West Virginia Code of State Rules › Agency 111 - Securities Commission › Title 111 - LEGISLATIVE RULES SECURITIES COMMISSIONER › Series 111-01 - Security Rules And Regulations › Section 111-1-13 - Licensing of investment advisers

Current through Register Vol. XLI, No. 28, July 12, 2024
Each of the rules in this section (13 through 13.5) is a
				  legislative rule, and is adopted pursuant to the provisions of section four
				  hundred twelve, article four, chapter thirty-two, of the Code, and sections two
				  hundred one, two hundred two, two hundred three and two hundred four, article
				  two, chapter thirty-two, of the Code, and each relates to sections two hundred
				  one, two hundred two, two hundred three and two hundred four, article two,
				  chapter thirty-two of the Code.
13.1.
				Licensing procedure.
(1) Applications for
				initial and renewal licenses and qualifications of investment advisers and
				their representatives shall be filed as prescribed by the Commissioner in
				Section 11.2(b)(4) of these rules.
(2) Each applicant for an initial license as
				an investment adviser or for qualification as an investment adviser
				representative is required to pass a written examination prescribed by the
				Commissioner, unless the requirement is waived under Subsection (3) of this
				section. The examination shall relate to chapter thirty-two of the Code, the
				rules of the Commissioner thereunder, the applicable federal securities laws
				and rules of the SEC thereunder, general matters concerning the securities
				business and such other matters as the Commissioner may determine. The
				Commissioner may prescribe different examinations for different classes of
				applicants. Evidence of passing such examinations must be submitted to the
				Commissioner prior to approval of registration.
(3) The Commissioner may waive, in whole or
				in part, the examination requirement for:
(a)
				Any applicant upon receipt of evidence of satisfactory completion, with a
				passing grade of at least seventy percent (70%), of a comparable examination,
				administered by a national securities exchange, the NASD or the SEC;
(b) Any applicant for qualification as an
				investment adviser representative, if any undertaking satisfactory to the
				Commissioner is submitted setting forth how the agent will be adequately
				supervised, and the qualification of the representative is appropriately
				limited;
(c) Any applicant who,
				within two (2) years prior to the date the application is filed, has been
				licensed or qualified under chapter thirty-two of the Code;
(d) Any person by order of the Commissioner
				under such conditions as the Commissioner may prescribe.
(4) Prior to issuance of a license as an
				investment adviser, at least one (1) employee of the investment adviser must be
				designated in the license application to act in a supervisory capacity and be
				qualified as an investment adviser representative for the investment adviser,
				and must pass a written supervisory examination required by the Commissioner
				unless that requirement is waived under Subsection (3) of these
				rules.
(5) Any application for
				registration which is not completed or withdrawn within four (4) months from
				the date it is initially received may be deemed materially incomplete under
				section two hundred four, article two, chapter thirty-two of the Code, and the
				Commissioner may enter an order denying the effectiveness of such
				application.
(6) Every investment
				adviser whose principal office is located in this State shall have at least one
				(1) person qualified as an investment adviser representative employed on a
				full-time basis at its principal office.