8 Broker Dealers

Question 1

BD

definition exceptions (3)

Answer 1

1. agents - ee of BD regesers as an agent
2. issuer - creater of sec
3. bank, savings, or trust

Question 2

BD Registration Exceptions

Answer 2

no physical office in state and clients are

1. issuer/creater of sec
2. other BD
3. institutional buyers

Question 3

Institutional Buyer

Answer 3

• bank, savings, or trust
• ins co
• inv co (mut fund)
• BD
• pension or profit - sharing trust
• fin institution

Question 4

Canadian BD limited registration

Answer 4

1. temp in US
2. had relationship w/ Can BD
3. transactions for self-directed tax -adv retirement for which they hold or contribute
4. client is institutional buyer

Question 5

BD registration requirements

Answer 5

meet state requirements and must register at fed level

unless only operating within state

Question 6

BD registration

Answer 6

file Form BD in Centeral Depository Registration

also must register with

SROs

Securities Investor Protection Cor (SIPC)

Question 7

BD registration - fed level

under 1934 who must review app and when approved by?

Answer 7

SEC

w/in 45 days or initiate proceeding for denial

Question 8

BD registration - state level

Answer 8

effective at noon on 30th day after app filed

unless more info needed or denying

Question 9

BD registration

state hearing based on applicant admission of judicial or admin order

how long do they have

Answer 9

90 days other wise cannot use data against applicant

Question 10

National Securities Markets Improvement Act (NSMIA)

Answer 10

state law cannot exceed SEC req on

capital, bonding, custody, rpt, recordkeeping

Question 11

Agents of BD

do not have to register w/ state if

Answer 11

1. no place of bus in state and only clients are institutional inv
2. reg in another state and clienthas had acct w/ BD for 30 days prior to trans. agent must have worked with client before or be applying for reg