DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS 
 
CORPORATIONS, SECURITIES, AND COMMERCIAL LICENSING BUREAU  
 
SECURITIES
 
Filed with the secretary of state on
 
These rules become effective immediately after filing with the secretary of state unless adopted under section 33, 44, or 45a(9) of the administrative procedures act of 1969, 1969 PA 306, MCL 24.233, 24.244, or 24.245a.  Rules adopted under these sections become effective 7 days after filing with the secretary of state.

(By authority conferred  on  the  director of the department of licensing and regulatory affairs by sections 201, 202, 202a, 203, 304, 306, 401, 403, 405, 406, 410, 411, 412, 502, 504, and 605 of the uniform securities act (2002), 2008 PA 551, MCL 451.2201, 451.2202, 451.2202a, 451.2203, 451.2304, 451.2306, 451.2401, 451.2403, 451.2405, 451.2406, 451.2410, 451.2411, 451.2412, 451.2502, 451.2504, and 451.2605, and Executive Reorganization Order No. 2012-6, MCL 445.2034)

 
R 451.4.9 and R 451.4.12 of the Michigan Administrative Code are amended, and R 451.4.30 is added, as follows:

PART 4. BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, INVESTMENT ADVISER REPRESENTATIVES, AND FEDERAL COVERED INVESTMENT ADVISERS

R 451.4.9   Broker-dealer and agents representing broker-dealers examination   

  requirements.

  Rule 4.9.  (1) Unless waived by the administrator, a natural person applicant for initial registration as a broker-dealer or agent shall take and pass, within 2 years immediately preceding the filing date of the application, and as reflected on the records of CRD, both of the following:

   (a) Either the uniform securities agent state law examination, (S63,) or the uniform combined state law examination, (S66).

   (b) The general securities business examination set forth in paragraph (i) of this subdivision, unless the applicant’s proposed securities activities will be restricted, in which case the applicant shall be is required to take and pass each examination in paragraphs (ii) to (viii) of this subdivision that relates to the applicant’s proposed securities activities:

    (i) The general securities representative examination, (S7).

    (ii) The investment company products/variable contracts representative examination, (S6).

    (iii) The direct participation programs representative examination, (S22).

    (iv) The municipal securities representative examination, (S52).

    (v) The corporate securities limited representative examination, (S62).

    (vi) The registered options representative examination, (S42).

    (vii) The government securities representative examination, (S72).

    (viii) The private placement representative examination, (S82).

    (ix) Other examinations as may be applicable to an associated person and his or her their activities according to FINRA rules. 

  (2) An applicant for registration as a broker-dealer or agent is not required to take the examinations required by subrule (1) of this rule if the applicant was registered or licensed as a broker-dealer or agent in Michigan this state or another state with the same examination requirements as those identified in subrule (1) of this rule within the 2 years preceding the date the application was filed. 

(3) An applicant for registration as a broker-dealer or agent who has not been registered in a state with the same examination requirements as those identified in subrule (1)(a) of this rule for more than 2 years but fewer than 5 years and who elects to participate in the maintaining qualifications program operated by FINRA is not required to take and pass the uniform securities agent state law examination, S63, required by subrule (1)(a) of this rule if the applicant elects to participate in the examination validity extension program operated by NASAA within 2 years of agent registration termination.

  (4) An applicant for registration as a broker-dealer or agent who has not been registered in a state with the same examination requirements as those identified in subrule (1)(b) of this rule for more than 2 years but fewer than 5 years and who maintains validity of an examination required by subrule (1)(b) of this rule by successfully participating in the maintaining qualifications program operated by FINRA is not required to take and pass an examination required by subrule (1)(b). 

  (5) This rule does not extend the validity of the uniform combined state law examination, S66, for purposes of registration as an investment adviser representative under section 404(1) of the act, MCL 451.2404.  

R 451.4.12   Investment adviser and investment adviser representative examination

  requirements.

  Rule 4.12.  (1) Unless otherwise waived by the administrator, a natural person investment adviser or investment adviser representative shall take and pass within 2 years immediately preceding the date of the application, as reflected on the records of IARD, either of the following:

   (a) The uniform investment adviser state law examination, (S65).

   (b) The uniform combined state law examination, (S66), and the general securities representative examination, (S7). 

  (2) Any person who has been registered as an investment adviser or an investment adviser representative in any a state that requires the licensing, registration, or qualification of investment advisers or investment adviser representatives within the 2 years immediately preceding the date of filing an application shall is not be required to comply with the examination requirement in subrule (1) of this rule.

  (3) Compliance with subrules (1) and (2) of this rule is waived if the applicant has been awarded any of the following designations and at the time of filing an application the designation is current and in good standing:

   (a) Certified financial planner awarded by the certified financial planners board Certified Financial Planners Board of standards Standards.

   (b) Chartered financial consultant or Master of Science in Financial Planning masters of science and financial services awarded by the American College, in Bryn Mawr, Pennsylvania.

   (c) Chartered financial analyst awarded by the Institute of Chartered Financial Analysts.  

   (d) Personal financial specialists awarded by the American Institute of Certified Public Accountants.

   (e) Chartered investment counselor awarded by the Investment Adviser Association.

  (4) An applicant who has taken and passed the uniform investment adviser law examination, (S65), within 2 years immediately preceding the date the application is filed with the administrator, or at any time if the applicant has been registered or licensed as an investment adviser or investment adviser representative within the 2 years immediately preceding the date the application is filed with the administrator, shall is not be required to take and pass the uniform investment adviser law examination again.

  (5) An applicant who is an agent for a broker-dealer and an investment adviser and who is not required by the agent’s home jurisdiction to make a separate filing on CRD as an investment adviser representative, but who has previously met the examination requirement in subrule (1) of this rule necessary to provide advisory services on behalf of the broker-dealer or the investment adviser, shall is not be required to again take and pass the exams in subrule (1) of this rule.

(6) An applicant for registration who has not been registered in a state with the same examination requirements as those identified in subrule (1) of this rule for more than 2 years but fewer than 5 years is not required to take and pass the examination required by subrule (1) of this rule if the individual complies with R 451.4.30.

R 451.4.30   Investment adviser representative examination validity extension

  program.

  Rule 4.30.  (1) As used in this rule:

   (a) “IAR EVEP” means the investment adviser representative examination validity extension program operated by NASAA.

   (b) “MQP” means the maintaining qualifications program operated by FINRA.  

  (2) Notwithstanding R 451.4.12(2), an individual who terminates their registration as an investment adviser representative under section 404(1) of the act, MCL 451.2404, may maintain the validity of the examination required by R 451.4.12(1)(a) or (b) without being employed by or associated with an investment adviser or federal covered investment adviser for no more than 5 years following the termination of the effectiveness of the investment adviser representative registration if the individual complies with all of the following:

   (a) The individual previously took and passed the examination that they seek to maintain validity under this rule.

   (b) The individual was registered under section 404(1) of the act, MCL 451.2404, for at least 1 year immediately before the termination of that registration.

   (c) The individual has never been subject to statutory disqualification under section 3(a)(39) of the securities and exchange act of 1934, 15 USC 78c(a)(39).

   (d) The individual elects to participate in the IAR EVEP within 2 years of the effective date of the termination of a registration under section 404(1) of the act, MCL 451.2404.

   (e) The individual complies with R 451.4.29 when the individual’s registration under section 404(1) of the act, MCL 451.2404, becomes ineffective.

   (f) The individual annually completes the continuing education credits required by R 451.4.29(2)(a) and (b) on or before December 31 of each calendar year in which the individual participates in the IAR EVEP, regardless of when the individual elects to participate in the IAR EVEP.

  (3) An individual who complies with MQP is considered to comply with the R 451.4.29(2)(b) component of continuing education required by subrule (2)(f) of this rule.