Regulatory Updates

Posted October 31, 2024, FINRA communicated information about renewal fees of broker-dealer (BD) and investment adviser (IA) firms - **Preliminary Statements**: Starting November 11, 2024, FINRA will post preliminary statements for BD and IA firms in [E-Bill](https://ebill.finra.org/ebill-web). These statements show any renewal fees for BD and IA registrations through the CRD and IARD programs. - **Final Statement**: A final statement will be posted on January 2, 2025, to confirm and reconcile the actual renewal fees for BD and IA firms, branches, and individuals. For more information, please use the following link - [FINRA Notice](https://www.finra.org/rules-guidance/notices/24-14?utm_source=MM&utm_medium=email&utm_campaign=O%5FWeekly%5FUpdate%5F110624%5FFINAL)

Posted November 5, 2024, Ohio is seeking public comment on proposed amendments around procedures and requirements for the licensing and appointment of insurance agents in Ohio. These amendments also identify lines of authority eligibility for limited lines licenses. Comments are due on or before November 20, 2024. Please see the attachment for more information. To comment on one of these rules please visit  or send an email to [ecomment@insurance.ohio.gov](mailto:ecomment@insurance.ohio.gov). For questions regarding these rules please call 614-644-2640.

Posted November 4, 2024, The North American Securities Administrators Association (NASAA) is seeking public comment on proposed amendments to the NASAA model rule on Dishonest or Unethical Business Practices Of Broker-Dealers And Agents. Comments are due on or before December 19, 2024. Please see the attachment for the proposed amendments.  NASAA is only accepting comments by email. Please email your comments to the NASAA Comments inbox (nasaacomments@nasaa.org), cc: Amy Kopleton (KopletonA@dca.njoag.gov), and Jim Nix ([jnix@ilsos.gov](mailto:jnix@ilsos.gov)).

Effective January 1, 2025, Idaho has new expectations for reporting requirements of Pharmacy Benefit Managers (PBMs), including health insurers who perform the activities of a PBM.  - PBMs are required to report to the Idaho Department of Insurance on January 1, 2025, and then annually. - The difference in the amount paid to each pharmacy and the amount charged to health plans, aggregated by each pharmacy. - Transparently disclose why a drug was moved to a tier that results in higher costs to a consumer or lower reimbursement to a pharmacy. - A PBM that owns, controls, or is affiliated with a pharmacy must report differences paid between affiliated and nonaffiliated pharmacies. - PBMs are required to submit quarterly reports to the Department of Insurance on appeals and denial outcomes including reasons for each denial, for each specific drug for which an appeal was submitted. All required reporting should be sent via email to pbm@doi.idaho.gov. Failure to submit timely reporting may result in administrative action. Please see the attachment for more information.

The Colorado Division of Securities issued quarterly newsletter. Highlights are below: - **Colorado Division is Approved to Offer IAR CE** - The Division is offering in person on November 13 from 10 a.m. to 12 p.m.  This session qualifies for 2 CE credits. - **Notice of Return to On-Site Field Examinations** - The Colorado Division of Securities is resuming on-site examinations of investment adviser firms. To prepare for these examinations, firms are encouraged to utilize the [Division’s resources](https://securities.colorado.gov/division-of-securities-examinations?utm_medium=email&utm_source=govdelivery). - **Notice of Fee Changes** - Starting November 1, 2024, licensing fees will be reduced: individual licensees will pay $14 annually, while firms will pay $65. Please see the following link for more information - [Quarterly Industry Newsletter](https://securities.colorado.gov/press-release/quarterly-industry-newsletter-division-offering-iar-ce-courses)

November 1, 2024, Maine will be “cleaning up” individual nonresident producer license records. Under Maine law, a producer must have a valid home state license to hold a Maine nonresident producer license. During the clean-up, these noncompliant licenses will be canceled. This action will occur over the next several weeks and should be completed by the end of 2024. Please see the attachment for more information. Update: November 15, 2024, 7,700 licenses were cancelled effective today Update: November 22, 2024, 15,300 licenses were cancelled effective today Update: December 6, 2024, 9,600 licenses were cancelled effective today

Effective November 1, 2024, State Based Systems (SBS) is updating multiple lines of authority effective dates for the below states. - North Dakota - Nebraska - New Hampshire - Tennessee

Effective January 1, 2025, Georgia will be updating appointment fees. All new appointments processed in 2024 will be charged the current fee. The new appointment fee will be charged for appointments processed on or after January 1, 2025. Please see the attachment for more information.  Current Fee - $16 New Fee - $20 Update: On December 17, 2024, Georgia will continue to require the Appointer’s Tax number to be submitted for appointments and terminations for electronic applications.

Posted October 30, 2024, Kansas announces that the company appointment renewal invoices will be available for payment from January 2, 2025, to March 1, 2025. The termination deadline is December 26, 2024.  Please see the attachment for cost information and the license classes allowed for appointment renewals.

Effective April 28, 2025, FINRA is adopting amendments that clarify and define rules surrounding registered persons from borrowing money from or lending money to their customers. - Clarifying that the rule’s general prohibition and requirements apply to borrowing or lending arrangements that pre-exist a new broker-customer relationship - Defining “customer” to include any customer that has, or in the previous six months had, a securities account assigned to the registered person at any member, which extends the rule’s limitations to borrowing or lending arrangements entered into within six months after a broker-customer relationship terminates - Extending the rule’s general prohibition and requirements to borrowing or lending arrangements that involve conflicts similar to the ones presented by arrangements directly between registered persons and their customers. More information can be found via the following link