A broker-dealer maintains its principal office in State A and has registered branch offices in States B and C. The broker-dealer acquires a new building for its principal office within State A, changing its street address. Under the Uniform Securities Act, what is the broker-dealer required to do?
- ANotify the Administrator of State A and file an amendment to its registration in States B and C.
- BNotify the Administrator of State A only.
- CNo action is required as the change is within the same state.
- DFile an amended Form BD with the Administrator of State A and any other state where it is registered.
Show answer & explanationAnswer & explanation
Correct answer: D. File an amended Form BD with the Administrator of State A and any other state where it is registered.
A change in the principal office address is considered a material change to the broker-dealer's registration information. Under the Uniform Securities Act, registrants must promptly file an amendment to their registration (e.g., Form BD) with the Administrator of each state in which they are registered, reflecting such material changes.
Why the other options are wrong
- A. An amendment (e.g., Form BD) is the formal method, not just a general 'amendment to its registration'. The notification applies to all registered states.
- B. While State A must be notified, other states where the BD is registered also need to be informed of this material change.
- C. A change in principal office address is a material change requiring notification.
BD Material Change Amendment
Broker-dealers must promptly file an amendment to their registration (e.g., Form BD) with the Administrator of every state in which they are registered to report any material changes, such as a change in principal office address.
- Applies to 'material' changes.
- Must be filed promptly.
- Required in all states of registration.
- Typically done via an amended Form BD.
Memory trick: A 'Material Change' needs an 'Amended Form' sent to 'Every State'.