District of Columbia Administrative Code

101 INTERNET COMMUNICATIONS 101.1 Broker-dealers and agents who use the Internet to distribute information on available products and services through communications made on the Internet directed generally to anyone having access to the Internet, and transmitted through Internet c…

102 BROKER-DEALER AND AGENT REGISTRATION AND LICENSING 102.1 Except as otherwise provided in § 102.3, an application for an initial or renewal license as a broker-dealer or agent, pursuant to Section 203(a) (D.C. Register at 47 DCR 7846) of the Act or a successor's license as a b…

103 EXAMINATIONS 103.1 Each person applying for a license as a sole proprietor broker-dealer or as an agent shall be required to take the appropriate examination for that category. Examinations designated as appropriate for a category by FINRA shall be deemed appropriate for the …

104 FILING AND TRANSFER PROCEDURES 104.1 All relevant time periods in the Act for processing of filings will begin running on the first business day after the date the document is received. 104.2 Any electronic method acceptable to the Director of the Securities Bureau ("Director…

105 INCOMPLETE OR DEFICIENT APPLICATIONS 105.1 An application for license or a renewal as an agent or broker-dealer shall be deemed incomplete for purposes of Section 203 of the Act (D.C. Register at 47 DCR 7846) if it omits required documents or material facts. 105.2 If the Dire…

106 REAPPLICATION FOR AN AGENT OR BROKER-DEALER LICENSE 106.1 An agent or broker-dealer applicant whose application was denied under Section 207 of the Act (D.C.Official Code § 31-5602.07; D.C. Register at 47 DCR 7849) may not reapply for licensing until one (1) year after the in…

107 TERMINATION AND WITHDRAWAL OF REGISTRATION AS AN AGENT OF A BROKER-DEALER 107.1 Every broker-dealer shall promptly file with the Department, through the CRD on From U-5, a notice of termination of employment of any person registered in the District as an agent with such broke…

108 [RESERVED] SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001); as amended by Final Rulemaking pub…

109 [RESERVED] SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001); as amended by Final Rulemaking pub…

110 RATIO OF AGGREGATE INDEBTEDNESS TO NET CAPITAL 110.1 No broker-dealer licensed or required to be licensed under the Act shall permit its aggregate indebtedness to all persons to exceed the ratio of its net capital as set forth in Rule 15c3-1, as amended, (§ 240.15c3-1 of 17 C…

111 MINIMUM NET CAPITAL 111.1 Each broker-dealer licensed or required to be licensed under the Act shall have and maintain minimum net capital as required by Rule 15c3-1, as amended, (§ 240.15c3-1 of 17 CFR 217) under the Securities Exchange Act of 1934. 111.2 For the purposes of…

112 SURETY BOND 112.1 Each agent of an issuer shall, as set forth in this section, post on the prescribed form, a surety bond issued by a corporate surety company licensed to do business in the District. 112.2 Each agent of an issuer licensed or applying for licensing under the A…

113 CONSENT TO SERVICE OF PROCESS Pursuant to Section 706 of the Act (D.C. Official Code § 31-5607.06; D.C. Register at 47 DCR 7883), each broker-dealer and each agent shall file with its initial application for license an irrevocable consent to service of process on the form pro…

114 FILING OF A FINANCIAL STATEMENT 114.1 Each licensed broker-dealer shall annually file with the Department, or, subject to the conditions set forth in § 114.2 of this section, with the Commissioner, on a calendar or fiscal year basis, a financial report (1) audited by an indep…

115 QUALIFICATIONS OF ACCOUNTANTS 115.1 The Commissioner shall not recognize any person as a certified public accountant who is not duly registered and in good standing under the laws of his or her place of residence or principal office. 115.2 The Commissioner shall not recognize…

116 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

117 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

118 FINANCIAL AND DISCIPLINARY INFORMATION THAT BROKER-DEALERS MUST DISCLOSE TO CLIENTS 1818.1 A broker-dealer shall promptly disclose in writing the financial and disciplinary history of an agent employed or associated with the broker-dealer upon the request of a current or pros…

119 PRACTICES DEEMED UNETHICAL OR DISHONEST FOR BROKER-DEALERS AND AGENTS 119.1 Pursuant to the authority of Section 207(a)(9) of the Act (D.C. Register at 47 DCR 7851), each broker-dealer and agent registered in the District is required to observe high standards of commercial ho…

120 RECORDKEEPING REQUIREMENTS 120.1 Any broker-dealer maintaining books and records pursuant to SEC orFINRA rules shall be deemed to be in compliance with this section. Any broker-dealer not in compliance with SEC or NASDR books and records rules shall make and keep current book…

121 EMPLOYMENT RECORDS 121.1 Any broker-dealer maintaining employment records pursuant to SEC or FINRA rules shall be deemed to be in compliance with this section. Any broker-dealer not in compliance with SEC or FINRA employment records rules shall make and keep employment record…

122 CUSTOMER RECORDS AND COMPLAINTS 122.1 Any broker-dealer maintaining customer records and complaints pursuant to SEC or FINRA rules shall be deemed to be in compliance with this section. Any broker-dealer not in compliance with SEC or FINRA customer records and complaints reco…

123 PRESERVATION OF RECORDS 123.1 Each broker-dealer subject to § 120.1 shall preserve for a period of not less than six (6) years, the first two (2) years in an easily accessible place, all records required to be made or maintained pursuant to §§ 120.2, 120.3, 120.4, 120.6, 122.…

124 EXAMINATION PROCEDURES AND FEES 124.1 The Commissioner may make a periodic examination of broker-dealers and may charge a reasonable fee for the examination, consistent with these regulations. 124.2 When making any examination under these regulations, the Commissioner may ret…

125 NO ACTION AND OPINION LETTERS 125.1 Upon written request for a statement of the Department's position on the applicability of enforcement actions contemplated under the Act, the Director, in his or her discretion, may honor the requests by issuing a no action letter or interp…

126 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

127 BACKGROUND CHECK REQUIREMENT 127.1 Each applicant applying for an initial license or registration; or person going from an inactive status to active status as an agent, broker-dealer, investment adviser, or investment adviser representative, shall obtain a criminal background…

128 CONFIDENTIALITY 128.1 All fingerprints and resulting criminal record information obtained by the Commissioner or his or her designee pursuant to D.C. Official Code § 31-632 shall be treated as confidential records by the Department of Insurance, Securities, and Banking. Confi…

129 FINGERPRINT REQUIREMENT 129.1 Each applicant applying for an initial license, or who is going from inactive to active status as an agent, broker-dealer, investment adviser, or investment adviser representative, shall obtain a criminal background check and shall be subject to …

130 FEES 130.1 The filing fees shall be as follows: For initial and renewal licenses of each broker-dealer, the fee shall be two hundred and fifty dollars ($ 250); For initial and renewal application as an investment adviser, the fee shall be two hundred and fifty dollars ($ 250)…

131 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

132 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

133 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

134 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

135 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

136 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

137 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

138 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

139 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

140 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

141 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

142 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

143 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

144 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

145 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

146 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

147 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

148 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

149 RESERVED SOURCE: Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001).

150 NOTICE FILING FOR FEDERAL COVERED ADVISERS AND HEDGE FUND ADVISERS 150.1 Each federal covered adviser required to provide an initial notice or a renewal notice to the Commissioner pursuant to § 203(d) and (e) of the Act (D.C. Register at 47 DCR 7846) shall file the following …