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Broker Dealer


Frequently Asked Questions

Is there a de minimis exemption to broker-dealer registration?

     Yes, if a broker-dealer:

  • Does not have a place of business in Indiana;
  • Serves three or fewer customers in Indiana within the previous 12 months; and
  • The broker-dealer is registered in the state where it has its principal place of business, then it is exempt from registration in Indiana.

What do I file on the CRD to become registered?

  • Form BD
  • U4 for agents

What do I file with securities division of the secretary of state's office to become registered?

  • Broker dealer application;
  • Audited financials - if this is a new broker dealer, the minimum requirement is an unaudited financial report prepared within the previous 60 days; and
  • FOCUS I or II.

What is the test requirement to be a broker dealer agent?

  • S7 and S63;
  • Depending on the line(s) of business, any of the following may substitute for the S7 — S6, S17, S22, S42, S52, S62, S72 or S82; and
  • The S66 may substitute for the S63

What is the test requirement to be a broker dealer principal?

  • S24;
  • S40 or S00 is acceptable if passed prior to effectiveness of S24 requirement; and
  • Depending on the line(s) of business, either the S26 or S39 may substitute for the S24.

What is the "Gap Rule?"

  • An agent must not have a gap of more than two years of non-registration within the jurisdiction; and
  • If the gap is more than two years, the exams must be repeated.

How does an applicant receive an exam waiver?

  • If the prospective agent wishes to have its test requirement waived, a written waiver request must be sent to the commissioner.
  • Criteria under which a waiver may be granted is in 710 IAC 1-15-2

May an agent be registered with more than one firm?

  • Dual registration occurs only when the agent is pending in Indiana with one firm and is approved in Indiana with another firm.
  • When an agent moves from one company to another, we cannot approve registration with the new company until the old company submits the U-5 for the prospective agent through the NASD.
  • An agent wishing to be employed with two different companies must submit to the securities division letters from both companies showing consent of the dual registration.

What is the requirement for Offices of Supervisory Jurisdiction and branch offices?

  • Each branch must be supervised by an Office of Supervisory Jurisdiction either inside or outside of Indiana.

What is the audited financial reporting requirement?

  • Due on request by the securities division. See rule removing the requirement for annual reports: LSA Document #06-135

What entities can credit an organization offering a senior specific designation allowing that designation to be used by financial professionals under 710 IAC 4-10-2?