Post-Registration Requirements

What this video covers

• Why a broker-dealer (BD) that satisfies federal Securities and Exchange Commission (SEC) recordkeeping standards automatically satisfies state requirements, and the trap that states cannot exceed federal standards
• What records the Administrator can demand by rule or order: client accounts, correspondence, memoranda, papers, books, and financial reports
• When a correcting amendment must be filed, and why "promptly" is the only correct answer (not 15 days, not 30 days)
• What constitutes a material change triggering the correcting amendment obligation: change of address, change in ownership, new disciplinary history, change in financial condition
• What visitorial power means: the Administrator can examine BD records at any time without a subpoena, prior notice, or court order
• Where the Administrator may conduct examinations: within or without the state, including out-of-state servers or records locations
• The three escalating consequences of willful refusal to submit to a reasonable examination: injunction, revocation of registration, then criminal prosecution