Series 65: 8.9.3 Registration Of Broker-Dealers

8.9.3  Registration of Broker-Dealers

Broker-dealers must almost always register at the federal level, in addition to meeting state registration requirements. The only way that registration is permitted only at the state level is if all transactions and all aspects of the transactions are conducted or expected to be conducted within state boundaries. Since the vast majority of broker-dealers will at some point use third-party services located outside of their state, virtually no broker-dealers choose to go this route.

To federally register, a broker-dealer must complete a two-step process. First, the BD must register with the SEC using the Central Depository Registration system to file a Form BD. This form requires important background information on the broker-dealer, including key personnel, contact information, and disclosures of any previous regulatory violations.