Welcome to Registration and Post-Registration Requirements, the unit that follows a broker-dealer from its first filing through everything the state can demand afterward, and finally to how a registration ends.
Exam Weight: Part of 12% (7 questions total for Chapter 3: Regulations of Broker-Dealers)
What You'll Learn
In this unit, you'll cover:
- Registration and Post-Registration Requirements: Form BD, the consent to service of process, fees, effectiveness, and annual renewal
- Post-Registration Requirements: Books and records, financial reports, prompt correcting amendments, and examination on demand
- Denial, Revocation, Suspension, Cancellation, and Withdrawal: The two-prong test the Administrator must meet, and why cancellation is housekeeping rather than punishment
Why This Matters
Registration is not a one-time event. The exam tests the filing itself, the obligations that continue for as long as the firm is registered, and the separate standards for ending a registration.
The distinction that earns the most points is discipline versus housekeeping. Denial, suspension, and revocation are punitive and require a public-interest finding plus a statutory ground. Cancellation is neither, and needs no such finding.
Let's start with Registration and Post-Registration Requirements.