What Is an SEC Form BDW?
The Securities and Exchange Commission (SEC) Form DBW is a document which must be completed by all securities broker-dealers who wish to terminate their status as a registered broker. The Form's title is SEC Form Uniform Request for Broker-Dealer Withdrawal.
More simply put, this Form lets broker-dealers close up shop or stop acting in the capacity of a broker-dealer. Financial Industry Regulatory Authority (FINRA) mandates the use of Form DBW. Broker-dealers–who buy and sell securities on behalf of their investing customers–may also use the document to make a partial withdrawal from trading activity. A partial removal terminates a broker's registration within specific jurisdictions and self-regulatory organizations (SRO). However, a partial withdrawal does not end the firm's filing requirements with the SEC and with the remaining SROs and jurisdictions.
The purpose of the Form is to help the SEC determine if it is in the public's best interest for a broker-dealer to withdraw their registration.
Specific Provisions of SEC Form BDW
Section 15 of the Securities Exchange Act of 1934 covers the provisions which govern all securities brokers registered through the Securities and Exchange Commission. The purpose of the Form is to help the SEC determine if it is in the public's best interest for a broker-dealer to withdraw their registration. The SEC and the National Association of Securities Dealers (NASD) keep all information provided through the filing of Forms BDW on record. The information contained in the filings is available to the public.
Broker-Dealers may submit Form BDW electronically with the Central Registration Depository (CRD), which is also overseen by FINRA. Some jurisdictions may also require a separate filing of a paper copy of the Form and have additional filing requirements. Consequently, the applicant should contact the appropriate authorities for specific filing requirements, to make sure they are fully compliant.
Real World Example
According to FINRA, when broker-dealers terminate their firm’s registration using the Uniform Request for Broker-Dealer Withdrawal, they should bear in mind the following points:
- Before filing Form BDW, broker-dealers must amend Form BD to update any inaccurate or incomplete information.
- Broker-dealers may file an appropriate amendment Form online through Web CRD.
- Be aware that some jurisdictions may have additional filing requirements for withdrawing a registration.
Further, firms should make sure they contact the appropriate jurisdictions for their specific filing requirements. A directory of states and jurisdictions is available on the North American Securities Administrators Association website.