Oregon Department of Consumer and Business Services, Finance and Securities Regulation

Rule Rule 441-175-0130
Licensing of Salespersons to FINRA Broker-Dealers

(1) For purposes of ORS 59.175 (Procedures for notice filing and licensing), all FINRA salespersons will be eligible for automatic licensing as provided in this rule if:
(a) The salesperson is licensed by the FINRA to a broker-dealer who is a member in good standing of the FINRA;
(b) The salesperson is employed by a broker-dealer who is licensed in Oregon under ORS 59.175 (Procedures for notice filing and licensing);
(c) An application to license the salesperson has been submitted to the CRD by the employer as provided in this rule;
(d) The salesperson has filed with the director an undertaking as required in section (8) of this rule, if applicable; and
(e) The salesperson is not disqualified under OAR 441-175-0140 (Disqualification from Automatic Licensing).
(2) The employing broker-dealer must submit an application to license a salesperson in Oregon to the CRD including:
(a) A completed Form U-4;
(b) A salesperson licensing fee for each salesperson as set in OAR 441-175-0002 (Fees for Licensing or Notice Filing of Firms and Individuals); and
(c) Official notice of a passing score of the appropriate examination as required for licensing under section (4) of this rule.
(3) The following salespersons are exempt from the examination requirements of section (4) of this rule:
(a) Salespersons licensed in Oregon at any time during the two years immediately prior to filing an application. The application must be for the same type of license; or
(b) Salespersons licensed in any jurisdiction at any time during the two years immediately prior to filing an application for licensing in Oregon. This exemption is limited to the extent a person has previously taken and passed the examinations required by section (4) of this rule.
(c) Salespersons that have received a waiver from FINRA under Rule 9600, as in effect on the effective date of this rule.
(4) (a) A salesperson who is not exempt from the examination requirements under section (3) of this rule is required to pass the S-63 examination. In addition to the S-63 examination, a salesperson is required to pass the specific examination which corresponds to the salesperson’s authorized sales activity; or
(b) A salesperson who is not exempt from the examination requirements under section (3) of this rule is required to pass the S-66 examination and Series 7 examination.
(5) Limited licensed salespersons may only effect transactions in securities for which their license is issued.
(6) Alternate equivalent examinations will be considered upon a written request to the director, stating the examination to be replaced, the type of examination and the material covered in the alternate examination. Examinations which have been replaced by a new examination will be accepted as an alternate equivalent examination without written request.
(7) Waiver of the examination requirement will be considered upon a written request to the director. Waivers will be limited to applications showing a minimum of three continuous years of securities-related activity immediately prior to the application and a pre-existing business relationship with a person who is now in this state.
(8)(a) A person may be licensed simultaneously in Oregon as a salesperson with more than one broker-dealer, mortgage banker, mortgage broker, or investment adviser if all employers enter into an undertaking on a form provided by the director. The undertaking shall contain the following provisions:
(A) The effective date of the salesperson’s employment with the respective employers;
(B) Consent by each employer to the employment of the salesperson by all other employers;
(C) An agreement by each employer to assume joint and several liability with all other employers for any act or omission of the salesperson during the period of employment which violates the Oregon Securities Law. This agreement will continue until written notice is given to the director of the termination of the employment relationship; and
(D) An agreement that each employer will license the salesperson with the director and pay the applicable fees.
(b) No undertaking is required where the employer, a single entity, is licensed in Oregon as both a broker-dealer and an investment adviser; and
(c) Any changes in employment by a salesperson which would result in requiring an undertaking or changing the existing undertaking must be immediately filed on a new undertaking form with the director.
(9) Unless disqualified for automatic licensing in Oregon under OAR 441-175-0140 (Disqualification from Automatic Licensing), the salesperson will be automatically licensed in Oregon upon meeting the requirements as stated in this rule.
(10) If automatic licensing occurs, the effective date of licensing in Oregon will be the Oregon approved date as shown on the CRD.
(11) If the salesperson is disqualified from automatic licensing under OAR 441-175-0140 (Disqualification from Automatic Licensing), the director will either approve the application, condition or restrict the license under 441-225-0030 (License Conditions or Restrictions), or deny it under ORS 59.205 (Grounds for denying, suspending, revoking or imposing condition or restriction on license) to 59.225 (Cancellation of license or application). If the director denies the application, the salesperson will be notified of the facts forming the basis for the denial, the statutory grounds for the denial and the person’s right to a hearing under ORS chapter 183.
(12) A salesperson licensed under this rule is licensed in Oregon only for the same classification for which the salesperson is licensed with FINRA.
(13) If the application, the undertaking, any supporting material or any representations made to the director are inaccurate or incomplete in any material respect, the license shall be void.
(14) The license for an FINRA salesperson expires on December 31 of each year. The FINRA broker-dealer shall renew the salesperson’s license as provided in ORS 59.185 (Expiration of license) and OAR 441-175-0160 (Renewal of FINRA Broker-Dealer and Salesperson Licenses).
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Last accessed
Jun. 8, 2021

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