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2024 NOTICES OF RULE MAKING INTENT - HOME
TITLE 660. DEPARTMENT OF SECURITIES
CHAPTER 11. OKLAHOMA UNIFORM SECURITIES ACT OF 2004
 
RULEMAKING ACTION:
  Notice of proposed PERMANENT rulemaking
PROPOSED RULES:
  Subchapter 5. Broker-Dealers and Agents
Part 1. General Provisions
  660:11-5-2. Definitions [AMENDED]
Part 3. Licensing Procedures
  660:11-5-16. Examination requirements for agents and principals of non-FINRA member broker-dealers [AMENDED]
  660:11-5-26. Merger and acquisition broker exemption [AMENDED]
Part 7. Record Keeping and Ethical Standards
  660:11-5-42.1 Standards of ethical practices for practicesDishonest and unethical practices of issuer agents [AMENDED]

Subchapter 7. Investment Advisers and Investment Adviser Representatives
Part 3. Licensing Procedures
  660:11-7-11. Initial registration [AMENDED]
  660:11-7-13. Examination requirements for investment adviser representatives [AMENDED]
  660:11-7-21. Errors and omissions coverage [AMENDED]
Part 5. Reporting Requirements
  660:11-7-31. Post-registration reporting requirements [AMENDED]
Part 7. Record Keeping and Ethical Standards
  660:11-7-42. Dishonest and unethical practices of investment advisers and investment adviser representatives [AMENDED]

Subchapter 9. Registration of Securities
Part 5. Guidelines and Policies Applicable to Offerings of Registered Securities
  660:11-9-34. NASAA guidelinesApplication of NASAA Statements of Policy and guidelines [AMENDED]

Subchapter 11. Exemptions from Securities Registration
Part 1. General Provisions
  660:11-11-5. Application of NASAA Statements of Policy and guidelines [NEW]
Part 3. Exempt securities
  660:11-11-21. Not for profit debt securities notice filing [AMENDED]
Part 5. Exempt transactions
  660:11-11-42. Interpretation of 'existing security holders'Existing securities holders exemption [AMENDED]
  660:11-11-54. Intrastate offering exemption [AMENDED]

SUMMARY:
 

The proposed new rule and rule amendments clarify examination requirements for agents and investment adviser representatives, require investment advisers to register a natural person as an investment adviser representative, allow agents and investment adviser representatives to maintain the validity of their state examinations for up to five years under certain conditions, remove the attestation requirement for investment advisers required to submit proof of errors and omissions coverage and adjust the timeline for submission, clarify dishonest and unethical practices of issuer agents, conform investment adviser regulations relating to dishonest and unethical practices to model rules and federal law and clarify that changes in federal law relating to advertising are applicable to state-registered investment advisers and investment adviser representatives, clarify that the Department may require compliance with NASAA guidelines and Statements of Policy in connection with the review of securities registrations and exemption filings, clarify the filing requirements for the exemption from registration for transactions with existing securities holders, correct statutory cites and terminology, and clarify existing law and changing regulatory procedures.

The Administrator finds that the subject new rule and rule amendments are necessary or appropriate in the public interest or for the protection of investors and are consistent with the purposes intended by the Oklahoma Uniform Securities Act of 2004.

AUTHORITY:
  Administrator, Oklahoma Department of Securities; 71 O.S. 1-605 and 1-608
COMMENT PERIOD:
  Persons wishing to present their views in writing may do so before 4:30 p.m., February 16, 2024, at the Oklahoma Department of Securities, City Place, 204 North Robinson Avenue, Suite 400, Oklahoma City, OK  73102-7001.
PUBLIC HEARING:
  A public hearing will be held at 1:30 p.m. on Thursday, February 22, 2024, to provide an opportunity for persons to orally present their views.  The hearing will be held in the conference room at the Oklahoma Department of Securities, 204 North Robinson Avenue, Suite 400, Oklahoma City, OK  73102-7001, and virtually.  Information to access the hearing virtually will be posted on the Department's website, www.securities.ok.gov, at least three days prior to the hearing, or you may contact the Department at 405-280-7700 for the access information.  Should you wish to speak during the hearing, please sign in at the door or log in virtually by 1:15 p.m. and post your name, phone number, email address, and name of the person you are representing, if any, in the chat box.  Each person will be allowed a maximum of 10 minutes to speak.
REQUEST FOR COMMENTS FROM BUSINESS ENTITIES:
  Business entities should evaluate the effect of the proposed new rule and rule amendments upon their business operations. The Department requests that business entities that may be affected by the proposed new rule and rule amendments provide the Department, within the comment period, in dollar amounts, if possible, any increase in the level of direct costs, indirect costs, or other costs expected to be incurred due to compliance with the proposed new rule and rule amendments. Business entities may submit this information in writing to Gerri Kavanaugh, at the above address, before the close of the comment period on February 16, 2024.
COPIES OF PROPOSED RULES:
  The public may access copies of the proposed new rule and rule amendments on the Department’s website at www.securities.ok.gov or obtain copies for review between 8:30 a.m. and 4:30 p.m., Monday through Friday, at the offices of the Oklahoma Department of Securities, City Place, 204 North Robinson Avenue, Suite 400, Oklahoma City, OK  73102-7001, or by calling (405) 280-7700.
RULE IMPACT STATEMENT:
  A rule impact statement will be available as of January 31, 2024, from the Oklahoma Department of Securities (address, telephone number, times, and website as listed above).
CONTACT PERSON:
  Gerri Kavanaugh, General Counsel, Oklahoma Department of Securities, (405) 280-7721