Administrators can reserve the right to require applicants to take an examination, which either oral or written.
- 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.
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).
- 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:
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.
InvestingLearn what you need to know about the state securities administrator to pass the Series 63 exam.
Financial AdvisorBefore you take the series 63, you need to understand jurisdiction and how it affects broker-dealers.
Financial AdvisorThere are two primary types of financial advisors: investment advisors and investment brokers, who work for broker-dealers.
Financial AdvisorLaunching your own broker-dealer is a lot of work, but the potential payoff is great, both personally and financially.
InvestingFind out which independent broker-dealers generate the most revenue and why one major group may face major change in 2016-2017.
Financial AdvisorIndependent broker-dealers are a great choice for experienced, self-starter planners who have established practices.
Financial AdvisorThis week, the SEC levied fines against two RIAs for failing to disclose to clients that they had received forgivable loans from their broker-dealers.
Financial AdvisorFind out how brokers are paid for selling bonds and how the transaction costs are passed on to the investor through a markup or commission.
Financial AdvisorThe 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.
Financial AdvisorWhile 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.