Broker-Dealer Registration and Regulatory Requirements

Vocabulary flashcards covering broker-dealer state and federal registration rules, Form BD disclosures, court order definitions, consent to service of process, and registration fee structures.

Form BD

The required registration form submitted by broker-dealers to disclose basic identifying information, business structure, controlling affiliates, products/services, and history to regulators.

Intrastate Broker-Dealer

A broker-dealer located in and operating solely within a single state, making it ineligible for SEC registration and required to register only with the state administrator.

Controlling Affiliate

Any executive employee (officer, director, or partner) or person/entity owning a significant amount of the business (e.g., a CEO or non-employee investor owning 25%) who exerts influence over the firm.

Injunction

A legal order issued by a court requiring either an action to occur or an action to cease.

Enjoinment

A legal order issued by a court requiring a person to cease an action.

SEC Investigation Remedies

Civil remedies sought by the SEC for federal securities law violations, including monetary penalties, disgorgement of ill-gotten gains, injunctions, and industry restrictions, but excluding imprisonment.

Form BD 10-Year Criminal Disclosure Requirement

The requirement on Form BD to disclose any charge, guilty plea, nolo contendere (no contest) plea, or conviction for any felony or securities-related misdemeanor within the past 10 years.

Consent to Service of Process

A document filed only with an initial registration application that irrevocably appoints the state administrator to accept civil complaints or legal requests on behalf of the registered person.

Initial Registration Expiration Date

December 31 (the end of the calendar year), regardless of when during the year the initial registration application was submitted.

Successor Firm Exception

A specific filing fee exemption where a firm buying and taking over another broker-dealer amends Form BD to notify regulators without paying an additional filing fee.