                                 CODE OF VIRGINIA

PROCEDURE FOR REGISTRATION (§ 13.1-505)

A. A broker-dealer, investment advisor, investment advisor representative or
agent may be registered after filing with the Commission, or any entity
designated by order or rule of the Commission, an application containing such
relevant information as the Commission may require. He shall be registered if
the Commission finds that:

   1. He is a person (and, in the case of a corporation or partnership, the
   natural persons who are the officers, directors or partners or who otherwise
   control such corporation or partnership are persons) of good character and
   reputation;

   2. He intends to maintain his business records in accordance with the rules of
   the Commission;

   3. His business knowledge and conduct and his financial responsibility are
   such that he is a suitable person to engage in the business;

   4. He has supplied all information required by the Commission;

   5. He is not subject to the revocation provisions of &#xA7; 13.1-506; and

   6. He has paid the necessary fee.

B. The Commission may require as a condition of registration or renewal of
registration the filing by a broker-dealer or investment advisor of a reasonable
surety or other bond conditioned as the Commission may require for the
protection of investors not in any case exceeding $25,000 in penalty amount as
evidence of financial responsibility except that no bond shall be required where
the net worth of the broker-dealer or investment advisor exceeds $25,000.

C. The Commission may require as a condition of registration the passing of a
written examination as evidence of knowledge of the securities or investment
advisory business.

D. All registrations and renewals thereof shall expire annually in accordance
with rules and regulations promulgated by the Commission.

E. Each application for a renewal of a registration shall be filed with the
Commission or any entity designated by order or rule of the Commission. Upon
application for a renewal of a registration, the Commission shall have
jurisdiction to determine, as of such time, the propriety of the renewal
registration.

F. Each application for a registration or renewal of a registration as a
broker-dealer or investment advisor shall be accompanied by a nonrefundable fee
of $200, payable to the Treasurer of Virginia or any entity designated by order
or rule of the Commission.

G. Each application for a registration or renewal of a registration as an agent
or investment advisor representative shall be accompanied by a nonrefundable fee
of not less than thirty and not more than fifty dollars, as established by order
or rule of the Commission, payable to the Treasurer of Virginia or any entity
designated by order or rule of the Commission.

H. For the purposes of registration as a broker-dealer or an investment advisor,
a partnership shall be treated as the same partnership so long as two or more
members of the partnership named in the application continue the business
without change of location, if the partnership, within one month after a change
in the partnership, files with the Commission a copy of a certificate filed in
compliance with &#xA7; 50-74.

I. The Commission shall either grant or deny each application for registration
within thirty days after it is filed. However, if additional time is needed to
obtain or verify information regarding the application, the Commission may
extend such period as much as ninety days by giving written notice to the
applicant. No more than three such extensions may be made on any one
application. An extension of the initial thirty-day period, not to exceed ninety
days, shall be granted upon written request of the applicant.

J. A renewal of registration shall be granted as a matter of course upon receipt
of the proper application and fee together with any surety bond that the
Commission may pursuant to subsection B require unless the registration was, or
the renewal would be, subject to revocation under &#xA7; 13.1-506.

HISTORY: 1956, c. 428; 1974, cc. 382, 479; 1980, c. 222; 1981, c. 244; 1984, c.
771; 1987, c. 678; 1990, c. 5; 1991, c. 281; 1992, c. 18; 1997, c. 279.