NASAA Series 63Regulation of Broker-Dealers and AgentsMedium
A broker-dealer maintains its principal office in State A and has registered branch offices in States B and C. If the broker-dealer relocates its principal office from one address in State A to a new address within State A, what action is required under the Uniform Securities Act?
- ANo action is required, as the relocation is within the same state.
- BThe broker-dealer must file amendments with the Administrators in States B and C only.
- CThe broker-dealer must re-register entirely in State A due to the change in principal office.
- DThe broker-dealer must file an amendment to its Form BD with the Administrator in State A.
Show answer & explanationAnswer & explanation
Correct answer: D. The broker-dealer must file an amendment to its Form BD with the Administrator in State A.
A change in the principal office address is a material change to a broker-dealer's registration information. Under the Uniform Securities Act, broker-dealers are required to promptly file an amendment to their Form BD with the Administrator whenever there is a material change to the information on file.
Why the other options are wrong
- A. A change of address, even within the same state, is a material change requiring notification.
- B. Amendments are only required in states where the specific changed information (principal office address) directly impacts their registration records.
- C. Re-registration is typically only required if the entity's legal structure or ownership fundamentally changes, not for a simple address change.
BD Material Change Notification
Broker-dealers must promptly amend their registration forms (e.g., Form BD) with the Administrator whenever there is a material change to the information previously provided.
- Applies to all material changes (e.g., address, ownership, disciplinary actions).
- Amendment must be filed promptly.
- Ensures the Administrator has accurate and up-to-date information.
- Failure to amend can lead to disciplinary action.
Memory trick: Form BD: Keep it current, don't be late, or face the Administrator's gate.