RIA Compliance Blog
The Louisiana Office of Financial Institutions recently adopted amendments to the written examination requirements that enable investment adviser representatives to be registered with the Louisiana Securities Commissioner. These amendments became effective on September 1, 2016. The Office of Financial Institutions explained that the amendments were adopted to ensure that all investment advisers are properly qualified to provide investment advice to Louisiana’s citizens.
The amendments that the Office of Financial Institutions made are detailed in LAC 10:XIII.1301-1311, Investment Adviser Registration Procedure. The amendments are as follows:
First, Section 1303 details the new examination requirements that an investment adviser representative must meet. It provides that an investment adviser firm applying for registration under R.S. 51.703(D) of the Louisiana Securities Law, or renewal of any such registration, must provide the Commissioner with proof that each of the advisers’ representatives have met one of the following examination requirements. The representatives must have either successfully passed the Uniform Investment Adviser Law Examination (Series 65) after January 1, 2000; or successfully passed the General Securities Representative Examination (Series 7) and the Uniform Combined State Law Examination (Series 66); or successfully passed the General Securities Representative Examination (Series 7) and Uniform Registered Investment Adviser Law Examination (Series 65) prior to January 1, 2000.
Second, Section 1309 provides that a former grandfathering provision was repealed. This means that persons and entities that were engaged in activities or operations that were approved before the implementation of the new examination requirements must also meet the new requirements.
Third, Section 1311 provides that the written examination requirements shall not apply to third-party solicitors whom investment adviser representatives hire to solicit new clients.
Parker MacIntyre provides legal and compliance services to investment advisers, broker-dealers, registered representatives, hedge funds, and issuers of securities, among others. Our regulatory practice group assists financial service providers with complex issues that arise in the course of their business, including compliance with federal and state laws and rules. Please visit our website for more information.