| (a) Securities dealer application requirements. A complete
application consists of the following and must be filed in paper form
with the Securities Commissioner:
(1) Form BD;
(2) Form U-4 for the designated officer and a Form
U-4 for each agent to be registered (officers of a corporation or
partners of a partnership shall not be deemed agents solely because
of their status as officers or partners);
(3) a copy of articles of incorporation, partnership
agreement, articles of association, trust agreement, or other documents
which indicate the form of organization, certified by the appropriate
jurisdiction or by an officer or partner of the applicant;
(4) a balance sheet prepared in accordance with United
States generally accepted accounting principles reflecting the financial
condition of the dealer as of a date not more than 90 days prior to
the date of such filing. The balance sheet should be compiled, reviewed,
or audited by independent certified public accountants or independent
public accountants, or must instead be certified by the applicant's
principal financial officer. If certified by the principal financial
officer of the applicant, such officer shall make the certification
on Form 133.18, Certification of Balance Sheet by Principal Financial
Officer.
(5) any other information deemed necessary by the Securities
Commissioner to determine a dealer's financial responsibility or a
dealer's or agent's business repute or qualifications; and
(6) the appropriate registration fee(s).
(b) Designated officer registration. Dealers, including
an individual filing as a sole proprietor, must file a Form U-4 application
for a designated officer to register in connection with the registration
of the dealer. The dealer's designated officer must be an officer,
partner, or the sole proprietor of the dealer and have completed the
necessary registration and examination requirements. If the designated
officer of a dealer, other than a sole proprietor, resigns or is otherwise
removed from his or her position, the dealer shall make an application
to register another officer or partner within 30 days.
(c) Branch office designation and inspection.
(1) A dealer may designate a branch office upon initial
application of the dealer or by amendment to a current Form BR. No
sales-related activity may occur in any branch office location until
such time as the dealer has notified the Securities Commissioner that
such location will function as a branch office by submitting Form
BR on CRD for FINRA member firms. For non-FINRA member firms, the
request is made by submitting Form BR in paper form to the Securities
Commissioner.
(2) Simultaneous with the designation of a branch office,
a supervisor must be designated for that branch office. A supervisor
is not required to be registered as a FINRA principal, but must be
registered in Texas as an agent and is responsible for supervision
of the activities of the branch office. A supervisor may not supervise
sales activities encompassing a broader range of products than those
covered by the supervisor's qualification examination(s). Within 10
business days after a supervisor ceases to be employed or registered
in such capacity by the dealer, the dealer must designate a new supervisor,
qualified by passage of the appropriate examinations, for the branch
office.
(3) Each branch office of a dealer who is registered
with the Securities Commissioner is subject to unannounced inspections
at any time during normal business hours.
(d) Automatic withdrawal of a dealer or agent application
for registration that has been pending for at least 90 days. If an
application for dealer or agent registration has been pending for
at least 90 days and the applicant has failed to substantively respond
to a written request for information sent by certified mail to the
applicant's address as set forth in the application, an automatic
withdrawal will occur. The written request must have advised the applicant
that if a substantive response is not received within 30 days from
the date of the certified request, the application will be withdrawn
automatically. Regardless of how long an application has been pending,
it may not be withdrawn automatically without sending certified notice
of this subsection to the address set forth in the application and
allowing the applicant 30 calendar days from the date of the notice
to provide a substantive written response. A copy of this subsection
and the most recent written request for information will be included
with the certified letter.
(e) Central Registration Depository System (CRD).
(1) Whenever the Texas Securities Act or Board rules
require the filing of an application with the Securities Commissioner
for dealer or agent registration, members of FINRA or applicants for
membership in FINRA shall make such filing electronically through
the CRD which is jointly operated by FINRA and the North American
Securities Administrators Association, Inc. (NASAA). Applicants shall
use the applicable uniform form for the submission of the filing in
question and shall supplement their electronic filing by filing, in
paper form, the items listed in paragraphs (3) - (6) of subsection
(a)(3) - (6) of this section, directly with the Commissioner.
(2) Uniform forms submitted through the CRD that designate
Texas as a jurisdiction in which the filing is to be made are deemed
to be filed with the Securities Commissioner and constitute official
records of the Board.
|
| Source Note: The provisions of this §115.2 adopted to be effective August 12, 2001, 26 TexReg 5794; amended to be effective November 26, 2001, 26 TexReg 9581; amended to be effective March 6, 2002, 27 TexReg 1475; amended to be effective June 12, 2002, 27 TexReg 4935; amended to be effective August 22, 2004, 29 TexReg 7968; amended to be effective January 8, 2006, 30 TexReg 8866; amended to be effective April 2, 2006, 31 TexReg 2845; amended to be effective February 21, 2008, 33 TexReg 1319; amended to be effective August 18, 2011, 36 TexReg 5094; amended to be effective October 6, 2015, 40 TexReg 6888; amended to be effective November 12, 2019, 44 TexReg 6859 |
