Broker-Dealer: Testing
Administrators can reserve the right to require applicants to take an examination, which either oral or written.

Broker-Dealer: Update

  • If at any time a broker-dealer has any material change in vital information (i.e. address), it is to notify the Administrator immediately.

  • Records of a broker-dealer must be kept for a minimum of three years.

  • Financial reports must be filed with the Administrator annually, and in some cases, quarterly.

  • Usually, all advertising and promotional material must be filed with the Administrator, unless it is exempt on either a security or transaction basis.

Broker-Dealer: Renewal
The only requirement for renewal is for broker-dealers to pay annual fees, as long as there are no proceedings pending (including denial, suspension, revocation, or cancellation).

Broker-Dealer: Termination

  • Registration terminates annually on December 31 each year. However, if an Administrator deems it necessary, he or she can suspend or revoke registration at any time.

  • Non-disciplinary registration can be terminated at any time, regardless of whether there is/was an infraction of the Uniform Securities Act.

  • Withdrawal: At any time, a person may withdraw registration (if there are no violation-related proceedings in progress), by submitting such directly to the Administrator. Withdrawal is effective 30 days after the receipt of the withdrawal request.

  • Cancellation: Upon death, mental incompetence, or non-activity, an Administrator can cancel registration at any time. It is extremely important to note that cancellation is NOT the same as suspension, revocation or abjuration (denial).


Exam Tips and Tricks
A broker-dealer is required to file the following forms with the Administrator:

1. Application
2. Consent to service of process
In addition to these two items, a broker-dealer can be required to take an examination, pay a filing fee, maintain a minimum (liquid) net capital specified by the Administrator, and potentially post a surety bond as well! Note: The Administrator may not establish requirements that are in excess of, or more burdensome than, those already established by the SEC.



Agents: Definition

Related Articles
  1. Investing

    Series 63 Exam State Securities Administrator

    Learn what you need to know about the state securities administrator to pass the Series 63 exam.
  2. Financial Advisor

    Series 63 Exam Prep: The Broker-Dealer

    Before you take the series 63, you need to understand jurisdiction and how it affects broker-dealers.
  3. Financial Advisor

    What are the Different Types of Financial Advisors?

    There are two primary types of financial advisors: investment advisors and investment brokers, who work for broker-dealers.
  4. Financial Advisor

    Steps to Starting Up an Independent Broker Dealer

    Launching your own broker-dealer is a lot of work, but the potential payoff is great, both personally and financially.
  5. Financial Advisor

    Broker-Dealer Industry 101: The Landscape

    Independent broker-dealers are a great choice for experienced, self-starter planners who have established practices.
  6. Personal Finance

    How The SEC Places Rules On Penny Stocks

    Penny stocks don't have the best reputation on Wall Street, but does that mean you should avoid them altogether?
  7. Financial Advisor

    How Brokers Are Compensated for Selling Bonds

    Find out how brokers are paid for selling bonds and how the transaction costs are passed on to the investor through a markup or commission.
  8. Financial Advisor

    BD Loans Raise Fines, Conflict of Interest Worries

    This week, the SEC levied fines against two RIAs for failing to disclose to clients that they had received forgivable loans from their broker-dealers.
  9. Financial Advisor

    The Top 25 Broker-Dealer Firms in 2015

    The country's largest broker-dealer firms by annual revenue are clearly doing lots of things right, but they're also facing a massively shifting market.
  10. Financial Advisor

    How the New Fiduciary Rule Will Hit Broker-Dealers

    While the new rules are likely to impact all financial advisors, it is expected that those in the brokerage world will be hit the hardest. Here's why.
Trading Center