DEFINITION

"Broker-Dealer" is defined, in section 61-1-13(1)(c)(i) of the Utah Uniform Securities Act ("Act"), as "any person engaged in the business of effecting transactions in securities for the account of others or for his own account." The definition contains exclusions for certain persons which are found in the above-mentioned section of the Act.

INITIAL LICENSE

Any person which transacts business in Utah as a Broker-Dealer must be licensed with the Utah Division of Securities.

Division Rule R164-4-1 outlines the requirements for Broker-Dealer licensing. Following is a summary of this rule:

• A Broker-Dealer applicant must be a member of the Financial Industry Regulatory Authority, FINRA. If the Broker-Dealer applicant is not already a member of the FINRA, licensing forms and information can be obtained from:

Financial Industry Regulatory Authority
9513 Key West Avenue
P.O. Box 6011
Rockville, Maryland 20850
(301) 590-6500

• A Broker-Dealer applicant must file the following items with the Central Registration Depository:

1. SEC Form BD - Uniform Application for Broker-Dealer Registration (with original signatures). Available from FINRA or SEC.
2. Form U-4 - Uniform Application for Securities Registration or Transfer for each principal officer, agent, or employee who directly supervises, or will directly supervise, any Utah licensed agent (with original signatures).  (instructions)
3. Licensing Fee of $200.00 for the firm and $60.00 for each agent.
4. Exams - Proof that the principal officer and each agent have passed the Series 63, Uniform Securities Agent State Law Examination or the Series 66, Uniform Combined State Law Examination, and any other exams required by the SEC or FINRA.

• In addition, the applicant must file the following with the Utah Division of Securities:

1. Applicants that are not members of SIPC, who will have custody or discretionary authority over client funds or securities, may be required to post a bond.

• A certificate of license will not be issued. Proof of status is available from the CRD.
• All Broker-Dealer licenses expire on December 31 of each year.
• Please note, the Utah Division of Securities does not require the annual filing of the FOCUS report.  It may however, request a copy of the FOCUS report under certain circumstances.

LICENSE RENEWAL

All Broker-Dealer licenses expire on December 31 of each year. To renew the license, the $200.00 fee for the firm and the $60.00 fee for each agent must be submitted to the CRD prior to December 31. The CRD processing center closes operations one to two weeks prior to year end in order to give the staff time to take care of the renewal process. It is recommended that the renewal fees be sent no later than December 1 of each year.

LICENSE WITHDRAWAL

To withdraw a license or application, the Broker-Dealer must file with the CRD a FINRA Form BDW, Uniform Request for Withdrawal. This form is available fromFINRA. A withdrawal is effective 30 days following the receipt of SEC Form BDW unless the Division notifies the applicant otherwise.