Arkansas Administrative Code Agency 214 - Arkansas Securities Department
Here’s a refined overview of Agency 214 – Arkansas Securities Department, as outlined in the Arkansas Administrative Code:
📘 Scope & Core Rules
The Arkansas Securities Department (Agency 214) oversees regulation of securities, brokers, investment advisers, mortgage lenders, money service businesses, and related financial activities under several rule chapters:
Rule 214.00.07‑001: Fair Mortgage Lending Act Rules
Rule 214.00.08‑001: Uniform Money Services Act
Rule 214.00.09‑001 / .11‑001 / .17‑001 / .18‑001, etc.: Rules of the Securities Commissioner (registration, definitions, procedures, enforcement, etc.) (law.cornell.edu)
These collectively define how the Department registers and licenses entities, conducts examinations, and enforces Arkansas’s Securities Act.
🧾 Key Definitions (Rule 102.01)
Includes definitions for:
Broker‑dealer, agent, investment adviser, issuer, affiliate, client, Commissioner, Department, etc. (regulations.justia.com)
These are essential for interpreting rights, obligations, and scope of conduct under the Act.
🔄 Registration Procedures (Chapter 3, Rule 302 / Rule 214.00.09‑001)
Broker‑Dealer & Agents
Requires registration via FINRA’s CRD system using Forms BD, BR, and U4.
Mandatory fingerprinting, bonding, exams, financials, and annual renewals. (regulations.justia.com)
Issuers & Investment Advisers
Investment adviser registration follows Form ADV and may include cybersecurity policy requirements (added in ~2020 under NASAA model rules). (arkleg.state.ar.us)
🛂 Supervision & Operational Standards
Firms must maintain written supervisory procedures, including business continuity plans, cybersecurity, and physical security measures. (law.cornell.edu)
Annual internal inspections of branch offices are required.
🚫 Prohibited Practices (Rule 308)
Defines Unfair, Misleading, or Unethical Practices by broker‑dealers/agents and Fraudulent or Dishonest Practices by investment advisers.
Includes fraud deterrents, suitability obligations, marketing limitations, and cybersecurity compliance. (arkleg.state.ar.us)
📃 Forms & Notice Filings (Rule 204)
Approved forms include:
Form NF (Notices for investment companies),
Form ADV (for advisers),
Regulation A Tier 2 notices,
among others. (law.cornell.edu)
🆓 Exemptions & Updates
NASAA-model rules introduced exemptions for M&A brokers and formalized new cybersecurity policy obligations in 2020. (arkleg.state.ar.us)
Periodic updates reflect state revisions like address updates, compliance with Acts (e.g., Act 110 of 2019), and evolving federal standards. (arkleg.state.ar.us)
⚖️ Legal Authority & Enforcement
Based on Ark. Code Ann. §§ 23‑42‑101 et seq., with Rulemaking authority under § 23‑42‑204(a).
The Commissioner may adopt rules to protect investors, classify registrants, mandate forms/fees, and enforce compliance. (arkleg.state.ar.us)
📝 Summary Table
Topic
Key Points
Definitions (Rule 102)
Broker-dealer, agent, adviser, client, Commissioner
Registration (Rule 302)
CRD/FINRA, fingerprinting, bonding, exam & renewals
Supervision (Rule 301)
Written procedures, BCP, cybersecurity, annual inspections
Prohibited Practices (Rule 308)
Fraud, suitability, advertising, cybersecurity
Forms (Rule 204)
Form NF, ADV, Reg A Tier 2
Exemptions & Updates
M&A brokers exempted, cybersecurity added
Legal Authority
Ark. §§ 23‑42‑204(a), Rules of the Commissioner
🔍 Where to Find Full Text
Check the Arkansas Securities Department’s Legal page for up‑to‑date PDFs, rule amendments, and Commissioner orders (arkleg.state.ar.us, securities.arkansas.gov, regulations.justia.com, law.cornell.edu), or visit the Justia/ Cornell LII sites for Rule 214 overviews. (regulations.justia.com)
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