710 IAC 4-7-2 Examination for registration

Sec. 2. (a) Unless specifically exempt, as hereinafter provided, the broker-dealer examinations in the form and content prescribed or approved by the commissioner must be taken and passed by every principal of a broker-dealer in order to test the principal's knowledge of: (1) the securities business; (2) state securities laws; and (3) the responsibilities of a supervisor in the securities business; before the applicant will be considered eligible for registration. (b) The commissioner shall establish or approve the standards for a minimum acceptable grade in determining each applicant's qualification for registration under this provision. The examination requirements for broker-dealer applicants shall be higher than those for agent applicants. (c) Upon failure to receive a minimum passing grade the principal of the broker-dealer applicant may retake the examination on the next date available. A second failure, or failure to take or retake the examination within a thirty (30) day period from the date the broker-dealer application was filed, shall be sufficient grounds for denial of the broker-dealer application and an order to that effect may be entered by the commissioner. The broker-dealer applicant shall be considered ineligible for licensing during a period of three (3) months, at which time a new broker-dealer application may be filed and its eligibility reexamined. The original filing fee shall not be refunded nor applied to a subsequent application for registration under this provision. However, if the: (1) broker-dealer applicant is qualified; (2) broker-dealer applicant meets the requirements of subsection (d); and (3) principal of that applicant who fails the examination qualifies for an exemption under subsection (f); then the broker-dealer application shall not be denied. (d) The following are the examination requirements for principals of a broker-dealer: (1) In the case of: (A) a partnership; (B) a corporation; or (C) another association; (2) at least two (2): (A) partners; (B) officers; (C) directors; or (D) persons occupying a similar position; (3) must satisfy the examination requirement. (4) However, only one (1) of those persons must satisfy the examination requirement if the broker-dealer maintains no branch offices and employs no more than ten (10) agents. (e) An application shall be deemed incomplete until there is a showing of compliance with the examination requirements or an exemption from those requirements. (f) The examination requirements may be waived by a proper showing or certification that the applicant: (1) has: (A) taken an examination in the form and content approved by the commissioner within the preceding two (2) years; and (B) passed the examination with the minimum acceptable passing grade for broker-dealer applicants; or (2) has: (A) taken an examination in the form and content prescribed or approved by the commissioner; (B) attained an acceptable passing grade; and (C) thereafter, remained continuously in the securities business, duly licensed by another state; prior to making application.