Registration and Post-Registration Requirements
Chapters in this video
- 0:00 Federal and state registration are parallel, not substitutes
- 1:44 Three filing hurdles: Form BD, consent, and fees
- 2:50 The irrevocable consent to service of process trap
- 4:24 Registration effective at noon on day 30, never approved
- 5:25 SEC net capital preemption and December 31 expiration
- 6:56 Rapid-fire exam recap
What this video covers
- Why federal registration with the Securities and Exchange Commission (SEC) never replaces state registration, and why parallel registration is mandatory in every state where a broker-dealer transacts business
- The three filing requirements for initial registration: Form BD, consent to service of process, and filing fees
- How partners, officers, and directors are automatically registered when the firm files Form BD, and the 30-day amendment window for successor firms
- Why the consent to service of process is irrevocable, survives termination of registration, and never requires renewal
- The exact timing that registration becomes effective at noon on the 30th day after a complete application, and why the word "approved" is always wrong on exam questions
- Why SEC net capital requirements preempt state requirements, and when a surety bond may be required instead
- The December 31 annual expiration date, renewal requirements, and the scope of post-registration recordkeeping obligations
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