What is SEC Form BD
SEC Form BD is the form that needs to be completed and submitted to the U.S. Securities and Exchange Commission (SEC) in order to apply for registration as a broker-dealer in the United States. The form requires that the applying company disclose background information, including management policies that direct the firm, the names of executives and general partners, successor information, and any current legal proceedings or previous securities violations. The provisions that require all securities brokers be registered with the SEC are covered under Section 15 of the Securities Exchange Act of 1934.
Breaking Down SEC Form BD
SEC Form BD (the "Uniform Application for Broker-Dealer Registration") is used by broker-dealers to register with the SEC, Self-Regulatory Organizations (SRO), and jurisdictions. Broker-Dealers must file Form BD through the Central Registration Depository (CRD) system, operated by Financial Industry Regulatory Authority (FINRA). Form BD is one of six different Uniform Registration Forms that are used to file information electronically with FINRA’s Web CRD®. When the applicant is filing with the CRD for the first time, a full paper Form BD is required. In addition, some jurisdictions may require a separate paper filing of Form BD. The applicant should contact the appropriate jurisdiction(s) for specific filing requirements.
Web CRD® is the central licensing and registration system used by the U.S. securities industry and its regulators. The CRD contains the registration records of broker-dealer firms and their associated individuals including their qualification, employment, and disclosure histories. It also facilitates the processing of form filings, fingerprint submissions, qualification exams, and continuing-education sessions. Web CRD® is a secure system that only firms and regulators that have been granted access by FINRA can use.
[If you are interested in learning about the broker-dealer registration process in detail, you may want to access the SEC’s comprehensive and easy-to-use Guide to Broker-Dealer Registration.]