The Oregon Department of Consumer and Business Services (“DCBS”), Finance and Securities Regulation recently gave notice of a proposed rulemaking to amend the rule regarding the use of special designations, professional certifications, or titles by securities professionals. Investment advisors, stock brokers, investment advisor representatives, registered representatives, and others in the securities industry sometimes use certifications, designations, and titles to represent that the person has particular expertise. Examples includes an advisor who claims to have expertise in financial issues that relate to seniors or retirees.
The Oregon Administrative Rule currently in effect, OAR 441-135-0020 (Use of Certification or Professional Designation) prohibits a person from using a certification or designation “that falsely indicates or implies that the person has special certification or training, 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, directly or indirectly, or through a publication or writing, or by issuing or disseminating analyses or reports relating to securities.” OAR 441-135-0020 then goes on to list and describe certain prohibited uses of a certification or designation, such as use of a certification or designation that a person has not actually earned.
The proposed changes would add a new subsection, OAR 441-135-0020(4)(c), that DCBS explains “would allow the use of designations or certifications that the director recognizes for securities licensing examination waiver purposes, under OAR 441-175-0120(6)(b), when used by a person currently holding such a certification or designation.”