Pennsylvania Administrative Code

§ 302.061. Auctioneers exemption from broker-dealer and agentregistration. (a) Under the authority contained in section 302(f) of the act (70 P.S. § 1-302(f)), the Department considers it appropriate and in the public interest to exempt persons from the broker-dealer and agent re…

§ 302.063. Financial institutions exempt from broker-dealer and agentregistration. Under section 302(f) of the act (70 P.S. § 1-302(f)), the Department considers it appropriate and in the public interest to exempt financial institutions and individuals representing financial inst…

§ 302.064. Stock Exchange exemption from agent registration. Under the authority contained in section 302(f) of the act (70 P.S. § 1-302(f)), the Department considers it appropriate and in the public interest to exempt agents from the registration provisions of section 301 of the…

§ 302.065. Canadian broker-dealer exempt. Under section 302(f) of the act (70 P.S. § 1-302(f)), the Department considers it appropriate and in the public interest to exempt Canadian broker-dealers and agents representing Canadian broker-dealers from the broker-dealer and agent re…

§ 302.070. Registration exemption for investment advisers to private funds. (a) Exemption for private fund advisers. Subject to the additional requirements of subsection (b), a private fund adviser is exempt from the registration requirements of section 301(c) of the act (70 P.S.…

§ 302.071. Registration exemption for solicitors. A solicitor does not need to register as an investment adviser or investment adviser representative if the solicitor: (1) Is in compliance with all requirements of § 404.012 (relating to cash payment for client solicitation). (2) …

§ 303.011. Broker-dealer registration procedures. (a) An applicant for initial registration as a broker-dealer shall complete a Uniform Application for Broker-Dealer Registration (Form BD), or a successor form. (b) An applicant which is not a member of FINRA or a member of a Nati…

§ 303.012. Investment adviser registration procedure. (a) An applicant for initial registration as an investment adviser shall complete a Uniform Application for Investment Adviser Registration (Form ADV), or a successor form. (b) The applicant shall complete and file with the De…

§ 303.013. Agent registration procedures. (a) An applicant for initial registration as an agent of a broker-dealer or issuer shall complete a Uniform Application for Securities Industry Registration or Transfer (Form U-4) or a successor form. (b) Except as provided in subsection …

§ 303.014. Investment adviser representative registration procedures. (a) An applicant for initial registration as an investment adviser representative of an investment adviser or Federally covered adviser shall complete a Uniform Application for Securities Industry Registration …

§ 303.015. Notice filing for Federally covered advisers. (a) Format. Federally covered advisers required to file notice under section 303(a)(iii) of the act (70 P.S. § 1-303(a)(iii)) shall file the uniform application for investment adviser registration, Form ADV or successor for…

§ 303.016. Considered as abandoned. (a) General rule. The Department may consider as abandoned an application for registration as a broker-dealer, agent, investment adviser or investment adviser representative which has been on file with the Department for a minimum of 6 consecut…

§ 303.021. Registration and notice filing procedures for successors to a broker-dealer, investment adviser or Federally covered adviser. (a) If a broker-dealer is formed or proposed to be formed to succeed to, and continue the business of, a broker-dealer registered under section…

§ 303.031. Examination requirement for agents. (a) An individual may not be registered as an agent under the act unless the individual meets the requirements of subsections (b) and (c). (b) The applicant receives a passing grade on the securities examination for principals or reg…

§ 303.032. Examination requirements for investment advisers and investment adviser representatives. (a) Examination requirements. To be registered as an investment adviser or investment adviser representative under the act, an individual shall meet one of the following examinatio…

§ 303.041. Broker-dealer capital requirements. (a) Except as set forth in subsection (e), every broker-dealer registered under section 301 of the act (70 P.S. § 1-301) shall maintain net capital of $25,000 with an aggregate indebtedness not exceeding 1500% of its net capital. (b)…

§ 303.042. Investment adviser capital requirements. (a) Net worth requirements. (1) An investment adviser registered under section 301 of the act (70 P.S. § 1-301) with its principal place of business in a state other than this Commonwealth shall meet all of the following net wor…

§ 303.051. Surety bonds. (a) A surety bond shall be: (1) Filed with the Department on Uniform Surety Bond Form (Form U-SB) or successor form. (2) Subject to the claims of all clients regardless of the client’s state of residence. (3) Issued by a person licensed to issue surety bo…

§ 304.011. Broker-dealer required records. (a) Books and records. (1) Every broker-dealer registered under section 301 of the act (70 P.S. § 1-301) shall make and keep the records required to be maintained as described in Rule 17a-3 (17 CFR 240.17a-3) (relating to records to be m…

§ 304.012. Investment adviser required records. (a) Except as provided in subsection (j), every investment adviser registered under the act shall make and keep true, accurate and current all of the following books, ledgers and records: (1) A journal or journals, including cash re…

§ 304.021. Broker-dealer required financial reports. (a) A broker-dealer registered under the act but not registered as a broker or dealer with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (15 U.S.C.A. § § 78a—78qq) shall file annually with the…

§ 304.022. Investment adviser required financial reports. (a) An investment adviser registered under section 301 of the act (70 P.S. § 1-301) that has custody of client funds or securities or requires prepayment of advisory fees 6 months or more in advance and in excess of $1,200…

§ 304.041. Examinations of broker-dealers and investment advisers. (a) In the conduct of an examination authorized under section 304(d) of the act (70 P.S. § 1-304(d)), every broker-dealer and investment adviser registered under the act: (1) Shall honor all requests by representa…

§ 304.051. Broker-dealer compensation. (a) A broker-dealer registered under the act may not charge or receive commissions or other compensation in connection with the purchase or sale of securities. (b) The prohibition contained in subsection (a) does not apply if the compensatio…

§ 304.052. Investment adviser compensation. No investment adviser registered under the act may charge or receive commissions or other compensation in connection with the giving of investment advice unless the compensation is fair and reasonable and is determined on an equitable b…

§ 304.061. Free credit balances. (a) A broker-dealer registered or required to register under the act may not use funds arising out of a free credit balance carried for the account of a customer in connection with the operation of the business of the broker-dealer. (b) The prohib…

§ 304.071. Business continuity and succession planning. (a) An investment adviser registered or required to be registered with the Department shall establish, implement and maintain written procedures relating to a business continuity and succession plan. (b) The investment advis…

§ 305.011. Supervision of agents, investment adviser representatives and employees. (a) Every broker-dealer and investment adviser registered under section 301 of the act (70 P.S. § 1-301) shall exercise diligent supervision over the securities activities and securities related a…

§ 305.019. Dishonest and unethical practices. (a) Every person registered under section 301 of the act (70 P.S. § 1-301) is a fiduciary and shall: (1) Act primarily for the benefit of its customers. (2) Observe high standards of commercial honor and just and equitable principals …

§ 305.020. Use of senior specific certifications and professional designations. (a) General rule. The use of a senior specific certification or designation by a person in connection with the offer, sale or purchase of securities, or the provision of advice as to the value of or t…

§ 305.061. Withdrawal of registration or notice filing. (a) Investment adviser. To withdraw from registration as an investment adviser registered under section 301 of the act (70 P.S. § 1-301) because the investment adviser has: (1) Become a Federally covered adviser subject to e…

§ 31.1. Maximum principal amount of loans over 80% of fair market value. (a) The principal of the obligation on loans in excess of 80% of the fair market value of one family residential property to be encumbered shall not exceed $40,000 provided, however, that there shall be no a…

§ 31.2. Loans in excess of statutory authorization on one-family residential properties. (a) The limitation of 90% which exceeds the 80% as set forth in section 903 of the act (15 P. S. § 5903(3)) shall be 95% in the case of any loan with respect to which the additional following…

§ 31.3. Over 75% loans on properties for residential use by five or more families. The principal of the obligation on loans secured by properties designed primarily for residential use by five or more families or upon the security of real estate on which such a building is to be …

§ 31.4. Terms of mortgage. (a) The first monthly payment date on direct reduction loans to finance new construction may be postponed to a date not later than 36 months after the date of the first advance made on the loan, provided that the interest on said loan shall be payable n…

§ 31.5. Alternatives to direct reduction loans. Loans other than those set forth in section 915(b)—(f) of the Savings Association Code of 1967 (7 P. S. § 6020-155(b)—(f)) and any others which by statute demand, require or permit a specific method of payment shall be written on a …

§ 31.6. Renegotiable rate mortgage loans. (a) Authorization. A savings association may make, purchase or participate in a renegotiable rate mortgage loan program under the authority contained in sections 701(a)(22), 901 and 915 of the Savings Association Code of 1967 (7 P. S. § §…

§ 31a.1. Definitions. The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise: Fiduciary—An association undertaking to act alone, through an affiliate, or jointly with others primarily for the benefit o…

§ 31a.10. Compensation of associations. (a) General. If the amount of the compensation for acting in a fiduciary capacity is not regulated by State law or provided for in the instrument creating the fiduciary relationship or otherwise agreed to by the parties, an association acti…

§ 31a.11. Collective investment. (a) Funds held by an association as fiduciary may be held in one of the following: (1) A common trust fund maintained by the association exclusively for the collective investment and reinvestment of moneys contributed thereto by the association in…

§ 31a.12. Surrender of trust powers. (a) Any association which has been granted the right to exercise trust powers and which desires to surrender such rights shall file with the Department a certified copy of the resolution of its board of directors signifying such desire. (b) Up…

§ 31a.13. Revocation of trust powers. In addition to the other sanctions available, if, in the opinion of the Department, an association is unlawfully or unsoundly exercising or has unlawfully or unsoundly exercised or for a period of 5-consecutive years has failed to exercise th…

§ 31a.2. Applications. (a) An association desiring to exercise fiduciary powers, either through a trust department or through an affiliate, shall file with the Department an application indicating which trust services it wishes to offer and providing the information necessary to …

§ 31a.3. Administration of trust powers. (a) The responsibility of the board of directors and the administration of accounts shall be as follows: (1) Responsibility of the board of directors. The board of directors is responsible for the proper exercise of fiduciary powers by the…

§ 31a.4. Books and accounts. (a) General. Every association exercising trust powers shall keep its fiduciary records separate and distinct from other records of the association. All fiduciary records shall be kept and retained for such time as to enable the association to furnish…

§ 31a.5. Audit of trust department. At least once during each calendar year, the association’s trust department shall be audited by auditors in a manner consistent with section 1407 of the Banking Code (7 P. S. § 1407). A copy of the report of the audit shall be promptly filed wi…

§ 31a.6. Funds awaiting investment or distribution. (a) General. Funds held in a fiduciary capacity by an association awaiting investment or distribution shall not be held uninvested or undistributed any longer than is reasonable for the proper management of the account. (b) Use …