808 Ky. Admin. Regs. 10:020 – Capital, records and reporting requirements of broker-dealers.

RELATES TO:

KRS 292.330, 292.460, 15 U.S.C. 78o(h)

STATUTORY AUTHORITY:

KRS 292.500(3), 15 U.S.C. 78o(h)

NECESSITY, FUNCTION, AND CONFORMITY:

KRS 292.500(3) authorizes the executive director to promulgate administrative regulations necessary to carry out the provisions of KRS Chapter 292. 15 USC 78o(h) prohibits a state from establishing capital, custody, margin, financial responsibility, making and keeping records, bonding, or financial or operational reporting requirements for a broker, dealer, municipal dealer, government security broker, or government security dealer that differs from, or are in addition to, the federal requirements. This administrative regulation establishes the state requirements for a person registered pursuant to the federal requirements established in 15 USC 78o.

Section 1. A broker-dealer, municipal security dealer, government security broker, or government security dealer shall:
1. (1) Be deemed to have complied with the requirements established in KRS 292.330 relating to capital, custody, margin, financial responsibility, making and keeping records, bonding, or financial or operational reporting if:
  1. (a) The person is:
    1. 1. Registered with the United States Securities and Exchange Commission pursuant to 15 USC 78o; and
    2. 2. In compliance with the rules and regulations enacted by the United States Securities and Exchange Commission pursuant thereto;
  2. (b) A copy of the information kept or provided to the United States Securities and Exchange Commission is made available or provided to the office as required by the executive director; and
2. (2) Comply with a reasonable request made by the executive director or a designated employee of the office for the assembly and production of information required to conduct an examination pursuant to KRS 292.330 or an investigation pursuant to KRS 292.460.

History

(SR 330(5)-1, 2, 3, 4, 5, 6, 7; 1 Ky.R. 1092; eff. 6-11-75; Am. 11 Ky.R. 1904; eff. 7-9-85; 24 Ky.R. 2173; 25 Ky.R. 84; eff. 6-25-98; Crt eff. 2-27-2020.)