Cal. Code Regs. Tit. 10, § 260.236 - Qualifications of Investment Advisers and Investment Adviser Representatives

References to an investment adviser representative shall mean both an investment adviser representative and an associated person of an investment adviser, as those terms are defined in Section 25009.5(a) and (b) of the Code.

(a) Qualification Requirements. An investment adviser and each investment adviser representative shall pass, within two years prior to the date of filing the application for an investment adviser certificate or becoming engaged as an investment adviser representative:

(1) the Series 65/Uniform Investment Adviser Law Examination in effect on January 1, 2000 ("2000 Series 65 Examination"), or

(2) the Series 7/General Securities Representative Examination ("Series 7 Examination) and the Series 66/Uniform Combined State Law Examination ("2000 Series 66 Examination").

(b) Waivers: The requirements of subsection (a) do not apply to:

(1) Any investment adviser or individual employed or engaged as an investment adviser representative registered, reported or licensed in any state of the United States as of December 31, 1999. However, the Commissioner may require additional examinations for any individual found to have violated the Corporate Securities Law of 1968 or the rules promulgated thereunder.

(2) Any investment adviser or investment adviser representative who has been actively and continuously engaged in the securities business as a broker-dealer, an agent of a broker-dealer, an investment adviser, or an investment adviser representative without substantial interruption (two or more years) since passing the qualifying examination(s) and who has:

(A) passed the Series 2 Examination (SEC/FINRA Nonmember General Securities Examination) or passed the Series 7 Examination before January 1, 1998, or

(B) passed the Series 65 Examination or Series 66 Examination before January 1, 2000 and has passed the Series 7 Examination.

(c) Exemptions. Subsection (a) shall not apply to:

(1) any individual who has been registered as an investment adviser or employed or engaged as an investment adviser representative in any state for two consecutive years immediately before the date of filing an application or notice pursuant to Corporations Code Section 25230(b) or 25230.1(c) in this state. This provision shall not apply to an individual using the exemption in subsection (c)(2).

(2) any investment adviser representative employed by or engaged by an investment adviser only to offer or negotiate for the sale of investment advisory services of the investment adviser.

(3) any individual who currently holds one of the following professional designations:

(A) Chartered Financial Analyst ("CFA") granted by the CFA Institute;

(B) Chartered Financial Consultant ("ChFC") awarded by The American College, Bryn Mawr, Pennsylvania;

(C) CERTIFIED FINANCIAL PLANNER^TM or CFP® issued by the Certified Financial Planner Board of Standards, Inc.;

(D) Chartered Investment Counselor ("CIC") granted by the Investment Adviser Association; or

(E) Personal Financial Specialist ("PFS") administered by the American Institute of Certified Public Accounts.

(d) An individual who has not been registered in any state for a period of two years shall be required to comply with the examination requirements of this rule. This provision shall not apply to an individual using the exemption in subsection (c)(2) or (c)(3).

Notes

Cal. Code Regs. Tit. 10, § 260.236

1. Amendment of subsection (a) filed 6-28-73; effective thirtieth day thereafter (Register 73, No. 26).
2. Editorial correction (Register 73, No. 36).
3. Amendment filed 4-27-84; effective thirtieth day thereafter (Register 84, No. 18).
4. Amendment filed 1-10-89; operative 2-9-89 (Register 89, No. 2).
5. Amendment of section heading and section filed 12-31-97; operative 1-1-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 1).
6. Amendment filed 12-27-99 as an emergency; operative 1-1-2000 (Register 99, No. 53). A Certificate of Compliance must be transmitted to OAL by 5-1-2000 or emergency language will be repealed by operation of law on the following day.
7. Certificate of Compliance as to 12-27-99 order, including amendment of section and NOTE, transmitted to OAL 4-24-2000 and filed 6-6-2000 (Register 2000, No. 23).
8. Amendment of section heading and section filed 3-4-2003; operative 4-3-2003 (Register 2003, No. 10).
9. Amendment of subsection (c)(3)(C) filed 9-23-2009; operative 10-23-2009 (Register 2009, No. 39).
10. Amendment of subsections (b)(2)(A), (c)(3)(A) and (c)(3)(D) filed 9-24-2009; operative 10-24-2009 (Register 2009, No. 39).

Note: Authority cited: Sections 25236(a) and 25610, Corporations Code. Reference: Sections 25230, 25230.1 and 25236, Corporations Code.

1. Amendment of subsection (a) filed 6-28-73; effective thirtieth day thereafter (Register 73, No. 26).
2. Editorial correction (Register 73, No. 36).
3. Amendment filed 4-27-84; effective thirtieth day thereafter (Register 84, No. 18).
4. Amendment filed 1-10-89; operative 2-9-89 (Register 89, No. 2).
5. Amendment of section heading and section filed 12-31-97; operative 1-1-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 1).
6. Amendment filed 12-27-99 as an emergency; operative 1-1-2000 (Register 99, No. 53). A Certificate of Compliance must be transmitted to OAL by 5-1-2000 or emergency language will be repealed by operation of law on the following day.
7. Certificate of Compliance as to 12-27-99 order, including amendment of section and Note, transmitted to OAL 4-24-2000 and filed 6-6-2000 (Register 2000, No. 23).
8. Amendment of section heading and section filed 3-4-2003; operative 4-3-2003 (Register 2003, No. 10).
9. Amendment of subsection (c)(3)(C) filed 9-23-2009; operative 10-23-2009 (Register 2009, No. 39).
10. Amendment of subsections (b)(2)(A), (c)(3)(A) and (c)(3)(D) filed 9-24-2009; operative 10-24-2009 (Register 2009, No. 39).