CHAPTER 332
HB 1274 – FINAL VERSION
05/01/08 1469s
04Jun2008… 2137eba
2008 SESSION
08/09
HOUSE BILL 1274
AN ACT relative to certain securities professional designations and securities administration.
SPONSORS: Rep. Marshall Quandt, Rock 13; Rep. Matthew Quandt, Rock 13; Rep. Weyler, Rock 8
This bill amends the securities laws to:
I. Prohibit certain activities related to certification or professional designation.
II. Allow the secretary of state to bar a person from licensure.
III. Allow the secretary of state to send letters of censure, caution, warning, or admonition.
IV. Authorize the secretary of state to recover attorney’s fees pursuant to investigators and related proceedings.
This bill is a request of the secretary of state.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
05/01/08 1469s
04Jun2008… 2137eba
08-2479
08/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eight
AN ACT relative to certain securities professional designations and securities administration.
Be it Enacted by the Senate and House of Representatives in General Court convened:
332:1 New Paragraph; Securities; Prohibited Activities. Amend RSA 421-B:6 by inserting after paragraph VII-a the following new paragraph:
VII-b.(a) The use of a senior-specific certification or designation by any person in connection with the offer, sale, or purchase of securities, or the provision of advice as to the value of, or the advisability of investing in, purchasing, or selling securities, either directly or indirectly or through publications or writings, or by issuing or promulgating analyses or reports relating to securities, that indicates or implies that the user has special certification or training in advising or servicing senior citizens or retirees, in such a way as to mislead any person shall be a dishonest and unethical practice in the securities business within the meaning of RSA 421-B:10, I(b)(7). The prohibited use of such certifications or professional designation includes, but is not limited to, the following:
(1) Use of a certification or professional designation by a person who has not actually earned, or is otherwise ineligible to use such certification or designation;
(2) Use of a nonexistent or self-conferred certification or professional designation;
(3) Use of a certification or professional designation that indicates or implies a level of occupational qualifications obtained through education, training, or experience that the person using the certification or professional designation does not have; and
(4) Use of a certification or professional designation that was obtained from a designating or certifying organization that:
(A) Is primarily engaged in the business of instruction in sales or marketing;
(B) Does not have reasonable standards or procedures for assuring the competency of its designees or certificants;
(C) Does not have reasonable standards or procedures for monitoring and disciplining its designees or certificants for improper or unethical conduct; or
(D) Does not have reasonable continuing education requirements for its designees or certificants in order to maintain the designation or certificate.
(b) There is a rebuttable presumption that a designating or certifying organization is not disqualified solely for purposes of RSA 421-B:6, VII-b(a)(4) when the organization has been accredited by:
(1) The American National Standards Institute; or
(2) The National Commission for Certifying Agencies; or
(3) An organization that is on the United States Department of Education’s list entitled “Accrediting Agencies Recognized for Title IV Purposes” and the designation or credential issued therefrom does not primarily apply to sales and/or marketing.
(c) In determining whether a combination of words or an acronym standing for a combination of words constitutes a certification or professional designation indicating or implying that a person has special certification or training in advising or servicing senior citizens or retirees, factors to be considered shall include:
(1) Use of one or more words such as “senior,” “retirement,” “elder,” or like words, combined with one or more words such as “certified,” “registered,” “chartered,” “adviser,” “specialist,” “consultant,” “planner,” or like words, in the name of the certification or professional designation; and
(2) The manner in which those words are combined.
(d) For purposes of this subparagraph; “financial services regulatory agency” includes, but is not limited to, an agency that regulates broker-dealers, investment advisers, or investment companies as defined under the Investment Company Act of 1940. For the purposes of this paragraph, a certification or professional designation does not include a job title within an organization that is licensed or registered by a state or federal financial services regulatory agency, when that job title:
(1) Indicates seniority or standing within the organization; or
(2) Specifies an individual’s area of specialization within the organization.
(e) Nothing in this paragraph shall limit the secretary of state’s authority to enforce existing provisions of law.
332:2 Licensure; Denial; Suspension; Revocation. Amend the introductory paragraph of RSA 421-B:10, I to read as follows:
I. The secretary of state may by order deny, suspend, or revoke any license or application, or bar any person from licensure if he or she finds:
332:3 New Subparagraph; Letters of Censure. Amend RSA 421-B:21, I-a by inserting after subparagraph (g) the following new subparagraph:
(h) To issue letters of censure, caution, warning, or admonition pursuant to audits or inspections under RSA 421-B:9, investigations under RSA 421-B:22, or hearings under RSA 421-B:26-a.
332:4 Investigations and Subpoenas. Amend RSA 421-B:22, IV to read as follows:
IV. In any investigation to determine whether any person has violated or is about to violate this title or any rule or order under this title, upon the secretary of state's prevailing at hearing, or the person charged with the violation being found in default, or pursuant to a consent order issued by the secretary of state, the secretary of state shall be entitled to recover the costs of the investigation, and any related proceedings, including reasonable attorney’s fees, in addition to any other penalty provided for under this chapter.
332:5 Effective Date. This act shall take effect January 1, 2009.
Approved: July 7, 2008
Effective Date: January 1, 2009