605(c).
Law Implemented:
SDCL  47-31B-103,  47-31B-411.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:03 - Broker-dealer and agent rules › Section 20:08:03:04 - Net capital requirements of broker-dealers

Current through Register Vol. 51, page 10, July 15, 2024
A broker-dealer registered or required to be registered under SDCL chapter 47-31 B shall have and maintain an adjusted net capital in compliance with Rule 15c3-1 ( 17 C.F.R. § 240.15c3-1 ) under the Securities Exchange Act of 1934.
General Authority:
SDCL  47-31B-605(a)(1),  47-31B-605(b).
Law Implemented:
SDCL  47-31B-103,  47-31B-411.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:03 - Broker-dealer and agent rules › Section 20:08:03:05 - Waiver of certain broker-dealer records and financial requirements

Current through Register Vol. 51, page 10, July 15, 2024
Upon written application, the director may waive the requirements of §§
									20:08:03:02, 20:08:03:03, and 20:08:03:04 either unconditionally or on specified terms and conditions, any broker-dealer applicant or registrant not registered with the United States Securities and Exchange Commission or a member of a self-regulatory organization, who satisfies the director that, because of the special nature of its business, its financial position and the safeguards it has established for the protection of customer funds and securities, it is not necessary in the public interest or for the protection of investors to subject the applicant or registrant to the provisions of §§
									20:08:03:02, 20:08:03:03, and 20:08:03:04.
General Authority:
SDCL  47-31B-605(a)(1),  47-31B-605(a)(3).
Law Implemented:
SDCL  47-31B-103,  47-31B-411.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:03 - Broker-dealer and agent rules › Section 20:08:03:07.01 - Certification and professional designations

Current through Register Vol. 51, page 10, July 15, 2024
(1) The use of a senior specific certification or designation by any person in connection with the offer, sale, or purchase of securities, or the provision 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 deemed to be a dishonest and unethical practice in the securities business within the meaning of SDCL  47-31B-412(d)(13). The prohibited use of such certifications or professional designation includes the following:
(a) 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;
(b) Use of nonexistent or self-conferred certification or professional designation;
(c) 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
(d) Use of a certification or professional designation that was obtained from a designating or certifying organization that:
(i) Is primarily engaged in the business of instruction in sales and/or marketing;
(ii) Does not have reasonable standards or procedures for assuring the competency of its designees or certificants;
(iii) Does not have reasonable standards or procedures for monitoring and disciplining its designees or certificants for improper or unethical conduct; or
(iv) Does not have reasonable continuing education requirements for its designees or certificants in order to maintain the designation or certificate.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:03 - Broker-dealer and agent rules › Section 20:08:03:08 - Written supervisory procedures

Current through Register Vol. 51, page 10, July 15, 2024
Each broker-dealer shall establish and keep current a set of written supervisory procedures and a system for applying such procedures, which may be reasonably expected to prevent and detect any violations of SDCL chapter 47-31 B and the rules and orders thereunder. The procedures shall include the designation by name or title of a number of supervisory employees reasonable in relation to the number of its registered agents, offices, and transactions in this state. A complete set of the procedures and system for applying them shall be kept and maintained at every office.
General Authority:
SDCL  47-31B-605(a)(1).
Law Implemented:
SDCL  47-31B-411(c).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:03 - Broker-dealer and agent rules › Section 20:08:03:09 - Copies of complaints to be filed with director

Current through Register Vol. 51, page 10, July 15, 2024
A broker-dealer shall file with the director a copy of any complaint related to its business transactions or operations in this state, which names the broker-dealer or any of its partners, officers, or agents as defendants in a civil or criminal proceeding or in an administrative or disciplinary proceeding by a public or private regulatory agency, within 20 days after the complaint is served on the broker-dealer. The broker-dealer shall file with the director a copy of any answer to the complaint filed by the broker-dealer within 10 days after it is filed. The broker-dealer shall file with the director a copy of any decision, order, or sanction made concerning the proceeding within 20 days after the decision, order, or sanction is entered.
General Authority:
SDCL  47-31B-605(a)(1).
Law Implemented:
SDCL  47-31B-411(c).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:03 - Broker-dealer and agent rules › Section 20:08:03:10 - Notice of transfer of control or of name change

Current through Register Vol. 51, page 10, July 15, 2024
A broker-dealer shall promptly file with the director a notice of transfer of control or change of name not less than 30 days before the date on which the transfer of control or change of name is to become effective. The director may permit a shorter notice period.
General Authority:
SDCL  47-31B-407(d),  47-31B-605(a)(1).
Law Implemented:
SDCL  47-31B-407(c),  47-31B-407(d).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:03 - Broker-dealer and agent rules › Section 20:08:03:11 - Notice of net capital deficiency

Current through Register Vol. 51, page 10, July 15, 2024
A broker-dealer shall file with the director an immediate notice whenever the net capital of the broker-dealer is less than is required in §
									20:08:03:04.
General Authority:
SDCL  47-31B-605(a)(1).
Law Implemented:
SDCL  47-31B-411(c).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:03 - Broker-dealer and agent rules › Section 20:08:03:13 - Notice of thefts required

Current through Register Vol. 51, page 10, July 15, 2024
Each broker-dealer shall give immediate notice to the director of the theft or mysterious disappearance of any securities or funds from any of its offices in this state, stating all material facts known concerning the theft or disappearance.
General Authority:
SDCL  47-31B-605(a)(1).
Law Implemented:
SDCL  47-31B-411(c).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:03 - Broker-dealer and agent rules › Section 20:08:03:14 - Broker-dealer conduct on the premises of financial institutions

Current through Register Vol. 51, page 10, July 15, 2024
(1) No broker-dealer may conduct broker-dealer services on the premises of a financial institution where retail deposits are taken unless the broker-dealer complies initially and continuously with the requirements set forth in FINRA Rule 3160.
(2) This section does not alter or abrogate a broker-dealer's obligations 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. These rules do not apply to broker-dealer services provided to nonretail customers.
(3) Definitions:
(a) For purposes of this section, the term 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 South Dakota.
(b) "Broker-dealer services" means the investment banking or securities business as defined in paragraph (u) of Article I of the By-Laws of FINRA.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:03 - Broker-dealer and agent rules › Section 20:08:03:15 - Cross-border exemptions from registration for broker-dealers and agents

Current through Register Vol. 51, page 10, July 15, 2024
(1) Broker-Dealer Exemption. A broker-dealer that is registered in Canada and who has no office or other physical presence in this state is exempted from broker-dealer registration pursuant to SDCL  47-31B-401(d), if the broker-dealer complies with the following conditions:
(a) Registered with or is a member of a self-regulatory organization in Canada, stock exchange in Canada, or the
Bureau des services financiers
;
(b) Maintains in good standing its provincial or territorial registration and its registration with or membership in a self-regulatory organization in Canada, stock exchange in Canada, or the
Bureau des services financiers
; and
(c) Effects or attempts to effect transactions in securities:
(1) With or for a person from Canada who is temporarily present in this state, with whom the Canadian broker-dealer had a bona fide broker-dealer-client relationship before the person entered the United States; or
(2) With or for a person from Canada who is present in this state, whose transactions are in a Canadian self-directed tax advantaged retirement account of which the person is the holder or contributor.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:03 - Broker-dealer and agent rules › Section 20:08:03:16 - Employee of the issuer exemption

Current through Register Vol. 51, page 10, July 15, 2024
An employee who represents an issuer and who effects transactions in the issuer's securities exempted by SDCL  47-31B-202(11)  and  47-31B-202(14)  is exempt from agent registration under SDCL  47-31B-402(a)  if the employee does not receive a commission or other remuneration for making offers or sales of the issuers securities.
For purposes of this rule, a managing member of a limited liability company or a general partner of the issuer, and officers and directors of the issuer, are deemed to be employees of the issuer.
General Authority:
SDCL  47-31B-102(2),  47-31B-402(b)(a)(9).
Law Implemented:
SDCL  47-31B-102(2),  47-31B-402(a)(9).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:03 - Broker-dealer and agent rules › Section 20:08:03:17 - Finders

Current through Register Vol. 51, page 10, July 15, 2024
(1) The term, agent, as defined in SDCL  47-31B-102(2), does not include a finder.
(2) The term, broker-dealer, as defined in SDCL  47-31B-102(4), does not include a finder.
(3) The term, finder, means a person who directly or indirectly locates, introduces, or refers any person to an issuer. A finder may not:
(a) Render any investment advice as to the advantages or disadvantages of entering into an investment;
(b) Participate in any presentations or negotiations regarding any material term of an investment;
(c) Receive compensation based on the amount of any investment made but may otherwise receive compensation, and the compensation may be contingent on a potential investor actually investing;
(d) Receive any compensation unless the amount of compensation is disclosed by the issuer to the investor prior to the sale of any security.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:03 - Broker-dealer and agent rules › Section 20:08:03:18 - Business brokers

Current through Register Vol. 51, page 10, July 15, 2024
(1) If a "business broker" as defined in subsection (2) below is involved in the sale of a business that results in a securities transaction, the business broker is exempt from registration as a broker-dealer and the agents for the business broker are exempt from registration as agents of the issuer if all the following conditions apply:
(a) In marketing a business, the business broker only advertises to potential buyers that the "business" is for sale;
(b) The business broker does not advise either the buyer or seller that the transaction be completed via a sale or purchase of securities;
(c) If the decision is made to conclude the sale of the business via a sale of securities, the sale is made by the buyer and seller or their advisors without the business broker's advice;
(d) After the time, if any, the decision is made that the sale transaction is a securities sale the business broker then has a limited role in the negotiations between or among the parties and merely facilitates the transmittal of information or documents between the buyer and seller, or their advisors;
(e) In no event does the business broker have the authority to make binding agreements on behalf of any party to a securities transaction;
(f) The business broker does not assess the value of any security or equity interest to be sold, but may assess the total value of the assets or the business to be sold as a going concern;
(g) The business broker does not assist the buyer in obtaining financing.
However, the business broker may provide uncompensated introductions to lending sources that the buyer may consider for the transaction. The business broker also may help in completing the paperwork associated with the loan applications for the buyer in order to assist in completing the transaction;
(h) The compensation to be paid to the business broker does not change regardless of the manner in which the sale is concluded (whether asset sale or the sale of securities);
(i) The business broker always advises potential buyers that the business broker does not and may not verify the information given to the business broker about the business;
(j) The business broker also advises potential buyers that the business broker does not make any representation about the accuracy of the information provided regarding any aspect of the business;
(k) The business sold is not a "shell" entity;
(l) The business broker does not handle the transfer of funds from the buyer to a seller, but may accept earnest money from a buyer for deposit with a third party escrow agent; and
(m) The business broker is always subject to the anti-fraud provisions of all state and federal securities acts.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:04 - Registration requirements and procedures › Section 20:08:04:115 - Registration of securities by qualification

Current through Register Vol. 51, page 10, July 15, 2024
(1) A person seeking to register a security by qualification shall file completed Forms U-1 and U-2 and pay the fee required in SDCL  47-31B-305(b).
(2) Prospectus requirements. As a condition of registration, a prospectus, offering circular, or similar document meeting the requirements of subdivision (3), (4), and (5) shall be sent or given to each person to whom an offer is made by or for the account of the issuer or any other person on whose behalf the offering is made, or by any underwriter or broker-dealer who is offering part of an unsold allotment or subscription as a participant in the distribution. The document shall be sent or given either before or concurrently with the earlier of any of the following:
(a) Any written offer made to the person, otherwise than by means of public advertising;
(b) Confirmation of any sale to the person;
(c) Payment pursuant to any sale to the person; or
(d) Delivery of the security pursuant to any sale to the person.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:04 - Registration requirements and procedures › Section 20:08:04:116 - Advertising

Current through Register Vol. 51, page 10, July 15, 2024
For purposes of SDCL  47-31B-301, an issuer or a selling security holder (and any person acting on behalf of either of them) that publishes through any medium a notice of a proposed offering to be registered under SDCL chapter 47-31 B is not deemed to offer its securities for sale through that notice if the notice meets the requirements as set forth in Reg. § 230.135 of the Securities Act of 1933. The advertisement does not need to be filed with the division.
General Authority:
SDCL  47-31B-301(2).
Law Implemented:
SDCL  47-31B-103,  47-31B-202(13).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:05 - Investment adviser rules › Section 20:08:05:14 - Investment adviser representative definitions

Current through Register Vol. 51, page 10, July 15, 2024
Notwithstanding SDCL  47-31B-102(16), the term "investment adviser representative" as it applies to a person who is employed by or associated with a federal covered investment adviser only includes an individual who has a "place of business" in this jurisdiction, as that term is defined in Part 275.203A-3(b) of the Investment Advisers Act of 1940 by the U.S. Securities and Exchange Commission, and who either:
(1) Is an "investment adviser representative" as that term is defined in Part 275.203A-3(a)(1) of the Investment Advisers Act of 1940 by the U.S. Securities and Exchange Commission; or
(2) Is not a "supervised person" as that term is defined in rules or regulations promulgated under Section 202(a)(25) of the Investment Advisers Act of 1940 by the U.S. Securities and Exchange Commission; and
solicits, offers or negotiates for the sale of or sells investment advisory services on behalf of a federal covered investment adviser.
General Authority:
SDCL  47-31B-605(a)(2).
Law Implemented:
SDCL  47-31B-103,  47-31B-404(a).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:05 - Investment adviser rules › Section 20:08:05:15 - Application for investment adviser and investment adviser representative registration

Current through Register Vol. 51, page 10, July 15, 2024
(1) Investment adviser initial application:
(a) The application for initial registration as an investment adviser pursuant to SDCL  47-31B-403(a)  shall be made by completing Form ADV (Uniform Application for Investment Adviser Registration) in accordance with the form instructions and by filing the form electronically with IARD. The application for initial registration shall also include the following:
(i) Proof of compliance by the investment adviser with the examination requirements of §
											20:08:05:27;
(ii) Such financial statements as set forth in §
											20:08:05:22, including a copy of the balance sheet for the last fiscal year, and if such balance sheet is as of a date more than 45 days from the date of filing of the application, an unaudited balance sheet is prepared as set forth in §
											20:08:05:22;
(iii) A copy of the surety bond required by §
											20:08:05:24, if applicable, shall be made available upon request of the director; and
(iv) The fee required by SDCL  47-31B-410(c).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:05 - Investment adviser rules › Section 20:08:05:16 - Notice filing requirements for federal covered investment advisers

Current through Register Vol. 51, page 10, July 15, 2024
The notice filing for a federal covered investment adviser pursuant to SDCL 47-31B-405(a) of the Act shall be filed electronically with IARD on an executed Form ADV [17 C.F.R. 279.1]  (Uniform Application for Investment Adviser Registration). A notice filing of a federal covered investment adviser shall be deemed filed when the fee required by SDCL 47-31B-410(e) and the Form ADV are filed electronically with and accepted by IARD on behalf of the state.
(1) Form ADV Part 2 (Uniform Requirements for the Investment Adviser Brochure and Brochure Supplements). The director 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 5 days of a request, Part 2 of Form ADV to the director. Because the director 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 director unless requested.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:05 - Investment adviser rules › Section 20:08:05:17 - Electronic filing with designated entity

Current through Register Vol. 51, page 10, July 15, 2024
The director designates the web-based Investment Adviser Registration Depository (IARD) to receive and store filings and collect related fees from investment advisers and investment adviser representatives on behalf of the director.
(1) Use of IARD. Unless otherwise provided, all investment adviser and investment adviser representative applications, amendments, reports, notices, related filings, and fees required to be filed with the director pursuant to the rules promulgated under SDCL chapter 47-31 B, shall be filed electronically with and transmitted to IARD. 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 electronically through IARD, a duly authorized officer of the applicant or the applicant himself or herself, as required, shall affix his or her electronic signature to the filing by typing his or her name in the appropriate fields and submitting the filing electronically to IARD. 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 electronically through IARD, a document is considered filed with the director when all fees are received and the filing is accepted by IARD on behalf of the state.
(c) Brochure supplements, updates, and amendments. An investment adviser must file electronically with the IARD Part 2B of Form ADV brochure supplements for each supervised person doing business in this state. Brochure supplements must be updated promptly whenever any information in them becomes materially inaccurate.
(d) All amendments to Part 1A of Form ADV and Part 2A of Form ADV shall be filed electronically with the IARD, unless you have received a continuing hardship exemption under § 20:08:05:17(3)(d).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:05 - Investment adviser rules › Section 20:08:05:18 - IARD transition rule

Current through Register Vol. 51, page 10, July 15, 2024
(1) Electronic filing of Form ADV. Each investment adviser registered or required to be registered under SDCL chapter 47-31 B must resubmit its Form ADV electronically (if it has not previously done so) with IARD unless it has been granted a hardship exemption under §
									20:08:05:17(3).
(a) If the amendment to Form ADV is made after the effective date of § 20:08:05:18, or at an earlier date if an investment adviser has filed its Form ADV (or any amendments to Form ADV) electronically with IARD, the registrant must file amendments to Form ADV required by § 20:08:05:18  electronically with IARD, unless it has been granted a hardship exemption under §
										20:08:05:17(3).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:05 - Investment adviser rules › Section 20:08:05:19 - Withdrawal of investment adviser and investment adviser representative registration

Current through Register Vol. 51, page 10, July 15, 2024
(1) Withdrawal of investment adviser registration. The application for withdrawal of registration as an investment adviser pursuant to SDCL  47-31B-409 shall be completed by following the instructions on Form ADV-W (Notice of Withdrawal from Registration as Investment Adviser) and filed electronically upon Form ADV-W with IARD.
(2) Withdrawal of investment adviser representative registration. Pursuant to SDCL  47-31B-409, the withdrawal of registration of an investment adviser representative shall be made by application for withdrawal of registration by following the instructions on Form U5 (Uniform Termination Notice for Securities Industry Registration) and filed electronically with IARD within 30 days of the date of termination and in accordance with SDCL  47-31B-408.
General Authority:
SDCL  47-31B-408(a),  47-31B-409,  47-31B-605(b),  47-31B-608(c)(1) and (2).
Law Implemented:
SDCL  47-31B-408(a),  47-31B-409.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:05 - Investment adviser rules › Section 20:08:05:20 - Promptly remedied

Current through Register Vol. 51, page 10, July 15, 2024
For purposes of SDCL  47-31B-410(c), (d) and (e), an investment adviser, an investment adviser representative, and a federal covered investment adviser, respectively, will have promptly remedied a delay in payment or under payment of fees if the adviser or representative remits the fee payment to the director within ten business days of receipt of notification from the director of the delay or underpayment. If such payment is not received within the ten business day period, an investment adviser, an investment adviser representative, and a federal covered investment advisor will be found to have refused to pay the fee.
General Authority:
SDCL  47-31B-605(a)(1).
Law Implemented:
SDCL  47-31B-410(c), (d) and (e).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:05 - Investment adviser rules › Section 20:08:05:21 - Minimum financial requirements for investment advisers

Current through Register Vol. 51, page 10, July 15, 2024
An investment adviser registered or required to be registered under SDCL chapter 47-31 B who has custody of client funds or securities shall maintain at all times a minimum net worth of $35,000 except:
(1) An investment adviser having custody solely due to direct fee deduction and complying with the terms described under §
									20:08:05:25(7)  and related books and records, as described in §
									20:08:05:23, is not required to comply with the net worth or bonding requirements of § 20:08:05:21.
(2) An investment adviser having custody solely due to advising pooled investment vehicles and complying with the terms described under §
									20:08:05:25(8)  or 20:08:05:25(10)(c)  and related books and records, as described in §
									20:08:05:23, is not required to comply with the net worth or bonding requirements of § 20:08:05:21.
(3) An investment adviser registered or required to be registered under SDCL chapter 47-31 B who has discretionary authority over client funds or securities but does not have custody of client funds or securities shall maintain at all times a minimum net worth of $10,000.
(4) An investment adviser registered or required to be registered under chapter 47-31 B who accepts prepayment of more than $500 per client and six or more months in advance shall maintain at all times a positive net worth.
(a) Unless otherwise exempted, as a condition of the right to transact business in this state, every investment adviser registered or required to be registered under SDCL chapter 47-31 B shall by the close of business on the next business day notify the director if such investment adviser's net worth is less than the minimum required. After transmitting such notice, each investment adviser shall file by the close of business on the next business day a report with the director of its financial condition, including the following:
(i) A trial balance of all ledger accounts;
(ii) A statement of all client funds or securities which are not segregated;
(iii) A computation of the aggregate amount of client ledger debit balances; and
(iv) A statement as to the number of client accounts.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:05 - Investment adviser rules › Section 20:08:05:22 - Financial reporting requirements for investment advisers

Current through Register Vol. 51, page 10, July 15, 2024
Every registered investment adviser who 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 director an audited balance sheet as of the end of the investment adviser's most recent fiscal year.
(1) Each balance sheet filed pursuant to § 20:08:05:22  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 it, the basis of included securities, and any other explanations required for clarity.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:05 - Investment adviser rules › Section 20:08:05:23 - Recordkeeping requirements

Current through Register Vol. 51, page 10, July 15, 2024
Each investment adviser registered or required to be registered under chapter 41-31 B shall make and keep true, accurate, and current the following books, ledgers, and records:
(1) A journal or journals, including cash receipts and disbursements records, and any other records of original entry forming the basis of entries in any ledger.
(2) General and auxiliary ledgers (or other comparable records) reflecting asset, liability, reserve, capital, income and expense accounts.
(3) A memorandum of each order given by the investment adviser for the purchase or sale of any security, of any instruction received by the investment adviser from the client concerning the purchase, sale, receipt or delivery of a particular security, and of any modification or cancellation of any such order or instruction. The memoranda shall show the terms and conditions of the order, instruction, modification, or cancellation; shall identify the person connected with the investment adviser who recommended the transaction to the client and the person who placed the order; and shall show the account for which entered, the date of entry, and the bank, broker-dealer by or through whom executed where appropriate. Orders entered pursuant to the exercise of discretionary power shall be so designated.
(4) All check books, bank statements, canceled checks, and cash reconciliations of the investment adviser.
(5) All bills or statements (or copies of), paid or unpaid, relating to the investment adviser's business.
(6) All trial balances, financial statements, and internal audit working papers relating to the investment adviser's business.
(7) Originals of all written communications received and copies of all written communications sent by the investment adviser relating to:
(a) Any recommendation made or proposed to be made and any advice given or proposed to be given;
(b) Any receipt, disbursement or delivery of funds or securities; or
(c) The placing or execution of any order to purchase or sell any security, provided, however,
(i) That the investment adviser is not required to keep any unsolicited market letters and other similar communications of general public distribution not prepared by or for the investment adviser; and
(ii) That if the investment adviser sends any notice, circular, or other advertisement offering any report, analysis, publication, or other investment advisory service to more than ten persons, the investment adviser is not required to keep a record of the names and addresses of the persons to whom it was sent; except that if the notice, circular, or advertisement is distributed to persons named on any list, the investment adviser shall retain with the copy of the notice, circular, or advertisement a memorandum describing the list and its source.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:05 - Investment adviser rules › Section 20:08:05:24 - Bonding requirements for certain investment advisers

Current through Register Vol. 51, page 10, July 15, 2024
Any bond required by § 20:08:05:24  shall be issued by a company qualified to do business in this state in the form determined by the director and shall be subject to the claims of all clients of such investment adviser regardless of the client's state of residence.
(1) Every investment adviser registered or required to be registered under SDCL chapter 47-31 B having custody of or discretionary authority over client funds or securities shall be bonded in an amount determined by the director based upon the number of clients and the total assets under management of the investment adviser.
(2) Each investment adviser registered or required to be registered under chapter 47-31 B who has custody or discretion of client funds or securities who does not meet the minimum net worth standard as set forth in §
									20:08:05:21(1)  to (3), inclusive, shall be bonded in the amount of the net worth deficiency rounded up to the nearest $5,000.
(3) For purposes of § 20:08:05:24, the term, custody, is as defined in §
									20:08:05:25(11).
(4) An investment adviser that has its principal place of business in a state other than this state is exempt from the requirements of § 20:08:05:24(1)  and (2), if the investment adviser is registered or licensed as an investment adviser in the state where it has its principal place of business and is in compliance with such state's requirements relating to bonding.
General Authority:
SDCL  47-31B-411(e),  47-31B-605(a)(2).
Law Implemented:
SDCL  47-31B-411(e).
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:05 - Investment adviser rules › Section 20:08:05:25 - Custody requirements for investment advisers

Current through Register Vol. 51, page 10, July 15, 2024
It is unlawful and deemed to be a fraudulent, deceptive, or manipulative act, practice, or course of business for an investment adviser to have custody of client funds or securities unless:
(1) The investment adviser notifies the director promptly in writing that the investment adviser has or may have custody. Such notification is required to be given on Form ADV;
(2) Qualified custodian. A qualified custodian maintains those funds and securities:
(a) In a separate account for each client under the client's name; or
(b) In accounts that contain only the adviser's clients' funds and securities, under the adviser's name as agent or trustee for the clients.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:05 - Investment adviser rules › Section 20:08:05:26 - Investment adviser brochure

Current through Register Vol. 51, page 10, July 15, 2024
(1) General requirements: Unless otherwise provided in § 20:08:05:26, an investment adviser, registered or required to be registered pursuant to SDCL  47-31B-403 shall, in accordance with the provisions of § 20:08:05:26, furnish each advisory client and prospective advisory client with a written disclosure statement that complies with Part 2A and 2B of Form ADV [C.F.R. § 279.1] or such other information as the director may require.
(2) Delivery: An investment adviser, except as provided in § 20:08:05:26(2)(a), shall deliver the statement required by § 20:08:05:26  to an advisory client or prospective advisory client not less than 48 hours prior to entering into any investment advisory contract with such client or prospective client; or at the time of entering into any such contract, if the advisory client has a right to terminate the contract without penalty within five business days after entering into the contract.
(a) The delivery of the statement required by § 20:08:05:26(2)  need not be made in connection with entering into:
(i) An investment company contract; or
(ii) A contract for impersonal advisory services requiring a payment of less than $500.
South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:08 - SECURITIES › Chapter 20:08:05 - Investment adviser rules › Section 20:08:05:27 - Examination requirements

Current through Register Vol. 51, page 10, July 15, 2024
(1) Unless otherwise waived by the director, an investment adviser or an investment adviser representative shall take and pass within the two year period immediately preceding the date of the application:
(a) The Uniform Investment Adviser State Law Examination (S65); or
(b) The Uniform Combined State Law Examination (S66) and the General Securities Representative Examination (S7).