Florida Senate - 2015 COMMITTEE AMENDMENT Bill No. SB 914 Ì592182*Î592182 LEGISLATIVE ACTION Senate . House Comm: RCS . 03/31/2015 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Banking and Insurance (Richter) recommended the following: 1 Senate Amendment to Amendment (171858) (with title 2 amendment) 3 4 Delete lines 418 - 1144 5 and insert: 6 (5) The issuer must file a notice of the offering with the 7 office, in writing or in electronic form, in a format prescribed 8 by commission rule, together with a nonrefundable filing fee of 9 $200. The commission may adopt rules establishing procedures for 10 the deposit of fees and the filing of documents by electronic 11 means if the procedures provide the office with the information 12 and data required by this section. A notice is effective upon 13 receipt of the completed form, filing fee, and an irrevocable 14 written consent to service of civil process, as provided for in 15 s. 517.101, by the office. The notice may be terminated by 16 filing with the office a notice of termination. The notice and 17 offering expire 12 months after filing the notice with the 18 office and are not eligible for renewal. The notice must: 19 (a) Be filed with the office at least 10 days before the 20 issuer commences an offering of securities or the offering is 21 displayed on a website of an intermediary in reliance upon the 22 exemption provided by this section. 23 (b) Indicate that the issuer is conducting an offering in 24 reliance upon the exemption provided by this section. 25 (c) Contain the name and contact information of the issuer. 26 (d) Identify any predecessors, owners, officers, directors, 27 and control persons or any person occupying a similar status or 28 performing a similar function of the issuer, including that 29 person’s title, his or her status as a partner, trustee, sole 30 proprietor or similar role, and his or her ownership percentage. 31 (e) Identify the federally insured financial institution, 32 authorized to do business in this state, in which investor funds 33 will be deposited, in accordance with the escrow agreement. 34 (f) Require an attestation under oath that the issuer, its 35 predecessors, affiliated issuers, directors, officers, and 36 control persons, or any other person occupying a similar status 37 or performing a similar function, are not currently and have not 38 been within the past 10 years the subject of regulatory or 39 criminal actions involving fraud or deceit. 40 (g) Include documentation verifying that the issuer is 41 organized under the laws of this state and authorized to do 42 business in this state. 43 (h) Include the intermediary’s website address where the 44 issuer’s securities will be offered. 45 (i) Include the target offering amount. 46 (6) The issuer must amend the notice form within 30 days 47 after any information contained in the notice becomes inaccurate 48 for any reason. The commission may require, by rule, an issuer 49 who has filed a notice under this section to file amendments 50 with the office. 51 (7) The issuer must provide to investors and the dealer or 52 intermediary, along with a copy to the office at the time the 53 notice is filed, and make available to potential investors 54 through the dealer or intermediary, a disclosure statement 55 containing material information about the issuer and the 56 offering, including: 57 (a) The name, legal status, physical address, and website 58 address of the issuer. 59 (b) The names of the directors, officers, and any person 60 occupying a similar status or performing a similar function, and 61 the name of each person holding more than 20 percent of the 62 shares of the issuer. 63 (c) A description of the business of the issuer and the 64 anticipated business plan of the issuer. 65 (d) A description of the stated purpose and intended use of 66 the proceeds of the offering. 67 (e) The target offering amount, the deadline to reach the 68 target offering amount, and regular updates regarding the 69 progress of the issuer in meeting the target offering amount. 70 (f) The price to the public of the securities or the method 71 for determining the price, provided that before the sale each 72 investor receives in writing the final price and all required 73 disclosures, with an opportunity to rescind the commitment to 74 purchase the securities. 75 (g) A description of the ownership and capital structure of 76 the issuer, including: 77 1. Terms of the securities being offered and each class of 78 security of the issuer, including how those terms may be 79 modified, and a summary of the differences between such 80 securities, including how the rights of the securities being 81 offered may be materially limited, diluted, or qualified by 82 rights of any other class of security of the issuer; 83 2. A description of how the exercise of the rights held by 84 the principal shareholders of the issuer could negatively impact 85 the purchasers of the securities being offered; 86 3. The name and ownership level of each existing 87 shareholder who owns more than 20 percent of any class of the 88 securities of the issuer; 89 4. How the securities being offered are being valued, and 90 examples of methods of how such securities may be valued by the 91 issuer in the future, including during subsequent corporate 92 actions; and 93 5. The risks to purchasers of the securities relating to 94 minority ownership in the issuer, the risks associated with 95 corporate action, including additional issuances of shares, a 96 sale of the issuer or of assets of the issuer, or transactions 97 with related parties. 98 (h) A description of the financial condition of the issuer. 99 1. For offerings that, in combination with all other 100 offerings of the issuer within the preceding 12-month period, 101 have target offering amounts of $100,000 or less, the 102 description must include the most recent income tax return filed 103 by the issuer, if any, and a financial statement that must be 104 certified by the principal executive officer of the issuer as 105 true and complete in all material respects. 106 2. For offerings that, in combination with all other 107 offerings of the issuer within the preceding 12-month period, 108 have target offering amounts of more than $100,000, but not more 109 than $500,000, the description must include financial statements 110 prepared in accordance with generally accepted accounting 111 principles and reviewed by a certified public accountant, as 112 defined in s. 473.302, who is independent of the issuer, using 113 professional standards and procedures for such review or 114 standards and procedures established by the office, by rule, for 115 such purpose. 116 3. For offerings that, in combination with all other 117 offerings of the issuer within the preceding 12-month period, 118 have target offering amounts of more than $500,000, the 119 description must include audited financial statements prepared 120 in accordance with generally accepted accounting principles by a 121 certified public accountant, as defined in s. 473.302, who is 122 independent of the issuer, and other requirements as the 123 commission may establish by rule. 124 (i) The following statement in boldface, conspicuous type 125 on the front page of the disclosure statement: 126 127 These securities are offered under and will be sold in reliance 128 upon an exemption from the registration requirements of federal 129 and Florida securities laws. Consequently, neither the Federal 130 Government nor the State of Florida has reviewed the accuracy or 131 completeness of any offering materials. In making an investment 132 decision, investors must rely on their own examination of the 133 issuer and the terms of the offering, including the merits and 134 risks involved. These securities are subject to restrictions on 135 transferability and resale and may not be transferred or resold 136 except as specifically authorized by applicable federal and 137 state securities laws. Investing in these securities involves a 138 speculative risk, and investors should be able to bear the loss 139 of their entire investment. 140 (8) The issuer shall provide to the office a copy of the 141 escrow agreement with a financial institution authorized to 142 conduct business in this state. All investor funds must be 143 deposited in the escrow account. The escrow agreement must 144 require that all offering proceeds be released to the issuer 145 only when the aggregate capital raised from all investors is 146 equal to or greater than the minimum target offering amount 147 specified in the disclosure statement as necessary to implement 148 the business plan, and that all investors will receive a full 149 return of their investment commitment if that target offering 150 amount is not raised by the date stated in the disclosure 151 statement. 152 (9) The sum of all cash and other consideration received 153 for sales of a security under this section may not exceed $1 154 million, less the aggregate amount received for all sales of 155 securities by the issuer within the 12 months preceding the 156 first offer or sale made in reliance upon this exemption. Offers 157 or sales to a person owning 20 percent or more of the 158 outstanding shares of any class or classes of securities or to 159 an officer, director, partner, or trustee, or a person occupying 160 a similar status, do not count toward this limitation. 161 (10) Unless the investor is an accredited investor as 162 defined by Rule 501 of Regulation D, adopted pursuant to the 163 Securities Act of 1933, the aggregate amount sold by an issuer 164 to an investor in transactions exempt from registration 165 requirements under this subsection in a 12-month period may not 166 exceed: 167 (a) The greater of $2,000 or 5 percent of the annual income 168 or net worth of such investor, if the annual income or the net 169 worth of the investor is less than $100,000. 170 (b) Ten percent of the annual income or net worth of such 171 investor, not to exceed a maximum aggregate amount sold of 172 $100,000, if either the annual income or net worth of the 173 investor is equal to or exceeds $100,000. 174 (11) The issuer shall file with the office and provide to 175 investors free of charge an annual report of the results of 176 operations and financial statements of the issuer within 45 days 177 of its fiscal year end, until no securities under this offering 178 are outstanding. The annual reports must meet the following 179 requirements: 180 (a) Include an analysis by management of the issuer of the 181 business operations and the financial condition of the issuer, 182 and disclose the compensation received by each director, 183 executive officer, and person having an ownership interest of 20 184 percent or more of the issuer, including cash compensation 185 earned since the previous report and on an annual basis, and any 186 bonuses, stock options, other rights to receive securities of 187 the issuer, or any affiliate of the issuer, or other 188 compensation received. 189 (b) Disclose any material change to information contained 190 in the disclosure statements which was not disclosed in a 191 previous report. 192 (12)(a) A notice-filing under this section shall be 193 summarily suspended by the office if the payment for the filing 194 is dishonored by the financial institution upon which the funds 195 are drawn. For purposes of s. 120.60(6), failure to pay the 196 required notice filing fee constitutes an immediate and serious 197 danger to the public health, safety, and welfare. The office 198 shall enter a final order revoking a notice-filing in which the 199 payment for the filing is dishonored by the financial 200 institution upon which the funds are drawn. 201 (b) A notice-filing under this section shall be summarily 202 suspended by the office if the issuer made a material false 203 statement in the issuer’s notice-filing. The summary suspension 204 shall remain in effect until a final order is entered by the 205 office. For purposes of s. 120.60(6), a material false statement 206 made in the issuer’s notice-filing constitutes an immediate and 207 serious danger to the public health, safety, and welfare. If an 208 issuer made a material false statement in the issuer’s notice 209 filing, the office shall enter a final order revoking the 210 notice-filing, issue a fine as prescribed by s. 517.221(3), and 211 issue permanent bars under s. 517.221(4) to the issuer and all 212 owners, officers, directors, and control persons, or any person 213 occupying a similar status or performing a similar function of 214 the issuer, including titles; status as a partner, trustee, sole 215 proprietor, or similar roles; and ownership percentage. 216 (13) All fees collected under this section become the 217 revenue of the state, except for those assessments provided for 218 under s. 517.131(1) until such time as the Securities Guaranty 219 Fund satisfies the statutory limits, and are not returnable in 220 the event that a notice filing is withdrawn. 221 (14) An intermediary must: 222 (a) Take measures, as established by commission rule, to 223 reduce the risk of fraud with respect to transactions, including 224 verifying that the issuer is in compliance with the requirements 225 of this section and, if necessary, denying an issuer access to 226 its platform if the intermediary believes it is unable to 227 adequately assess the risk of fraud of the issuer or its 228 potential offering. 229 (b) Provide basic information on its website regarding the 230 high risk of investment in and limitation on the resale of 231 exempt securities and the potential for loss of an entire 232 investment. The basic information must include: 233 1. A description of the escrow agreement that the issuer 234 has executed and the conditions for release of such funds to the 235 issuer in accordance with the agreement and subsection (4). 236 2. A description of whether financial information provided 237 by the issuer has been audited by an independent certified 238 public accountant, as defined in s. 473.302. 239 (c) Obtain a zip code or residence address from each 240 potential investor who seeks to view information regarding 241 specific investment opportunities, in order to confirm that the 242 potential investor is a resident of this state. 243 (d) Obtain and verify, pursuant to commission rule, a valid 244 Florida driver license number or official identification card 245 number from each investor before purchase of a security or other 246 information, as defined by commission rule, to confirm that the 247 investor is a resident of the state. 248 (e) Obtain an affidavit from each investor stating that the 249 investment being made by the investor is consistent with the 250 income requirements of subsection (10). 251 (f) Direct the release of investor funds in escrow in 252 accordance with subsection (4). 253 (g) Direct investors to transmit funds directly to the 254 financial institution designated in the escrow agreement to hold 255 the funds for the benefit of the investor. 256 (h) Provide a monthly update for each offering, after the 257 first full month after the date of the offering. The update must 258 be accessible on the intermediary’s website and must display the 259 date and amount of each sale of securities, and each 260 cancellation of commitment to invest in the previous calendar 261 month. 262 (i) Require each investor to certify in writing, including 263 as part of such certification his or her signature and his or 264 her initials next to each paragraph of the certification, as 265 follows: 266 267 I understand and acknowledge that: 268 269 I am investing in a high-risk, speculative business venture. I 270 may lose all of my investment, and I can afford the loss of my 271 investment. 272 273 This offering has not been reviewed or approved by any state or 274 federal securities commission or other regulatory authority and 275 no regulatory authority has confirmed the accuracy or determined 276 the adequacy of any disclosure made to me relating to this 277 offering. 278 279 The securities I am acquiring in this offering are illiquid and 280 are subject to possible dilution. There is no ready market for 281 the sale of the securities. It may be difficult or impossible 282 for me to sell or otherwise dispose of the securities, and I may 283 be required to hold the securities indefinitely. 284 285 I may be subject to tax on my share of the taxable income and 286 losses of the issuer, whether or not I have sold or otherwise 287 disposed of my investment or received any dividends or other 288 distributions from the issuer. 289 290 By entering into this transaction with the issuer, I am 291 affirmatively representing myself as being a Florida resident at 292 the time this contract is formed, and if this representation is 293 subsequently shown to be false, the contract is void. 294 295 If I resell any of the securities I am acquiring in this 296 offering to a person that is not a Florida resident within 9 297 months after the closing of the offering, my contract with the 298 issuer for the purchase of these securities is void. 299 300 (j) Require each investor to answer questions demonstrating 301 an understanding of the level of risk generally applicable to 302 investments in startups, emerging businesses, and small issuers, 303 and an understanding of the risk of illiquidity. 304 (k) Take reasonable steps to protect personal information 305 collected from investors, as required by s. 501.171. 306 (l) Prohibit its directors and officers from having any 307 financial interest in the issuer using its services. 308 (m) Implement written policies and procedures that are 309 reasonably designed to achieve compliance with federal and state 310 securities laws; comply with anti-money laundering requirements 311 of 31 C.F.R. ch. X applicable to registered brokers; and comply 312 with the privacy requirements of 17 C.F.R. part 248 as they 313 apply to brokers. 314 (15) An intermediary not registered as a dealer under s. 315 517.12(6) may not: 316 (a) Offer investment advice or recommendations. A refusal 317 by an intermediary to post an offering that it deems not 318 credible or that represents a potential for fraud may not be 319 construed as an offer of investment advice or recommendation. 320 (b) Solicit purchases, sales, or offers to buy securities 321 offered or displayed on its website. 322 (c) Compensate employees, agents, or other persons for the 323 solicitation or based on the sale of securities offered or 324 displayed on its website. 325 (d) Hold, manage, possess, or otherwise handle investor 326 funds or securities. 327 (e) Compensate promoters, finders, or lead generators for 328 providing the intermediary with the personal identifying 329 information of any potential investor. 330 (f) Engage in any other activities set forth by commission 331 rule. 332 (16) All funds received from investors must be directed to 333 the financial institution designated in the escrow agreement to 334 hold the funds and must be used in accordance with 335 representations made to investors by the intermediary. If an 336 investor cancels a commitment to invest, the intermediary must 337 direct the financial institution designated to hold the funds to 338 promptly refund the funds of the investor. 339 Section 4. Section 517.12, Florida Statutes, is amended to 340 read: 341 517.12 Registration of dealers, associated persons, 342 intermediaries, and investment advisers.— 343 (1) No dealer, associated person, or issuer of securities 344 shall sell or offer for sale any securities in or from offices 345 in this state, or sell securities to persons in this state from 346 offices outside this state, by mail or otherwise, unless the 347 person has been registered with the office pursuant to the 348 provisions of this section. The office shall not register any 349 person as an associated person of a dealer unless the dealer 350 with which the applicant seeks registration is lawfully 351 registered with the office pursuant to this chapter. 352 (2) The registration requirements of this section do not 353 apply to the issuers of securities exempted by s. 517.051(1)-(8) 354 and (10). 355 (3) Except as otherwise provided in s. 517.061(11)(a)4., 356 (13), (16), (17), or (19), the registration requirements of this 357 section do not apply in a transaction exempted by s. 517.061(1) 358 (12), (14), and (15). 359 (4) No investment adviser or associated person of an 360 investment adviser or federal covered adviser shall engage in 361 business from offices in this state, or render investment advice 362 to persons of this state, by mail or otherwise, unless the 363 federal covered adviser has made a notice-filing with the office 364 pursuant to s. 517.1201 or the investment adviser is registered 365 pursuant to the provisions of this chapter and associated 366 persons of the federal covered adviser or investment adviser 367 have been registered with the office pursuant to this section. 368 The office shall not register any person or an associated person 369 of a federal covered adviser or an investment adviser unless the 370 federal covered adviser or investment adviser with which the 371 applicant seeks registration is in compliance with the notice 372 filing requirements of s. 517.1201 or is lawfully registered 373 with the office pursuant to this chapter. A dealer or associated 374 person who is registered pursuant to this section may render 375 investment advice upon notification to and approval from the 376 office. 377 (5) No dealer or investment adviser shall conduct business 378 from a branch office within this state unless the branch office 379 is notice-filed with the office pursuant to s. 517.1202. 380 (6) A dealer, associated person, or investment adviser, in 381 order to obtain registration, must file with the office a 382 written application, on a form which the commission may by rule 383 prescribe. The commission may establish, by rule, procedures for 384 depositing fees and filing documents by electronic means 385 provided such procedures provide the office with the information 386 and data required by this section. Each dealer or investment 387 adviser must also file an irrevocable written consent to service 388 of civil process similar to that provided for in s. 517.101. The 389 application shall contain such information as the commission or 390 office may require concerning such matters as: 391 (a) The name of the applicant and the address of its 392 principal office and each office in this state. 393 (b) The applicant’s form and place of organization; and, if 394 the applicant is a corporation, a copy of its articles of 395 incorporation and amendments to the articles of incorporation 396 or, if a partnership, a copy of the partnership agreement. 397 (c) The applicant’s proposed method of doing business and 398 financial condition and history, including a certified financial 399 statement showing all assets and all liabilities, including 400 contingent liabilities of the applicant as of a date not more 401 than 90 days prior to the filing of the application. 402 (d) The names and addresses of all associated persons of 403 the applicant to be employed in this state and the offices to 404 which they will be assigned. 405 (7) The application must also contain such information as 406 the commission or office may require about the applicant; any 407 member, principal, or director of the applicant or any person 408 having a similar status or performing similar functions; any 409 person directly or indirectly controlling the applicant; or any 410 employee of a dealer or of an investment adviser rendering 411 investment advisory services. Each applicant and any direct 412 owners, principals, or indirect owners that are required to be 413 reported on Form BD or Form ADV pursuant to subsection (15) 414 shall submit fingerprints for live-scan processing in accordance 415 with rules adopted by the commission. The fingerprints may be 416 submitted through a third-party vendor authorized by the 417 Department of Law Enforcement to provide live-scan 418 fingerprinting. The costs of fingerprint processing shall be 419 borne by the person subject to the background check. The 420 Department of Law Enforcement shall conduct a state criminal 421 history background check, and a federal criminal history 422 background check must be conducted through the Federal Bureau of 423 Investigation. The office shall review the results of the state 424 and federal criminal history background checks and determine 425 whether the applicant meets licensure requirements. The 426 commission may waive, by rule, the requirement that applicants, 427 including any direct owners, principals, or indirect owners that 428 are required to be reported on Form BD or Form ADV pursuant to 429 subsection (15), submit fingerprints or the requirement that 430 such fingerprints be processed by the Department of Law 431 Enforcement or the Federal Bureau of Investigation. The 432 commission or office may require information about any such 433 applicant or person concerning such matters as: 434 (a) His or her full name, and any other names by which he 435 or she may have been known, and his or her age, social security 436 number, photograph, qualifications, and educational and business 437 history. 438 (b) Any injunction or administrative order by a state or 439 federal agency, national securities exchange, or national 440 securities association involving a security or any aspect of the 441 securities business and any injunction or administrative order 442 by a state or federal agency regulating banking, insurance, 443 finance, or small loan companies, real estate, mortgage brokers, 444 or other related or similar industries, which injunctions or 445 administrative orders relate to such person. 446 (c) His or her conviction of, or plea of nolo contendere 447 to, a criminal offense or his or her commission of any acts 448 which would be grounds for refusal of an application under s. 449 517.161. 450 (d) The names and addresses of other persons of whom the 451 office may inquire as to his or her character, reputation, and 452 financial responsibility. 453 (8) The commission or office may require the applicant or 454 one or more principals or general partners, or natural persons 455 exercising similar functions, or any associated person applicant 456 to successfully pass oral or written examinations. Because any 457 principal, manager, supervisor, or person exercising similar 458 functions shall be responsible for the acts of the associated 459 persons affiliated with a dealer, the examination standards may 460 be higher for a dealer, office manager, principal, or person 461 exercising similar functions than for a nonsupervisory 462 associated person. The commission may waive the examination 463 process when it determines that such examinations are not in the 464 public interest. The office shall waive the examination 465 requirements for any person who has passed any tests as 466 prescribed in s. 15(b)(7) of the Securities Exchange Act of 1934 467 that relates to the position to be filled by the applicant. 468 (9)(a) All dealers, except securities dealers who are 469 designated by the Federal Reserve Bank of New York as primary 470 government securities dealers or securities dealers registered 471 as issuers of securities, shall comply with the net capital and 472 ratio requirements imposed pursuant to the Securities Exchange 473 Act of 1934. The commission may by rule require a dealer to file 474 with the office any financial or operational information that is 475 required to be filed by the Securities Exchange Act of 1934 or 476 any rules adopted under such act. 477 (b) The commission may by rule require the maintenance of a 478 minimum net capital for securities dealers who are designated by 479 the Federal Reserve Bank of New York as primary government 480 securities dealers and securities dealers registered as issuers 481 of securities and investment advisers, or prescribe a ratio 482 between net capital and aggregate indebtedness, to assure 483 adequate protection for the investing public. The provisions of 484 this section shall not apply to any investment adviser that 485 maintains its principal place of business in a state other than 486 this state, provided such investment adviser is registered in 487 the state where it maintains its principal place of business and 488 is in compliance with such state’s net capital requirements. 489 (10) An applicant for registration shall pay an assessment 490 fee of $200, in the case of a dealer or investment adviser, or 491 $50, in the case of an associated person. An associated person 492 may be assessed an additional fee to cover the cost for the 493 fingerprints to be processed by the office. Such fee shall be 494 determined by rule of the commission. Such fees become the 495 revenue of the state, except for those assessments provided for 496 under s. 517.131(1) until such time as the Securities Guaranty 497 Fund satisfies the statutory limits, and are not returnable in 498 the event that registration is withdrawn or not granted. 499 (11) If the office finds that the applicant is of good 500 repute and character and has complied with the provisions of 501 this chapter and the rules made pursuant hereto, it shall 502 register the applicant. The registration of each dealer, 503 investment adviser, and associated person expires on December 31 504 of the year the registration became effective unless the 505 registrant has renewed his or her registration on or before that 506 date. Registration may be renewed by furnishing such information 507 as the commission may require, together with payment of the fee 508 required in subsection (10) for dealers, investment advisers, or 509 associated persons and the payment of any amount lawfully due 510 and owing to the office pursuant to any order of the office or 511 pursuant to any agreement with the office. Any dealer, 512 investment adviser, or associated person who has not renewed a 513 registration by the time the current registration expires may 514 request reinstatement of such registration by filing with the 515 office, on or before January 31 of the year following the year 516 of expiration, such information as may be required by the 517 commission, together with payment of the fee required in 518 subsection (10) for dealers, investment advisers, or associated 519 persons and a late fee equal to the amount of such fee. Any 520 reinstatement of registration granted by the office during the 521 month of January shall be deemed effective retroactive to 522 January 1 of that year. 523 (12)(a) The office may issue a license to a dealer, 524 investment adviser, or associated person to evidence 525 registration under this chapter. The office may require the 526 return to the office of any license it may issue prior to 527 issuing a new license. 528 (b) Every dealer, investment adviser, or federal covered 529 adviser shall promptly file with the office, as prescribed by 530 rules adopted by the commission, notice as to the termination of 531 employment of any associated person registered for such dealer 532 or investment adviser in this state and shall also furnish the 533 reason or reasons for such termination. 534 (c) Each dealer or investment adviser shall designate in 535 writing to, and register with, the office a manager for each 536 office the dealer or investment adviser has in this state. 537 (13) Changes in registration occasioned by changes in 538 personnel of a partnership or in the principals, copartners, 539 officers, or directors of any dealer or investment adviser or by 540 changes of any material fact or method of doing business shall 541 be reported by written amendment in such form and at such time 542 as the commission may specify. In any case in which a person or 543 a group of persons, directly or indirectly or acting by or 544 through one or more persons, proposes to purchase or acquire a 545 controlling interest in a registered dealer or investment 546 adviser, such person or group shall submit an initial 547 application for registration as a dealer or investment adviser 548 prior to such purchase or acquisition. The commission shall 549 adopt rules providing for waiver of the application required by 550 this subsection where control of a registered dealer or 551 investment adviser is to be acquired by another dealer or 552 investment adviser registered under this chapter or where the 553 application is otherwise unnecessary in the public interest. 554 (14) Every dealer or investment adviser registered or 555 required to be registered or branch office notice-filed or 556 required to be notice-filed with the office shall keep records 557 of all currency transactions in excess of $10,000 and shall file 558 reports, as prescribed under the financial recordkeeping 559 regulations in 31 C.F.R. part 103, with the office when 560 transactions occur in or from this state. All reports required 561 by this subsection to be filed with the office shall be 562 confidential and exempt from s. 119.07(1) except that any law 563 enforcement agency or the Department of Revenue shall have 564 access to, and shall be authorized to inspect and copy, such 565 reports. 566 (15)(a) In order to facilitate uniformity and streamline 567 procedures for persons who are subject to registration or 568 notification in multiple jurisdictions, the commission may adopt 569 by rule uniform forms that have been approved by the Securities 570 and Exchange Commission, and any subsequent amendments to such 571 forms, if the forms are substantially consistent with the 572 provisions of this chapter. Uniform forms that the commission 573 may adopt to administer this section include, but are not 574 limited to: 575 1. Form BR, Uniform Branch Office Registration Form, 576 adopted October 2005. 577 2. Form U4, Uniform Application for Securities Industry 578 Registration or Transfer, adopted October 2005. 579 3. Form U5, Uniform Termination Notice for Securities 580 Industry Registration, adopted October 2005. 581 4. Form ADV, Uniform Application for Investment Adviser 582 Registration, adopted October 2003. 583 5. Form ADV-W, Notice of Withdrawal from Registration as an 584 Investment Adviser, adopted October 2003. 585 6. Form BD, Uniform Application for Broker-Dealer 586 Registration, adopted July 1999. 587 7. Form BDW, Uniform Request for Broker-Dealer Withdrawal, 588 adopted August 1999. 589 (b) In lieu of filing with the office the applications 590 specified in subsection (6), the fees required by subsection 591 (10), the renewals required by subsection (11), and the 592 termination notices required by subsection (12), the commission 593 may by rule establish procedures for the deposit of such fees 594 and documents with the Central Registration Depository or the 595 Investment Adviser Registration Depository of the Financial 596 Industry Regulatory Authority, as developed under contract with 597 the North American Securities Administrators Association, Inc. 598 (16) Except for securities dealers who are designated by 599 the Federal Reserve Bank of New York as primary government 600 securities dealers or securities dealers registered as issuers 601 of securities, every applicant for initial or renewal 602 registration as a securities dealer and every person registered 603 as a securities dealer shall be registered as a broker or dealer 604 with the Securities and Exchange Commission and shall be subject 605 to insurance coverage by the Securities Investor Protection 606 Corporation. 607 (17)(a) A dealer that is located in Canada, does not have 608 an office or other physical presence in this state, and has made 609 a notice-filing in accordance with this subsection is exempt 610 from the registration requirements of this section and may 611 effect transactions in securities with or for, or induce or 612 attempt to induce the purchase or sale of any security by: 613 1. A person from Canada who is present in this state and 614 with whom the Canadian dealer had a bona fide dealer-client 615 relationship before the person entered the United States; or 616 2. A person from Canada who is present in this state and 617 whose transactions are in a self-directed, tax-advantaged 618 retirement plan in Canada of which the person is the holder or 619 contributor. 620 (b) A notice-filing under this subsection must consist of 621 documents the commission by rule requires to be filed, together 622 with a consent to service of process and a nonrefundable filing 623 fee of $200. The commission may establish by rule procedures for 624 the deposit of fees and the filing of documents to be made by 625 electronic means, if such procedures provide the office with the 626 information and data required by this section. 627 (c) A Canadian dealer may make a notice-filing under this 628 subsection if the dealer provides to the office: 629 1. A notice-filing in the form the commission requires by 630 rule. 631 2. A consent to service of process. 632 3. Evidence that the Canadian dealer is registered as a 633 dealer in the jurisdiction in which the dealer’s main office is 634 located. 635 4. Evidence that the Canadian dealer is a member of a self 636 regulatory organization or stock exchange in Canada. 637 (d) The office may issue a permit to evidence the 638 effectiveness of a notice-filing for a Canadian dealer. 639 (e) A notice-filing is effective upon receipt by the 640 office. A notice-filing expires on December 31 of the year in 641 which the filing becomes effective unless the Canadian dealer 642 has renewed the filing on or before that date. A Canadian dealer 643 may annually renew a notice-filing by furnishing to the office 644 such information as the office requires together with a renewal 645 fee of $200 and the payment of any amount due and owing the 646 office pursuant to any agreement with the office. Any Canadian 647 dealer who has not renewed a notice-filing by the time a current 648 notice-filing expires may request reinstatement of such notice 649 filing by filing with the office, on or before January 31 of the 650 year following the year the notice-filing expires, such 651 information as the commission requires by rule, together with 652 the payment of $200 and a late fee of $200. A reinstatement of a 653 notice-filing granted by the office during the month of January 654 is effective retroactively to January 1 of that year. 655 (f) An associated person who represents a Canadian dealer 656 who has made a notice-filing under this subsection is exempt 657 from the registration requirements of this section and may 658 effect transactions in securities in this state as permitted for 659 a dealer under paragraph (a) if such person is registered in the 660 jurisdiction from which he or she is effecting transactions into 661 this state. 662 (g) A Canadian dealer who has made a notice-filing under 663 this subsection shall: 664 1. Maintain its provincial or territorial registration and 665 its membership in a self-regulatory organization or stock 666 exchange in good standing. 667 2. Provide the office upon request with its books and 668 records relating to its business in this state as a dealer. 669 3. Provide the office upon request notice of each civil, 670 criminal, or administrative action initiated against the dealer. 671 4. Disclose to its clients in this state that the dealer 672 and its associated persons are not subject to the full 673 regulatory requirements under this chapter. 674 5. Correct any inaccurate information within 30 days after 675 the information contained in the notice-filing becomes 676 inaccurate for any reason. 677 (h) An associated person representing a Canadian dealer who 678 has made a notice-filing under this subsection shall: 679 1. Maintain provincial or territorial registration in good 680 standing. 681 2. Provide the office upon request with notice of each 682 civil, criminal, or administrative action initiated against such 683 person. 684 (i) A notice-filing may be terminated by filing notice of 685 such termination with the office. Unless another date is 686 specified by the Canadian dealer, such notice is effective upon 687 receipt of the notice by the office. 688 (j) All fees collected under this subsection become the 689 revenue of the state, except those assessments provided for 690 under s. 517.131(1), until the Securities Guaranty Fund has 691 satisfied the statutory limits. Such fees are not returnable if 692 a notice-filing is withdrawn. 693 (18) Every dealer or associated person registered or 694 required to be registered with the office shall satisfy any 695 continuing education requirements established by rule pursuant 696 to law. 697 (19) The registration requirements of this section which 698 apply to investment advisers and associated persons do not apply 699 to a commodity trading adviser who: 700 (a) Is registered as such with the Commodity Futures 701 Trading Commission pursuant to the Commodity Exchange Act. 702 (b) Advises or exercises trading discretion, with respect 703 to foreign currency options listed and traded exclusively on the 704 Philadelphia Stock Exchange, on behalf of an “appropriate 705 person” as defined by the Commodity Exchange Act. 706 707 The exemption provided in this subsection does not apply to a 708 commodity trading adviser who engages in other activities that 709 require registration under this chapter. 710 (20) An intermediary may not engage in business in this 711 state unless the intermediary is registered as a dealer or as an 712 intermediary with the office pursuant to this section to 713 facilitate the offer or sale of securities in accordance with s. 714 517.0611. An intermediary, in order to obtain registration, must 715 file with the office a written application on a form prescribed 716 by commission rule and pay a registration fee of $200. The 717 commission may establish by rule procedures for depositing fees 718 and filing documents by electronic means if such procedures 719 provide the office with the information and data required by 720 this section. Each intermediary must also file an irrevocable 721 written consent to service of civil process, as provided for in 722 s. 517.101. 723 724 ================= T I T L E A M E N D M E N T ================ 725 And the title is amended as follows: 726 Delete line 1438 727 and insert: 728 and intermediaries offering such securities; requiring 729 the issuer to provide to the office a copy of a 730 specified escrow agreement; limiting