Series 66 CH 1-3

What does the intial application for broker dealers,agents, ia, iar include

applicant’s name and any alias, adress for last five years, applicant’s financial condition an dhistory, employment history for the last 10 years, type of business to be conducted, other business activities, any charge, details regarding unstisfied judments, any settlements of 15000 or more related to customer complaints, whether a bonding company has ever denied paid out, qualifcation and buisiness history of any partner in a controlling position

how long to file an amendment to admin if info inaccurate or outdated

30 days

What is a Consent to Service of Process

is a document that irrevocably appoints the admin as a registered person attorney for the service of legal papers. so that customers may file non criminal complaints to admin.

only filed once and it does not need to be renewed

what is the substituted consent to service of process

may sue the seller in the purchaser’s state and then bring an action on the judgment in the seller’s state

Filing Fee

paid at the time of initial registration and annually at renewal

are administrators allowed to require applicants to take exams?

yes they may require exams but applicants still need to register

Surety Bond

insurance issued by a bonding company that agrees to pay the sum of money awarded by a court up to a certain amount (used when registrant violates USA)

may need if securities professionals maintain custody over clients funds

or if broker deal does not meet the minimum financial req

When does a person registration become effective?

at noon on the 30th day after the filing of the application (unless admin approves early)

When does registration expire for broker dealers and agents

annually on december 31st

what is the renewal process entail

updating application and paying a new fee

what form is needed for broker deal to register and with who is it filed

Form BD to the Central Registration Depository (CRD)

what form is needed for Agent to register and with who is it filed

Form U4 to the CRD

what form is needed for investment Adviser to register and with who is it filed

Form ADV (parts 1 and 2) to the Investment Adviser Registration Depository (IARD)

what form is needed for Investment Adviser Representatives to register and with who is it filed

Form U4 IARD via CRD

CRD

Central registration depository database for broker dealers and their agents

IARD

Investment Adviser Registration Depository database for IAs and IARs

Net Capital reqs for broker dealers

admin may require minimum amount however state can not set level higher than SEC (federal)

What must broker dealers do with advertising and sales literatur

file with the admin unless materials are relating to exempt securities or exempt transactions

how long do record need to be saved for

3 years with the first two year having all info easily accessible

Order Memorandum or order tickets are and must include

record regarding transactions in their customer accounts

account number, date of entry, date of execution

instrusctions

terms and conditions

unsolicited or solicited

discretionary or not

broker deal or bank

can financial report be requried to be filed with the admin

yes quarterly annually or as frequent as determined by rule or order

who is excluded from the broker dealer definition and not required to register as a BD with state

agents, issuers, banks, savings and loan companies, savings institutions, and trust companies

a person that has no office in the state and only transacts business with issuers

a person that has no office and is registered where the person maintains its place of business with retail clients who are not residents of the state

agent of issuers

employees of issuers that effect transactions and will have to register

Exemption of agents of issuers that would not have to register as such

effects transactions in securities that are exempt

• us goverment and muni securities

• bank, trust company, and savings institution securities

• commercial paper less nine month 50000 high rating

• investment contracts for employees

or transaction that are exempt

• private placements

• sales to qualified purchasers

• between issuer and underwriter

• trust company or savings

• individual seling stock of his compnay to employees with no comp in transaction

agents of broker dealers

if they sell securties they are requried to register with the state as agent

what happens if agent is terminated

must file from u5 if not rehired by another firm in two years registration will lapse

what are the situations in which agents may conduct business with an existing client without being registered in the state

if application is pending agent may engage in transaction for up to 60 days with existing client who has moved to that state as long as the following reqs are met

1. agent must be eligible to register in the state

2. agents broker dealer must already be registered in the state

3. agent must be registered with a national securities association (FInRa)

4. agent must be registered in a least one other state

May also if client is temporarily visting the state for vaction or for school

Finders

bring together issuers and investors for exempt transaction particularly private placements

are finder always required to register

NO, if they don’t recieve transaction based compensation they do not have to register

example: if issuer paid for a list of names rather than commision on sale finder is not an agent

when must agent update U4

when any material event happens

• registered in another jurisdiction

• change in legal name

• chage in residential or bus. address

• customer complaint

• broken law

• terminated

• bankrupt

• outside business activies

Managers as agents

all original partners, officers, and directors of BD who are involved in effecting securities are automatically registered as agents when BD register with the state

If broker dealers and agents are pproperly registered in canada and have no place of business in US what happens

Exempt from certain provisions of uniform securities Act

Canadian broker dealer exemptions

may effect transactions of person in canada who is temporarily in US state as long as client was found before enter US

or if trades are effected in a canadian self directed tax advaantaged retirement account for which the person is the holder or contributor