Monday, February 19, 2018

Iowa proposes BD merger exemption, IA business succession rule

By Jay Fishman, J.D.

The Iowa Insurance Division has proposed the following amendments and additions to its securities rules:
  • Adds a merger acquisition exemption from licensing for qualified broker-dealers; Iowa adopts the NASAA model rule’s merger acquisition broker exemption; 
  • Changes its business continuity and succession plan rule for investment advisers from a licensing to an examination requirement; 
  • Mandates the use of NASAA’s Electronic Filing Depository (EFD) for unit investment trust notice filings under federal Securities Act Section 18(b)(2), starting January 1, 2019; 
  • Amends its intrastate crowdfunding exemption to bring it up-to-date with more current state requirements; 
  • Adds FINRA’s Securities Industry Essential Exams to the written examination requirement for investment adviser representatives; and 
  • Updates federal Advisers Act references in its private fund adviser exemption. 
Public comments and hearing. Interested persons may mail written comments about the rule proposals to Craig Goettsch at the Insurance Division, Two Ruan Center, 601 Locust, Fourth Floor, Des Moines, Iowa 50309. Comments may alternatively be emailed to or faxed to (515) 281-3059. Comments must be received by 4:30 p.m. on March 6, 2018, the date of the public hearing on the proposals at 10:30 a.m.

The anticipated effective date of the proposals is May 16, 2018.