and professional designations.
(1) 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 deemed to
be a dishonest and unethical practice in the securities business within the
meaning of SDCL 47-31B-412(d)(13). The prohibited use of such certifications or professional designation includes the following:
of a certification or professional designation by a person who has not actually
earned or is otherwise ineligible to use such certification or designation;
of nonexistent or self-conferred certification or professional designation;
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
of a certification or professional designation that was obtained from a
designating or certifying organization that:
primarily engaged in the business of instruction in sales and/or marketing;
not have reasonable standards or procedures for assuring the competency of its
designees or certificants;
not have reasonable standards or procedures for monitoring and disciplining its
designees or certificants for improper or unethical conduct; or
not have reasonable continuing education requirements for its designees or
certificants in order to maintain the designation or certificate.
(2) There is a rebuttable presumption that a
designating or certifying organization is not disqualified solely for purposes
of paragraph (1)(d) above when the organization has been accredited by:
American National Standards Institute;
National Commission for Certifying Agencies; or
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.
(3) 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 include:
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
manner in which those words are combined.
(4) For purposes of this rule, 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, if that job title:
seniority or standing within the organization; or
an individual's area of specialization within the organization.
For purposes of this subsection, financial services
regulatory agency includes an agency that regulates broker-dealers, investment
advisers, or investment companies as defined under the Investment Company Act
(5) Nothing in this rule limits the director's
authority to enforce existing provisions of law.
Source: 37 SDR 112, effective December
General Authority: SDCL 47-31B-605(a)(1), 47-31B-605(b), 47-31B-608(a).
Law Implemented: SDCL 47-31B-103, 47-31B-412(d)(13).