Industry Professionals

Compliance & Registration

Examinations

Compliance Staff
The compliance staff conducts periodic examinations or examinations for cause of registered broker-dealer and investment adviser offices inside and outside of Kansas. An examination may be conducted at any time and without advance notice. The compliance staff may copy and remove for examination copies of all records that are determined to be reasonably necessary or appropriate to conduct the examination. Examinations by the compliance staff are authorized under the Kansas Uniform Securities Act, K.S.A. 17-12a411(d).

Kansas Open Records Act
Records obtained during an examination are not subject to dissemination under the Kansas Open Records Act. However, as provided in K.S.A. 17-12a607(c) the records can be shared with other regulators or disclosed for the purpose of a civil or administrative action. In addition, all correspondence between the compliance staff and the registrant is likely to be subject to the Kansas Open Records Act once the examination is concluded, including any informal resolution of deficiencies that is not reportable on the CRD system. Confidential information such as social security numbers and client identifiers would be redacted from any such disclosure.

Professional Education

Seminars
Periodically, our staff hosts seminars designed to provide investment professionals with useful information on topics of current interest relating to state regulation of the securities industry.

In addition to providing an insight into the regulatory process, these meetings provide an opportunity for members of the industry to meet one on one with agency staff to discuss any issues they might have.

Assistance
Agency staff is available any time to assist you in understanding and complying with the provisions of the Kansas Uniform Securities Act or to make presentations to groups of industry professionals regarding regulatory issues pertaining to the securities industry in Kansas.

Report Unethical Conduct

Contact Us
Our office is open to the public Monday through Friday from 8:00 a.m. to 5:00 p.m. We are closed on official state holidays. Individual investors may contact our office to request a background report or file a complaint.

Office of the Securities Commissioner
1300 SW Arrowhead Road
Topeka, KS 66604
785-296-3071
800-432-2484

Administrative Proceedings

Cases
Proceedings are listed by date and respondent names.

Request Copies of Proceedings
To obtain official copies of the proceedings, please read our Public Records Policy and call our office at 785-296-3071, email us, or you may submit your request in writing at:

Office of the Securities Commissioner
1300 SW Arrowhead Road
Topeka, KS 66604

When writing, provide the case name and dates of records you would like to receive and include your name, mailing address, daytime telephone number, and email address in your request. The public information officer will review each request and, upon approval, provide paper or electronic copies of the documents.

Notice to Investors: If you are not a resident of Kansas and feel you have been affected by actions contained in our proceedings contact your state securities regulator for assistance. To locate your securities regulator go to North American Securities Administrators Association. If you choose to contact your state securities regulator, please inform him/her of the action taken by the State of Kansas.

Broker-Dealers

For information regarding applications, forms, and how to search an investment professional’s background, please see below:

Broker-Dealer Registration Requirements

Online Application
Applications for registration as a broker-dealer in Kansas shall be filed on Form BD with the Central Registration Depository (CRD) as required by K.A.R. 81-3-1(b) along with a fee of $100 as required by K.A.R. 81-3-2(a), unless the provisions of K.A.R. 81-3-1(b)(1)(C) apply for a broker-dealer that is not required to file with the SEC or FINRA.

Required Documents
Each applicant for initial registration as a broker-dealer must also file the following documents with the Office of the Kansas Securities Commissioner (KSC):
Audited financial statements for the applicant’s last fiscal year, if required by the SEC and FINRA;

– and –

Part II of the applicant’s most recent FOCUS report that includes a balance sheet dated within 90 days of filing for registration, if required by the SEC and FINRA;

– or –

A balance sheet dated within 90 days of filing for registration with notes presented in conformity with GAAP and a net capital computation.

Amendments, Renewals or Withdrawals
All filings to amend Form BD, to renew a registration or to withdraw registration using Form BDW must be submitted to CRD unless the provisions of K.A.R. 81-3-1(b)(1)(C) apply for direct filings to KSC.

Agent Registration Requirements

Online Application
Each applicant for registration as an agent in Kansas shall complete Form U-4 in accordance with the form instructions and file with the Central Registration Depository (CRD). The registration fee for each agent is $30 as specified by K.A.R. 81-3-2(b).

Examination Requirements
An individual applying to be registered as an agent of a broker-dealer in Kansas shall provide the securities commissioner with proof of obtaining a passing score on the following examinations:
Series 63 – The Uniform Securities Agent State Law Examination; or the
Series 66 – Uniform Combined State Law Examination; and
One other examination approved by the administrator and required for registration with the Financial Industry Regulatory Authority (FINRA).

Examination Waivers for Lapsed Registrations
Our office no longer recognizes the FINRA Series 7 exam waiver as the primary justification for waiving that exam in Kansas. If an applicant has re-taken the Series 63 or Series 66 and received a Series 7 waiver by FINRA, our staff will review the applicant’s CRD/IARD record with regard to their professional education, industry experience, disclosure, and other related information to determine if a Series 7 waiver will be granted.

K.S.A. 17-12a412(e) allows for an order to be issued under the act that may waive, in whole or in part, an examination as to an individual if the administrator determines the examination is not necessary or appropriate in the public interest and for the protection of investors.

The staff review may result in a referral to the Securities Commissioner for consideration and decision. Additional information in support of the waiver may be provided by the individual or the firm, however, it is not required prior to review unless specifically requested by our office. No waivers will be granted absent an Order signed by the Commissioner.

Updates to Form U-4
All individual updates and amendments to Form U-4 shall be filed with the CRD in accordance with the instructions to Form U-4 and filed within 30 days of the event that requires the filing of a K.A.R. 81-3-1(c)(4) amendment.

Broker-Dealer Statutes & Regulations

 For a list of Broker-Dealer statutes and regulations, visit: 

Investment Advisers (IA)

IA Registration Requirements

Application Process
The initial application for investment adviser registration in Kansas shall be filed on Form ADV, along with the appropriate fee electronically with the IARD. The annual registration fee for an investment adviser firm is $50. The annual registration fee for each investment adviser representative is $30. For specific registration requirements of investment adviser firms, please review the following regulations: K.A.R. 81-14-1, K.A.R. 81-14-2, and K.A.R. 81-14-9.

Additional Requirements
Each application for initial registration as an investment adviser (whether a corporation, partnership, or sole proprietor) in Kansas requires the filing of the following items directly to the Office of the Kansas Securities Commissioner:

1. An unaudited balance sheet as required by K.A.R. 81-14-4(b)(6) as of the end of the most recent month preceding the filing of the registration application.
2. A copy of the advisory contract forms to be used for Kansas clients.
3. A copy of the adviser’s supervisory procedures.
4. The privacy policy as required by K.A.R. 81-14-1(b)(1)(B)(ii).
5. A copy of the qualified custodian’s new account form that includes the third-party trading authority.
6. Identification of one or more individual investment adviser representatives who will serve clients in Kansas pursuant to K.A.R. 81-14-1(a)(3). Each individual investment adviser representative must:
   • File Form U-4 and appropriate fees electronically with the Central Registration Depository (CRD).
   • Meet the investment adviser representative exam requirements.
7. A supplement or addendum to be attached to the investment adviser’s brochure for delivery to all clients or prospective clients in Kansas that shall disclose the presence or absence of professional liability insurance coverage for its investment advisory services. In the event any client or prospective client in Kansas requests proof of professional liability insurance coverage, the investment adviser shall within 30 days, provide a copy of the insurance agreement that is in effect.

IA Representative Registration Requirements

Examination Requirements
An individual applying to be registered as an investment adviser or investment adviser representative under the Act shall provide the securities commissioner with proof of obtaining a passing score on either of the following as required by K.A.R. 81-14-1(e)(1):

• Series 65 – The Uniform Investment Adviser Law Examination; or
• Series 7 – The General Securities Representative Examination and the Series 66 – The Uniform Combined State Law Examination

Waivers
The examination requirement shall not apply to an individual who currently holds one of the following professional designations:

• Certified Financial Planner (CFP) awarded by the Certified Financial Planner Board of Standards Inc.
• Chartered Financial Consultant (ChFC) awarded by the American College, Bryn Mawr, Pennsylvania
• Personal Financial Specialist (PFS) awarded by the American Institute of Certified Public Accountants
• Chartered Financial Analyst (CFA) awarded by the Institute of Chartered Financial Analysts
• Chartered Investment Counselor (CIC) awarded by the Investment Adviser Association

IA Notice Filing Requirements

Notice Filing
Federally registered investment advisers must file a notice with the Office of the Kansas Securities Commissioner if the company has a physical presence in this state or is not physically located in this state but has more than five clients that reside in Kansas. Each notice filing investment adviser shall file a Form ADV and appropriate fees electronically with the IARD as required by K.A.R. 81-14-7 and K.A.R. 81-14-2(c).

Investment Adviser Representatives
All investment adviser representatives located in Kansas and employed by a federal covered investment adviser that has a place of business in Kansas must register with the Office of the Kansas Securities Commissioner. Each individual investment adviser representative shall file Form U-4 and the fee in the amount of $30 electronically with the Central Registration Depository (CRD) and meet certain examination requirements.

IA Disclosure Check

For more information please visit Investment Adviser Public Disclosure

Kansas Registered IA Guidelines Booklet

Download the Kansas Registered IA Guidelines Booklet here.

Investment Adviser Renewal Letter

Download the Investment Adviser Renewal Letter here.

IA Statutes and Regulations

For a list of Investment Adviser statutes and regulations, visit:

Industry Links

For information related to industry please visit the following sites:

• U.S. Securities and Exchange Commission
• North American Securities Administrators Association
• Financial Industry Regulatory Authority