Friday, August 13, 2010

Iowa Proposes Broker-Dealer, Agent and Investment Company Rule Changes

Rule changes proposed by the Iowa Securities Bureau would include amending broker-dealer registration requirements, increasing agent fees and mandating investment companies to submit their notice filings electronically.

Public comments. Interested persons may submit written comments to Rosanne Mead, Assistant Insurance Commissioner, at the Iowa Insurance Division, 330 Maple Street, Des Moines, Iowa 50319; fax (515) 281-3059. Comments must be received by September 3, 2010, the date of the public hearing at 10:00 a.m.

Investment companies. Investment companies making a notice filing on Form NF, Uniform Investment Company Notice Filing, on or after January 1, 2011 must implement a system that permits them to submit their documents and fees electronically on or after January 1, 2011, by following the instructions on the Insurance Division’s Web site at

Initial broker-dealer application requirements. FINRA member broker-dealer applicants would file Form BD, Uniform Application for Broker-Dealer Registration, and a $200 fee with the CRD. Non-FINRA member broker-dealer applicants would file a signed and notarized Form BD and $200 with the Administrator. NOTE: The proposed amendment would eliminate the audited financial statement, BD affidavit and consent to service of process requirements.

Fee increase for agents. The fee for agents of broker-dealers (whether FINRA or non-FINRA), agents of Canadian broker-dealers and agents of issuers would be increased to $40, from $30.

Definitions. The definition of “FINRA” would replace the definition of “NASD” in the definitions rule.