Pennsylvania Code & Bulletin
COMMONWEALTH OF PENNSYLVANIA

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10 Pa. Code § 303.011. Broker-dealer registration procedures.

§ 303.011. Broker-dealer registration procedures.

 (a)  An applicant for initial registration as a broker-dealer shall complete a Uniform Application for Broker-Dealer Registration (Form BD), or a successor form.

 (b)  An applicant which is not a member of FINRA or a member of a National securities exchange shall complete and file with the Department:

   (1)  A copy of Form BD.

   (2)  The filing fee required under section 602(d.1) of the act (70 P.S. §  1-602(d.1)).

   (3)  The compliance assessment required under section 602.1(a)(3) of the act (70 P.S. §  1-602.1(a)(3)).

   (4)  Financial statements in the form required under subsections (e), (f) and (g).

 (c)  An applicant which is not a member of FINRA but is a member of a National securities exchange shall complete and file with the Department:

   (1)  A copy of Form BD.

   (2)  The filing fee required under section 602(d.1) of the act.

   (3)  The compliance assessment required under section 602.1(a)(3) of the act.

 (d)  An applicant which is a member of FINRA shall file with the Department:

   (1)  Form BD in the manner set forth in §  603.011(f) (relating to filing requirements).

   (2)  The filing fee required under section 602(d.1) of the act.

   (3)  The compliance assessment required under section 602.1(a)(3) of the act.

 (e)  Except for applicants described in subsections (c) and (d), applicants shall file a statement of the financial condition of the applicant which meets all of the following conditions:

   (1)  The statement is prepared in accordance with generally accepted accounting principles.

   (2)  The statement is accompanied by an auditor’s report containing an unqualified opinion of an independent certified public accountant, which is as of either of the following:

     (i)   The end of the applicant’s most recent fiscal year.

     (ii)   The preceding fiscal year if:

       (A)   The statement of financial condition for the most recently ended fiscal year is unavailable.

       (B)   The application is filed within 14 months of the end of the preceding fiscal year.

 (f)  Except for applicants described in subsections (c) and (d), if the date of the most recent audited statement of financial condition is more than 45 days before the date of filing, the applicant also shall file an unaudited statement of financial condition as of a date within 45 days of the date of filing which the Department may require include the filing of separate schedules:

   (1)  Listing the securities owned by the applicant valued at the market.

   (2)  Stating material contractual commitments of the applicant not otherwise reflected in the statements.

 (g)  Except for applicants described in subsections (c) and (d), if an applicant has commenced to act as a broker-dealer, the audited statement of financial condition shall be accompanied by an audited statement of income which is as of either of the following:

   (1)  The end of the applicant’s most recent fiscal year.

   (2)  The preceding fiscal year if:

     (i)   The statement of income for the most recently ended fiscal year is unavailable.

     (ii)   The application is filed within 14 months of the end of the preceding fiscal year.

 (h)  An applicant described in subsections (c) and (d) shall provide to the Department, within 5 days of receipt of a written or electronic request, a copy of any financial statement or financial information required under the Securities and Exchange Commission rules or the rules of a National securities association or National securities exchange of which the applicant is a member.

 (i)  A broker-dealer registered under the act shall take steps necessary to ensure that material information contained in its Form BD remains current and accurate. If a material statement made in Form BD becomes incorrect or inaccurate, the broker-dealer shall file with the Department an amendment on Form BD within 30 days of the occurrence of the event which required the filing of the amendment.

Authority

   The provisions of this §  303.011 amended under sections 303(a), (c) and (d) and 609(a) of the Pennsylvania Securities Act of 1972 (70 P.S. § §  1-303(a), (c) and (d) and 1-609(a)); section 202.C of the Department of Banking and Securities Code (71 P.S. §  733-202.C); and section 9(b) of the Takeover Disclosure Law (70 P.S. §  79(b)).

Source

   The provisions of this §  303.011 adopted March 29, 1974, effective March 30, 1974, 4 Pa.B. 582; amended April 4, 1975, effective April 5, 1975, 5 Pa.B. 722; amended June 8, 1984, effective June 9, 1984, 14 Pa.B. 1941; amended January 17, 1992, effective January 18, 1992, 22 Pa.B. 278; amended December 28, 2001, effective December 29, 2001, 31 Pa.B. 7032; transferred and renumbered from 64 Pa. Code §  303.011, December 14, 2012, effective December 15, 2012, 42 Pa.B. 7533; amended January 12, 2018, effective January 13, 2018, 48 Pa.B. 389. Immediately preceding text appears at serial pages (364735) to (364736).

Cross References

   This section cited in 10 Pa. Code §  603.031 (relating to public inspection of records).



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