Broker-Dealers

"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 FINRA :

    FINRA’s Gateway Business Application Support (GBAS) group at (800) 321-6273

  • A Broker-Dealer applicant must file the following items with the CRD:
     
    1. Form BD - Uniform Application for Broker-Dealer Registration. Available from FINRA or SEC.
    2. Form U4 -Application for Securities Registration or Transfer for each principal officer, agent, or employee who directly supervises, or will directly supervise, any Utah licensed agent.
    3. Licensing Fee - $130.00 for the firm and $40.00 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.
       
  • Applicants that are not members of the Securities Investor Protection Corporation (SIPC), who will have custody or discretionary authority over client funds or securities, may be required to post a bond and provide proof of that bond to the Utah Division of Securities.
     
  • 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 $130.00 fee for the firm and the $40.00 fee for each agent must be submitted to the Central Registration Depository (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 a FINRA Form BDW with the CRD. A withdrawal is effective 30 days following the receipt of SEC Form BDW unless the Division notifies the applicant otherwise.