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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 26. INSURANCE, SECURITIES, AND BANKING |
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SubTilte 26-B. SECURITIES |
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Chapter 26-B1. BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES |
Section 26-B169. SENIOR-SPECIFIC CERTIFICATIONS, DESIGNATIONS, AND CREDENTIALS
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169.1The use, directly or indirectly, of a certification, professional designation, or credential by any person in connection with the offer, sale, or purchase of securities, or the providing of advice as to the value of or the advisability of investing in, purchasing, or selling securities that indicates or implies that the user has special certification or training in advising or servicing seniors or retirees, in such a way as to mislead, constitutes an unethical and dishonest practice pursuant to section 207(a)(9) of the Securities Act of 2000, effective October 26, 2000 (D.C. Law 13-203; D.C. Official Code § 31-5602.07(a)(9) (2001)).
169.2The uses prohibited by subsection 169.1 include, but are not limited to, the following:
(a)Use of a certification, professional designation, or credential by a person who has not actually earned the certification, professional designation, or credential or is otherwise ineligible to use the certification, professional designation, or credential;
(b)Use of a nonexistent or self-conferred certification, professional designation, or credential;
(c)Use of a certification, professional designation, or credential, that indicates or implies a level of occupational qualifications obtained through education, training, or experience that the person using the certification, professional designation, or credential does not have; or
(d)Use of a certification, professional designation, or credential obtained from an organization that:
(1)Is primarily engaged in the business of instruction in sales or marketing; or
(2)Does not have reasonable standards and procedures for assuring the competence of those persons to whom it provides certifications, designations, or credentials.
169.3There is a rebuttable presumption that a designating, certifying, or credentialing organization is not disqualified solely based on subsection 169.2(d) if:
(a) The certification, designation, or credential does not primarily apply to sales or marketing; and
(b)The organization has been accredited by:
(1) The American National Standards Institute;
(2) The National Commission for Certifying Agencies;
(3) An organization that is on the U.S. Department of Education’s list entitled “Accrediting Agencies Recognized for Title IV Purposes”; or
(4)Any other nationally-recognized accreditation organization designated by the Commissioner.
169.4In determining whether a combination of words or an acronym constitutes a certification, professional designation, or credential indicating or implying that a person has special certification or training in advising or servicing seniors or retirees, factors to be considered shall include:
(a) The use of words such as “senior” and “retirement” combined with words such as “certified,” “registered,” “chartered,” “adviser,” “specialist,” “consultant,” or “planner” in the title of the certification, professional designation, or credential; and
(b) The context or manner in which those words are used together.
169.5 For the purposes of this section, a certification, professional designation, or credential does not include a job title within a financial services organization that is licensed or registered by a state or federal regulatory agency, unless it is used in a manner that would confuse or mislead a reasonable consumer, if that job title:
(a) Indicates seniority or standing within the organization: or
(b) Specifies an individual area of specialization within the organization.
169.6Nothing in this rule shall limit the Commissioner’s authority to enforce the provisions of the Securities Act of 2000, D.C. Official Code § 31-5601.01 et seq. (“Securities Act of 2000”), and the implementing regulations of the Securities Act of 2000.