A broker-dealer's registration application in State XYZ is deemed complete. Under the Uniform Securities Act, when does the registration typically become effective?
- AImmediately upon filing the complete application.
- BAt noon of the 60th day after the filing of the application or the last amendment.
- CAt noon of the 30th day after the filing of the application or the last amendment.
- DWhen the Administrator issues an order of effectiveness.
Show answer & explanationAnswer & explanation
Correct answer: C. At noon of the 30th day after the filing of the application or the last amendment.
Under the Uniform Securities Act, registrations typically become effective automatically at noon on the 30th day after the filing of the application or the last amendment, unless the Administrator specifies an earlier effective date or institutes a stop order proceeding.
Why the other options are wrong
- A. Immediate effectiveness is rare; there's usually a review period.
- B. 60 days is generally too long; 30 days is the standard for automatic effectiveness.
- D. While the Administrator can accelerate effectiveness, automatic effectiveness is the default.
Registration Effective Date
Under the Uniform Securities Act, registration for broker-dealers, agents, investment advisers, and IARs typically becomes effective automatically at noon on the 30th day after the filing of the application or the last amendment, unless the Administrator acts sooner.
- Automatic effectiveness is the default.
- 30-day waiting period.
- Administrator can accelerate or delay effectiveness.
Memory trick: Thirty days at noon, your registration takes flight, unless the Administrator sheds a different light.