Broker-Dealer Registration: Rapid Fire
Chapters in this video
- 0:00 Broker vs. dealer: the trader exception trap
- 1:54 The three-tier registration ladder and CRD
- 3:07 OSJ vs. branch office and the magic trigger
- 3:36 CMA vs. NMA: ownership changes and admission standards
- 4:44 Rapid-fire numbers: 14, 30, 45, 10, and $500,000
- 6:06 Bar vs. revocation and failure to supervise
- 6:51 Form BDW shutdown timeline and record retention
- 7:43 SIPC scope: failure yes, market losses no
- 7:59 Rapid-fire exam recap
What this video covers
- How the broker definition (agent, commission, for others) differs from the dealer definition (principal, markup, own account), and why the trader exception protects private investors
- What triggers mandatory Securities and Exchange Commission (SEC) registration: any use of interstate commerce to effect securities transactions
- How the three-tier registration system works (SEC, self-regulatory organization, states) and why one Form BD on the Central Registration Depository (CRD) handles all three
- The exam distinction between a branch office and an Office of Supervisory Jurisdiction (OSJ), and which activity (approving new accounts) creates the latter
- When a Continuing Membership Application (CMA) is required: 25% or more single-owner equity change, with prior approval needed
- The shutdown timeline after Form BDW: 60 days for SEC withdrawal effectiveness, 6 months to lose Securities Investor Protection Corporation (SIPC) status, and 2 years of retained self-regulatory organization (SRO) jurisdiction
- Why SIPC covers broker-dealer failure up to $500,000 per customer (including up to $250,000 cash) but never covers market losses or fraud
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