Oregon Administrative Code

441-175-0080 Applications for Licensing of Broker-Dealers (1) An applicant for licensing as a FINRA broker-dealer must submit to the FINRA/CRD: (a) A completed Form BD; (b) A broker-dealer licensing fee as set in OAR 441-175-0002; (c) At least one completed Form U-4 pursuant to O…

441-175-0085 Limited Licensing of Canadian Broker-Dealers and Salespersons (1) A broker-dealer that is resident in Canada and has no office or other physical presence in this state may, provided the broker-dealer is licensed in accordance with this rule, effect transactions in se…

441-175-0100 Applications for Licensing of Investment Advisers (1) An applicant for licensing as a state investment adviser must apply through the IARD and the director. (2) An applicant must submit to the IARD: (a) A completed Form ADV, including Parts 1 and 2 of Form ADV; (b) A…

441-175-0105 Material Changes, Amendments and Notice of Civil and Criminal Actions (1) A broker-dealer or state investment adviser applicant or licensee must file an amendment to its application and a broker-dealer, state or federal covered investment adviser, must file an amendm…

441-175-0110 Surety Bond; Letter of Credit (1) Every applicant for a license as an Oregon based state investment adviser, must file with the director a surety bond as specified in section (4) of this rule or a letter of credit as specified in section (5) of this rule. (2) Every p…

441-175-0120 Licensing of Salespersons or Representatives to Non-FINRA Broker-Dealers, State or Federal Covered Investment Advisers, Issuers and Owners of Securities (1) For purposes of ORS 59.175, all salespersons or investment adviser representatives, except salespersons desiri…

441-175-0130 Licensing of Salespersons to FINRA Broker-Dealers (1) For purposes of ORS 59.175, all FINRA salespersons will be eligible for automatic licensing as provided in this rule if: (a) The salesperson is licensed by the FINRA to a broker-dealer who is a member in good stan…

441-175-0140 Disqualification from Automatic Licensing (1) For purposes of this rule, principal means a person who is engaged in the management of an enterprise including supervision, solicitation, conduct of the enterprise, or training of persons associated with the enterprise. …

441-175-0150 Termination or Cancellation of Salesperson or Investment Adviser Representative License (1) A salesperson's or investment adviser representative's license with a broker-dealer, state or federal covered investment adviser, issuer or owner, ("employer"), may be termina…

441-175-0160 Renewal of FINRA Broker-Dealer and Salesperson Licenses (1) The licenses of a FINRA broker-dealer and all affiliated salespersons expire on December 31, unless otherwise renewed according to this rule. (2) To renew a license, a FINRA broker-dealer must submit the fol…

441-175-0165 Renewal of the Licenses of Non-FINRA Broker-Dealers or State Investment Advisers, and Their Salespersons or Investment Adviser Representatives (1)(a) The licenses of a non-FINRA broker-dealer or state investment adviser (employer), and the licenses of their salespers…

441-175-0171 Use of Trade Name or Assumed Business Name (1) Each person holding a license or applying for a license issued under ORS 59.005 to 59.370, who desires to operate under a trade name or an assumed business name must submit the following to the director for each name to …

441-175-0175 Internet Communications (1) Scope of rule. This rule applies to dissemination by firms or individuals of information about securities-related services or products on the Internet, except for any firms or individuals located in Oregon. As used in this section, the ter…

441-175-0185 Errors and Omissions Coverage under ORS 59.175 (1) Investment advisors and broker-dealers subject to ORS 59.175 must submit proof of insurance to the division as a condition of licensure and annual renewal. (2) Proof of insurance may be demonstrated by submitting to …

441-175-0190 Definitions for Investment Adviser Continuing Education As used in OAR 441-175-0190, the following definitions apply unless context requires otherwise. (1) “Approved IAR Continuing Education Content” means the materials, written, oral, or otherwise that have been app…

441-175-0195 Investment Adviser Representative Continuing Education (1) Every investment adviser representative licensed or required to be licensed under ORS 59.175 must complete the following continuing education requirements each reporting period: (a) An investment adviser repr…

441-195-0010 Customer and Account Records by Broker-Dealers (1) Every broker-dealer shall make and keep current a record for each account with a natural person as a customer or owner, which record shall state the customer’s or account owner’s name, address, tax identification or …

441-195-0020 Business Records by Broker-Dealers (1) Every broker-dealer shall make and keep current the following books and records relating to its business: (a) Blotters (or other records of original entry) containing an itemized daily record of all purchases and sales of securi…

441-195-0030 Records to be Preserved by Certain Broker-Dealers (1) Every broker-dealer subject to OAR 441-195-0020 shall preserve for a period of not less than six years all records required to be made pursuant to 441-195-0020(1)(a), (b), (c), (e), (r) (s), (t), and analogous rec…

441-195-0040 Books and Records to Be Maintained by Investment Advisers (1) Every investment adviser shall make and keep true, accurate, and current the following books and records relating to his investment advisory business: (a) A journal or journals, including cash receipts and…

441-195-0050 Reports by Broker-Dealers and Investment Advisers (1) General Rule. Every broker-dealer and every investment adviser who takes any discretionary authority from any investment advisory client to execute transactions or has custody of any investment advisory client’s s…

441-195-0060 Notice of Complaint (1) Each broker-dealer and each investment adviser who has filed a complaint against any of its partners, officers, directors, or associated persons registered in Oregon, with any law enforcement agency, any other regulatory agency having jurisdic…

441-195-0070 Discretionary Authority (1) No broker-dealer, or any associated person, shall exercise any discretionary power or authority for any customer unless such customer has given prior written authorization to exercise such power or authority to a stated associated person o…

441-205-0010 Dishonest, Fraudulent, Unfair and Unethical Practices As used in section (2) of ORS 59.205, the terms “dishonest, fraudulent, or illegal practices or conduct,” and “unfair or unethical practices or conduct,” separately or in any combination thereof, shall include, bu…

441-205-0020 General Definition “Manipulative, Deceptive, or Fraudulent Device or Contrivance” and “Fraudulent, Deceptive, or Manipulative Act or Practice” are defined to include: (1) Any act, practice, or course of business which operates or would operate as a fraud or deceit up…

441-205-0030 Confirmation of Transaction The term “Manipulative, Deceptive, or Fraudulent Device or Contrivance” as used in these rules is defined to include: (1) Any act of any broker-dealer designed to effect with or for the account of a customer any transaction in, or to induc…

441-205-0040 Disclosure of Control The term “Manipulative, Deceptive, or Other Fraudulent Device or Contrivance,” as used in these rules, is hereby defined to include any act of any broker-dealer controlled by, controlling, or under common control with, the issuer of any security…

441-205-0050 Disclosure of Interest in Distributions The term “Manipulative, Deceptive or Other Fraudulent Device or Contrivance,” as used in these rules, is hereby defined to include any act of any broker-dealer who is acting for a customer or for both such customer and some oth…

441-205-0060 Sales at the Market The term “Manipulative, Deceptive, or Other Fraudulent Device or Contrivance,” as used in these rules, is hereby defined to include any representation made to a customer by a broker-dealer that such security is being offered to such customer “At t…

441-205-0070 Use of Pro Forma Balance Sheets The term “Manipulative, Deceptive, or Other Fraudulent Device or Contrivance,” as used in these rules, is hereby defined to include the use of financial statements purporting to give effect to the receipt and application of any part of…

441-205-0080 Disclosure and Other Requirements When Extending or Arranging Credit in Certain Transactions (1) It shall constitute a “Fraudulent, Deceptive, or Manipulative Act or Practice,” as used in these rules, for any broker-dealer to offer or sell any security to, or to atte…

441-205-0090 Identification of Quotations (1) It shall constitute a “Fraudulent, Deceptive, or Manipulative Act or Practice,” as used in these rules, for any broker-dealer to effect any transaction in, or induce or attempt to induce the purchase or sale of any security by making …

441-205-0100 Discretionary Accounts (1) The term “Fraudulent, Deceptive, or Manipulative Act or Practice,” as used in these rules, is hereby defined to include any act of any broker-dealer or associated person designed to effect with or for any customer’s account with respect to …

441-205-0110 Hypothecation of Customer’s Securities (1) General Provisions. The term “Fraudulent, Deceptive, or Manipulative Act or Practice,” as used in these rules, is hereby defined to include the direct or indirect hypothecation by a broker-dealer, or his arranging for or per…

441-205-0120 Transmission or Maintenance of Payments Received in Connection With Underwritings It shall constitute a “Fraudulent, Deceptive, or Manipulative Act or Practice,” as used in these rules, for any broker-dealer participating in any distribution of securities, other than…

441-205-0130 Fair Dealing with Customers The term “Manipulative, Deceptive, or Other Fraudulent Act or Practice,” as used in these rules, is hereby defined to include: (1) Recommending speculative low-priced securities to customers without knowledge of or attempt to obtain inform…

441-205-0135 Sales of Securities or Investment Advisory Services at Financial Institutions or Trust Companies (1) This rule applies exclusively to securities sales activity conducted by a broker-dealer or salesperson, and to investment advisory services conducted by an investment…

441-205-0140 Suitability of Recommendations It shall constitute a “Fraudulent, Deceptive, or Manipulative Act or Practice,” as used in these rules, for any broker-dealer or associated person to recommend to a customer the purchase, sale, or exchange of any security, unless such b…

441-205-0145 Unethical Business Practices of State Investment Advisers and Their Investment Adviser Representatives (1) A person who is a State Investment Adviser or an Investment Adviser Representative for a State Investment Adviser is a fiduciary and has a duty to act primarily…

441-205-0165 Investment Adviser Brochure It shall constitute a “Fraudulent, Deceptive, or Manipulative Act or Practice” as used in these rules for any investment adviser to enter into or offer to enter into an investment advisory contract, or in any way perform an investment advi…

441-205-0170 Compensation of Investment Advisers (1) The term “Fraudulent, Deceptive, or Manipulative Act or Practice,” as used in these rules, is hereby defined to include entering into, extending, or renewing any investment advisory contract, or in any way performing any invest…

441-205-0180 Custody or Possession of Funds or Securities of Clients by Investment Advisers (1) It shall constitute a “Fraudulent, Deceptive, or Manipulative Act or Practice,” within the meaning of these rules, for any investment adviser who has custody or possession of any funds…

441-205-0190 Disclosure of Capacity It shall constitute a “Manipulative, Deceptive, or Other Fraudulent Act or Practice,” within the meaning of these rules, for an investment adviser acting as principal for his own account, knowingly to sell any security to or purchase any securi…

441-205-0200 Advertisements by Investment Advisers (1) It shall constitute a “Fraudulent, Deceptive, or Manipulative Act or Practice,” within the meaning of these rules, for any investment adviser, directly or indirectly, to publish, circulate, or distribute any advertisement: (a…

441-205-0210 Supervision of Associated Persons (1) Every broker-dealer shall exercise diligent supervision over the securities activities of all of his associated persons. (2) Every associated person of the broker-dealer shall be subject to the supervision of a supervisor designa…

441-225-0010 Cancellation, Withdrawal and Suspension of the License for Broker-Dealers, Mortgage Brokers, Investment Advisers, and Salespersons (1) The procedure for cancellation of a license for failure to maintain a bond as required by ORS 59.175(4) is: (a) Upon notification fr…

441-225-0020 Termination of Order Authorizing Use of Assumed Business Name or Trade Name The status of an order authorizing use of an assumed business name or a trade name pursuant to OAR 441-175-0171 is dependent upon the license status of the licensee. Therefore, without furthe…

441-225-0030 License Conditions or Restrictions (1) If the Director makes a finding as specified in ORS 59.205 or 59.215 and determines, in the public interest, that the license of an applicant should be conditioned or restricted, the Director may issue the license: (a) Under the…

441-300-0010 Depository Receipts (1) As used in ORS 645.020, an instrument evidencing receipt of precious metals must comply with ORS Chapter 77 (Warehouse Receipts, Bills of Lading and Other Documents of Title). (2) In addition to stating the quantity, the receipt must state the…

441-300-0020 Authorized Depositories Pursuant to ORS 645.020(2)(a)(D), the Director designates the following depositories: (1) Chase Manhattan Bank, 1 Chase Manhattan Plaza, New York, NY 10081. (2) CitiBank, 399 Park Avenue, New York, NY 10043. (3) Iron Mountain Depository Corpor…