Broker-dealer registration by the filing of Form BD
Most states allow broker-dealer registration by the filing of Form BD withCRD,424 and agent registration is typically accomplished by the filing of the Form U4with CRD.425 Although filing of a Form BD or U4 with CRD may satisfy a state's filing requirement, it does not necessarily result in automatic registration in all states.426 Some states may also require applicants to file additional documents, including financial statements and statement of prior sales activities.427 In addition, many states review a filing before registration may become effective
The Exchange Act includes two limited exemptions from the state registration requirements
The Exchange Act includes two limited exemptions from the state registration requirements for associated persons. Specifically, Exchange Act Section 15(h)(1)provides that no state law may prohibit an associated person from effecting a transactionon behalf of an existing customer when the customer is temporarily in another state orwhile the associated person's state application for state registration is pending, providedthat such associated person is not ineligible to register in that state, is registered withFINRA and at least one state, and is associated with a broker-dealer registered in thatstate.
Most states impose bonding, net capital, custody, financial statement reporting,and record keeping requirements
Most states impose bonding, net capital, custody, financial statement reporting,and record keeping requirements on broker-dealers.430 However, the Exchange Actprohibits states from establishing capital, custody, margin, financial responsibility,recordkeeping, bonding or financial operational reporting requirements for broker-dealersregistered under the Exchange Act that differ from or are in addition to those establishedunder the Exchange Act.431 Accordingly, the states' requirements conform to federallaw
Many states require broker-dealers and their agents to observe high standards of commercial honor
Similar to federal requirements, many states require broker-dealers and their agents to observe high standards of commercial honor and just and equitable principles oftrade in the conduct of business, and/or prohibit a variety of enumerated unethical orfraudulent practices including, among others: making unsuitable recommendations;churning a customer's account; selling (or purchasing) a security to (or from) a customerwith an excessively high mark-up (or mark-down); unauthorized trading; effecting anytransaction in, or inducing the purchase or sale of, any security by means of anymanipulative or deceptive device, practice, plan, program, design or contrivance.433 Statelaws also generally impose on a broker-dealer a duty to supervise its employees
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8921 W Sahara Ave.
Las Vegas, NV 89117
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