NASAA Series 63Regulation of Broker-Dealers and AgentsMedium
Broker-Dealer DEF relocates its principal office to a new address within the state and opens two new branch offices. Under the post-registration provisions of the Uniform Securities Act, DEF is required to:
- ATake no action, since address changes do not affect an active registration
- BNotify only the SEC, since branch office information is a federal matter
- CWait until the annual renewal filing at year-end to disclose the changes
- DPromptly file an amendment updating its registration information with the Administrator
Show answer & explanationAnswer & explanation
Correct answer: D. Promptly file an amendment updating its registration information with the Administrator
A broker-dealer's registration must remain accurate and current. Under post-registration requirements, if information contained in the application (such as business address or branch office locations) becomes inaccurate or incomplete, the BD must promptly file an amendment with the Administrator.
Why the other options are wrong
- A. Incorrect — inaccurate registration information must be corrected promptly, not ignored.
- B. Incorrect — state Administrators, not just the SEC, require current, accurate registration information.
- C. Incorrect — waiting until year-end renewal would leave inaccurate information on file for months.
Duty to Amend Registration
A broker-dealer must promptly file amendments with the Administrator whenever information in its registration application becomes inaccurate or incomplete.
- Applies to address changes, branch offices, ownership, and financial status
- Prompt filing required, not deferred to renewal
- Failure to update can be grounds for administrative action
Memory trick: Update Promptly, Not Eventually