BIC Classes Bursting at the Seams

By Patricia Moylan Sullivan, Legal Education Officer

Since early January, 2001, the response to the Commission's broker-in-charge (BIC) course has been overwhelming, with the Commission receiving more registration requests than it can accommodate. Virtually all classes have been filled to capacity which, at most locations, means about 100 students.

Registrations for the course exploded following the January 5, 2001 letter from the Commission to all brokers-in-charge informing them of this new requirement. The winter issue of the Bulletin also featured a major article on the BIC course.

Total attendance for the first eight classes in November and December, 2000, was only 201. That compares with 920 at the first ten classes in 2001 (through March 19) - only two additional classes, but nearly four times the number of attendees. Classes are filling up from 3-6 weeks in advance!

Readers will recall that newly designated brokers-in-charge are required by rule to take the course within 90 days of being designated broker-in-charge. (NOTE: The submission to the Commission of a Broker-in-Charge Declaration form for any reason will result in the broker being classified as a newly designated broker-in-charge, thereby triggering the 90-day requirement.)

Brokers-in-charge who were designated prior to October 1, 2000 have five years (until September 30, 2005) to complete the BIC course, so long as they remain at the same office.

The Commission attempts to give preference in registration to newly designated brokers-in-charge who must complete the course within 90 days.

Due to high demand from experienced brokers-in-charge, however, a "90-day BIC" who delays in registering may find nearby courses full and have to attend a session further away in order to meet the course time requirement. Consequently, brokers-in-charge who must complete the course within 90 days are strongly urged to register as soon as they receive acknowledgment from the Commission of their broker-in-charge status.

The Commission is making every effort to accommodate the "90-day BICs" at the location of their choice. Please remember, however, that procrastination on your part until the last minute does not constitute an emergency on our part.

Brokers who have five years to take the course, (i.e., those who already were designated broker-in-charge at their current location prior to October 1, 2000) should consider registering for a class offered after July 1, 2001. This would help spread demand over a longer period of time and help alleviate the current registration crunch. It would also make it easier for newly designated "90-day BICs" to obtain the course at reasonably convenient locations.

Brokers and salespersons who want the course only for continuing education elective credit and do not anticipate becoming a broker-in-charge in the very near future should wait until the summer or fall. They are being admitted only on a space available basis through June.

The course is offered several times per month at different locations in North Carolina: monthly in Raleigh and Charlotte, bimonthly in Greensboro and Asheville, once every three to four months in Wilmington and Greenville, and twice each year in Atlantic Beach, Boone, Fayetteville, and Nags Head. One of several Commission staff members serves as principal instructor at each class session.

A course schedule for the remainder of 2001 and the registration form can be obtained either through the Commission's fax-on-demand line (919-850-2757, Document #370) or by downloading it from the Commission's web site at www.ncrec.state.nc.us, under either "Schedules" or "Online Registration."

The easiest and most effective way to register for the course is online at the Commission's website, where you may use a Visa or MasterCard to charge the $35.00 course fee. Online registration is immediate, allowing you to see which classes are full or still have available seats. After registering, you can print a notice confirming your enrollment in a particular class.

Mailed or faxed registration forms with checks or credit card numbers must be processed manually. Do not assume that you are registered for a class merely because you sent the registration form to the Commission. If you register by mail or fax, you are not registered for a class until you receive written confirmation from the Commission.

If you are mailing or faxing your registration request, then be sure to list at least three alternate dates and locations for taking the course. If necessary, we may hold a registration form to see if a seat becomes available at any of the alternate locations requested.

You will receive a written confirmation from the Commission once you are registered for a class. If no seats are available for any of the requested dates/locations, then the registration form and any check, if applicable, will be returned.

Comments from attendees have been positive. While the material presented is a review for most brokers-in-charge, the majority of attendees have found the class informative and welcomed the opportunity to learn more about the interpretation and application of the License Law and Commission rules.

The purpose of the course is to inform or remind brokers-in-charge of their obligations and responsibilities and of the Commission's interpretation of pertinent statutes and rules. Topics addressed include:

• Review of activities requiring a license and exceptions to the licensing requirement.
• Requisites for business entity licensing and the consequences of an expired firm license or absence of principal broker.
• Factors the Commission will consider in determining whether a broker-in-charge is fulfilling duties related to salesperson supervision.
• Various compensation issues.
• Factors to consider in determining whether a location is an office or branch office (thus requiring a broker-in-charge).
• Discussion of the responsibilities of a broker-in-charge.
• Components of an effective supervision program.
• An overview of trust account record-keeping requirements.
• "Red flags" which may alert brokers-in-charge to potential problems in their trust accounts and internal controls to prevent trust account problems.