Statutes, codes, and regulations
District Of Columbia Administrative Code
Title 26 - INSURANCE, SECURITIES AND BANKINGSubtitle 26-B - SECURITIES
Chapter 26-B1 - BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES
Rule 26-B168 - SUPERVISION

D.C. Mun. Regs. tit. 26, r. 26-B168

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Current through Register 71, No. 45, November 7, 2024
Rule 26-B168 - SUPERVISION
168.1

Every investment adviser registered or required to be licensed under the Act shall exercise diligent supervision over the investment advisory activities of its investment adviser representatives and employees.

168.2

Each investment adviser representative and other office employees shall be subject to the supervision of a designated principal.

168.3

Written procedures, a copy of which shall be kept in each business office, shall be established, maintained, and enforced and shall set forth the standards and procedures adopted to comply with the requirement imposed by the Act and rules promulgated thereunder.

168.4

Each office location shall be periodically inspected by the designated supervisor to assure that the written procedures are complied with.

168.5

It shall be the responsibility of each investment adviser to ascertain that investment adviser representatives have been properly licensed prior to rendering investment advice.

168.6

It shall be the responsibility of each investment adviser and its supervisory personnel to ensure that all employees of such investment adviser are properly trained regarding the disclosure requirements and the civil and criminal liability provisions of the Act.

168.7

For the purposes of this section, no person shall be deemed to have failed reasonably to supervise any other person if:

(a) There have been established procedures, and a system for applying such procedures, which would reasonably be expected to prevent and detect, insofar as practicable, any such violation by such other persons; and
(b) Such person has reasonably discharged the duties and obligations incumbent upon such person by reason of such procedures and system without reasonable cause to believe that such procedures were not being complied with.

D.C. Mun. Regs. tit. 26, r. 26-B168

Final Rulemaking published at 40 DCR 6732 (September 24, 1993); as amended by Emergency Rulemaking published at 48 DCR 1987 (March 2, 2001) [EXPIRED]; as amended by Final Rulemaking published at 48 DCR 4106 (May 11, 2001)