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EXAMS

The state securities administrator may require investment adviser representatives as well as the officers and directors of the firm to take an exam, which may be oral, written, or both. All registrations become effective at noon 30 days after the application has been filed. The administrator may require that an announcement of the investment adviser's intended registration be published in the newspaper.

Requirement

Broker Dealer

Investment Adviser

Agents

Net capital

Yes

Yes

No

Surety bond

Yes

Yes

Yes

Exams

Yes

Yes

Yes

Fees

Yes

Yes

ADVERTISING AND SALES LITERATURE

All advertising and sales literature for an investment adviser must be filed with the state securities administrator. The administrator may require prior approval of:

• Form letters

• Prospectuses

• Pamphlets

The following records must be kept for a minimum of three years for broker dealers and five years for investment advisers unless the state securities administrator requires a different period of time:

• Advertising and sales literature

• Account statements

• Order tickets/order memorandum

All investment advisers must keep accurate records relating to the following:

• Cash receipts and disbursements.

• Income and expense ledgers.

• Order tickets, including customer's name.

• Adviser's name, including executing broker and discretionary information.

• Ledgers and confirmations for all customers for whom the adviser has custody.

• Financial statements and trial balance.

• All written recommendations to customers.

• Copies of advertisements, circulars, and articles sent to more than 10 people.

• Copies of calculations sent to more than 10 people.

All books and records must be kept for five years readily accessible and for two years at the adviser's office. Records may be kept on a computer or microfiche as long as the data may be viewed and printed.

 
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