North Carolina Administrative Code

18 NCAC 06A .1317 AMENDMENT OF FILINGS Where any information in or exhibits attached to a registration statement is amended in any way subsequent to the filing of such statement, the applicant shall file with the administrator in a timely fashion a copy of such registration state…

18 NCAC 06A .1318 AUTOMATIC WITHDRAWAL OF APPLICATION FOR REGISTRATION Where an application for registration of a security has remained pending for at least one year following the date of its filing, and the delay in completion of its examination by the administrator is due to a …

18 NCAC 06A .1319 required disclosures: viatical settlement contracts (a) Disclosures Prior to Payment of Consideration. On or before the date the viatical settlement purchaser remits consideration pursuant to the purchase agreement, the purchaser shall be provided with the follo…

18 NCAC 06A .1320 VIATICAL SETTLEMENT CONTRACT SUITABILITY REQUIREMENTS (a) Suitability Standards. Sales of viatical settlement contracts may be made only to either accredited investors as defined in 17 C.F.R. 230.501(a), (and as subsequently amended) or to qualified institutiona…

section .1400 - REGISTRATION OF DEALERS AND SALESMEN 18 NCAC 06A .1401 APPLICATION FOR REGISTRATION OF DEALERS (a) The application for registration as a dealer shall contain the following: (1) an executed Uniform Application for Registration as a Dealer (Form BD) and the appropri…

18 NCAC 06A .1402 APPLICATION FOR REGISTRATION OF SALESMEN (a) The application for registration as a salesman shall contain the following: (1) an executed Uniform Application for Securities and Commodities Industry Representative and/or Agent (Form U-4) or the appropriate success…

18 NCAC 06A .1403 TERMINATION OF REGISTRATION OF DEALER (a) When a dealer seeks to terminate registration, notice shall be filed with the administrator on the Uniform Notice of Termination of a Broker-Dealer (Form BDW) or the appropriate successor form accompanied by any outstand…

18 NCAC 06A .1404 CHANGE IN NAME OF DEALER Where only a change in the name of the dealer applicant or registrant occurs, an amended Form BD shall be filed with the administrator together with any amendments to the organizational documents, or accompanying letters of explanation, …

18 NCAC 06A .1405 DEALER MERGER/CONSOLIDATION/ACQUISITION/SUCCESSION (a) When there is a merger, consolidation, acquisition, succession, or other fundamental change the surviving or new entity shall file with the administrator, prior to such fundamental change, an amended Form BD…

18 NCAC 06A .1406 EXPIRATION AND RENEWAL OF DEALER REGISTRATION (a) A dealer registration shall expire on December 31 of each year unless timely renewed. (b) A NASD member firm shall renew according to NASAA/NASD Central Registration Depository procedures. (c) A non-NASD member f…

18 NCAC 06A .1407 EXPIRATION AND RENEWAL OF SALESMAN'S REGISTRATION A salesman's registration shall expire on December 31 of each year unless renewed. A dealer shall file the following at least 15 days before the expiration date to renew its salesmen's registration: (1) Dealers t…

18 NCAC 06A .1408 TERMINATION OF SALESMAN'S REGISTRATION (a) When a salesman withdraws, cancels or otherwise terminates registration, the dealer for which the salesman is registered shall file such information, as follows: (1) A Uniform Termination Notice For Securities Industry …

18 NCAC 06A .1409 TRANSFER OF SALESMAN'S REGISTRATION History Note: Authority G.S. 78A-36(b); 78A-49(a); Eff. April 1, 1981; Amended Eff. November 1, 1982; Legislative Objection Lodged Eff. February 1, 1983; Curative Amended Eff. February 1, 1983; Amended Eff. September 1, 1995; …

18 NCAC 06A .1410 MINIMUM FINANCIAL REQUIREMENTS FOR DEALERS (a) Each dealer registered or required to be registered under this Act shall comply with SEC Rules 15c3-1, 15c3-2, and 15c3-3 (17 C.F.R. 240.15c3-1, 17 C.F.R. 240.15c3-2, and 17 C.F.R. 240.15c3-3), as amended from time …

18 NCAC 06A .1411 RECORD KEEPING REQUIREMENTS FOR DEALERS (a) Unless otherwise provided by order of the Securities and Exchange Commission, each dealer registered or required to be registered under this Act shall make, maintain and preserve books and records in compliance with U.…

18 NCAC 06A .1412 FINANCIAL STATEMENTS Each dealer registered or required to be registered under this Act shall comply with SEC Rule 17a-11 (17 C.F.R. 240.17a-11), as amended from time to time, and shall file with the Administrator upon request copies of notices and reports requi…

18 NCAC 06A .1413 SALESMAN EXAMINATION REQUIRED (a) Every application for registration as a salesman shall show evidence of a minimum passing grade of seventy percent on either: (1) the Uniform Securities Agent State Law Examination (USASLE - Series 63); or (2) both the Uniform C…

18 NCAC 06A .1414 DISHONEST/UNETHICAL PRACTICES OF DEALERS AND SALESMEN (a) All dealers and salesmen shall observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business and shall give particular attention to any conflicts o…

18 NCAC 06A .1415 REGISTRATION OF PARTNERS/EXECUTIVE OFFICERS/DIRECTORS (a) Any partner, executive officer, director, or a person occupying a similar status or performing similar functions who represents a registered dealer in effecting or attempting to effect purchases or sales …

18 NCAC 06A .1416 REPORTING REQUIREMENTS OF DEALERS AND SALESMEN (a) All bankruptcies of dealers or salesmen registered with the Securities Division must be reported to the administrator within 30 days after the filing of the petition for bankruptcy. (b) All arbitrations involvin…

18 NCAC 06A .1417 APPLICATION FOR LIMITED REGISTRATION OF CANADIAN SECURITIES DEALERS AND SALESMEN (a) An applicant for limited registration as a dealer pursuant to G.S. 78A-36.1 (the "Dealer") shall file the following with the Administrator: (1) a representation that the Dealer …

SECTION .1500 - MISCELLANEOUS PROVISIONS 18 NCAC 06A .1501 RESCISSION OFFERS (a) All rescission offers under G.S. 78A-56(g) shall be typed or printed and shall be captioned in bold print or type "Rescission Offer." Offers must set forth in bold type the name of the security with …

18 NCAC 06A .1502 APPLICATION TO EXCHANGE SECURITIES (a) The application and all accompanying documents shall be typed or printed and submitted to the administrator in duplicate. The application shall be signed and dated by the applicant or by a person authorized to act in the ap…

18 NCAC 06A .1503 FORM OF CONSENT TO SERVICE OF PROCESS If the filing of a consent to service of process is required by statute or rule, the consent shall name the Secretary of State as service agent and shall be filed using the Uniform Consent to Service of Process (Form U-2) an…

18 NCAC 06A .1504 REQUEST FOR INTERPRETATIVE OPINIONS: NO-ACTION LETTERS (a) Requests for interpretative opinions and "no-action" letters shall be directed to the administrator and shall contain the following: (1) specific facts surrounding the proposed transaction in letter form…

18 NCAC 06A .1505 LEGENDS REQUIRED (repealed) History Note: Authority G.S. 78A-10(a); 78A-17(9)(a); 78A-49(b); Eff. April 1, 1981; Repealed Eff. January 1, 1984.

18 NCAC 06A .1506 PUBLIC INFORMATION (repealed) History Note: Authority G.S. 78A-46(a); 78A-49(a); 78A-49(g); 78A-50(c); 132-1.1; Eff. April 1, 1981; Amended Eff. January 1, 1984; Repealed Eff. August 1, 1998.

18 NCAC 06A .1507 IMPLICATIONS OF REGISTRATION OR EXEMPTION The filing of an application for registration, the fact an application has been filed, or the fact a security is effectively registered does not constitute a finding that any document filed under this Chapter is true, co…

18 NCAC 06A .1508 FAILURE TO FURNISH INFORMATION Failure to furnish requested information or evidence of compliance and/or the failure of any issuer, dealer, salesman, or interested person to comply with any rule or order: (1) May result in an application for registration being d…

18 NCAC 06A .1509 FORMS (repealed) History Note: Authority G.S. 78A-49; Eff. April 1, 1981; Amended Eff. September 1, 1990; October 1, 1988; January 1, 1984; Temporary Amendment Eff. October 1, 1997; Repealed Eff. August 1, 1998.

18 NCAC 06A .1510 LIMITED LIABILITY COMPANY MEMBERSHIP INTERESTS AS SECURITIES (a) Membership interests, as defined in G.S. 57C-1-03(15), in a limited liability company shall be presumed to be securities within the meaning of G.S. 78A-2(11) in either of the following circumstance…

18 NCAC 06A .1605 REPORTING REQUIREMENT/TERMINATION/QUALIFIED INVEST (repealed) History Note: Filed as a Temporary Rule Eff. January 1, 1988 For a Period of 180 Days to Expire on June 29, 1988; Authority G.S. 105-163.013(a); Eff. March 1, 1988; Repealed Eff. March 1, 1996.

18 NCAC 06A .1606 REPORTING REQUIREMENT/TERMINATION/QUALIFIED INVEST (repealed) History Note: Filed as a Temporary Rule Eff. January 1, 1988 for a Period of 180 Days to Expire on June 29, 1988; Authority G.S. 105-163.013; Expired Eff. March 1, 1988.

18 NCAC 06A .1607 FORMS History Note: Authority G.S. 105-163.013(d); Eff. September 1, 1990; Amended Eff. March 1, 1996; Expired Eff. January 1, 2017 pursuant to G.S. 150B-21.3A.

SECTION .1700 - REGISTRATION OF INVESTMENT ADVISERS AND INVESTMENT ADVISER REPRESENTATIVES 18 NCAC 06A .1701 DEFINITIONS For purposes of Chapter 78C of the North Carolina General Statutes and Sections .1700 and .1800 of these Rules, the following definitions shall apply: (1) "Acc…

18 NCAC 06A .1702 APPLICATION FOR INVESTMENT ADVISER REGISTRATION/NOTICE FILING FOR INVESTMENT ADVISER COVERED UNDER FEDERAL LAW (a) The application for initial registration as an investment adviser pursuant to Section 78C-17(a) of the Act shall be made by completing Form ADV (Un…

18 NCAC 06A .1703 APPLICATION/INVESTMENT ADVISER REPRESENTATIVE REGISTRATION (a) The application for initial registration as an investment adviser representative pursuant to Section 78C-17(a) of the Act shall be made by completing Form U-4 (Uniform Application for Securities Indu…

18 NCAC 06A .1704 MINIMUM FINANCIAL REQUIREMENTS FOR INVESTMENT ADVISERS (a) Unless an investment adviser posts a bond pursuant to Rule .1705, an investment adviser registered or required to be registered under the Act who has custody of client funds or securities shall maintain …

18 NCAC 06A .1705 BONDING REQUIREMENTS FOR CERTAIN INVESTMENT ADVISERS (a) Every investment adviser having custody of or discretionary authority over client funds or securities shall be bonded in an amount of not less than thirty-five thousand dollars ($35,000.00) by a bonding co…

18 NCAC 06A .1706 RECORD-KEEPING REQUIREMENTS FOR INVESTMENT ADVISERS (a) Except as otherwise provided in Paragraph (j) of this Rule, every investment adviser registered or required to be registered under the Act shall make and keep true, accurate and current the following books,…

18 NCAC 06A .1707 INVESTMENT ADVISER BROCHURE RULE (a) General Requirements. Unless otherwise provided in this Rule, an investment adviser, registered or required to be registered pursuant to Section 78C-16 of the Act, shall offer and deliver to each advisory client and prospecti…

18 NCAC 06A .1708 FINANCIAL REPORTING REQUIREMENTS FOR INVESTMENT ADVISERS (a) Every registered investment adviser who has custody of client funds or securities or who requires payment of advisory fees six months or more in advance and in excess of five hundred dollars ($500.00) …

18 NCAC 06A .1709 EXAM REQUIRE/INVESTMENT ADVISERS: REPRESENTATIVES (a) Examination Requirements. A person applying to be registered as an investment adviser or investment adviser representative under the Investment Advisers Act shall provide the Administrator with proof that he …

18 NCAC 06A .1710 TERMINATION/WITHDRAWAL/INVESTMENT ADVISER REGISTRATIONS (a) Investment advisers. The application for withdrawal of registration as an investment adviser pursuant to Section 78C-19(e) of the Act shall be completed by following the instructions on Form ADV-W (Noti…

18 NCAC 06A .1711 TRANSFER/INVESTMENT ADVISER REPRESENTATIVE'S REGISTRATION History Note: Authority G.S. 78C-16(a); 78C-16(b); 78C-17(a); 78C-17(b); 78C-20: 78C-30(a); 78C-30(b); Temporary Rule Eff. January 2, 1989 for a Period of 180 Days to Expire on June 30, 1989; Eff. Februar…

18 NCAC 06A .1712 CHANGE OF NAME OF INVESTMENT ADVISER (repealed) History Note: Authority G.S. 78C-17(c); 78C-18(d); 78C-30(a)(b); Temporary Rule Eff. January 2, 1989 for a period of 180 days to expire on June 30, 1989; Eff. February 1, 1989; Temporary Amendment Eff. October 1, 1…

18 NCAC 06A .1713 INVEST ADVISER MERGER/CONSOLIDATION/ACQUISITION/SUCCESSION (a) When there is a merger, consolidation, acquisition, succession, or other similar fundamental change in the ownership of a registered investment adviser, the acquiring or successor entity shall file a…

18 NCAC 06A .1714 REGISTRATION OF PARTNERS/EXECUTIVE OFFICERS/DIRECTORS (repealed) History Note: Authority G.S. 78C-16(a)(b); 78C-17(a); 78C-18(b)(d); 78C-19(a); 78C-30(a)(b); Temporary Rule Eff. January 2, 1989, for a period of 180 days to expire on June 30, 1989; Eff. February …

18 NCAC 06A .1715 INVESTMENT ADVISER REGISTRATION DEPOSITORY (a) 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 Administrator p…

18 NCAC 06A .1716 TRANSITION SCHEDULE FOR CONVERSION TO IARD History Note: Authority G.S. 78C-20; 78C-30; Temporary Adoption Eff. January 14, 2002; Eff. April 1, 2003; Expired Eff. January 1, 2017 pursuant to G.S. 150B-21.3A.