Ill. Admin. Code tit. 14, § 130.829 - Investor Protection Requirement of a Dealer Registered Under Section 8 of the Act

a) Each dealer registered or re-registered with the Secretary under Section 8.B of the Act shall be a member in good standing of FINRA, as evidenced by not being under suspension or revocation or having failed to pay dues or assessments; or

b) Each dealer registered or re-registered with the Secretary under Section 8.B of the Act shall be a member in good standing of the Securities Investor Protection Corporation as established in the Securities Investor Protection Act of 1970 ( 15 USC 78 aaa et seq.), as amended, as evidenced by not being under suspension or revocation or having failed to pay dues or assessments, or other equivalent instrumentality of or corporation chartered by the United States that provides investor protection as authorized under federal law, except for the following dealers if they do not hold clients' cash or securities:

1) A dealer whose principal business in the Securities Investor Protection Corporation's determination is conducted outside the United States, its possessions and territories;

2) Any bank (other than a bank organized under the banking laws of the State of Illinois or of the United States) registered as a municipal securities dealer with the SEC, pursuant to 17 CFR 240.15Ba2 - 1, (May 31, 2011);

3) A government securities dealer registered under 17 CFR 240.15Ca1 - 1, (May 31, 2011); and

4) A dealer whose business consists exclusively of one or more of the following:

A) the distribution of shares of registered open end investment companies or unit investment trusts registered under Section 8 of the Federal 1940 Investment Company Act, as defined in Section 130.200 of this Part, Section 5 of the Federal 1933 Act, as defined in Section 130.200 of this Part, and Section 5 or 7 of the Act;

B) the sale of variable annuities;

C) the business of insurance; or

D) the business of rendering investment advisory services to one or more investment companies registered under the Federal 1940 Investment Company Act, as defined in Section 130.200, or to insurance company separate accounts.

Notes

Ill. Admin. Code tit. 14, § 130.829

Amended at 36 Ill. Reg. 2852, effective February 8, 2012