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Broker-Dealers


Read securities Broker-Dealer License Requirements (requires Adobe Acrobat).

The State of Minnesota does not require broker dealers to mail us a copy of their audited financial reports.

Examinations:

Each partner, officer, director or person serving in a similar capacity, must have passed the required agent and principal examinations, or represent in writing that they will not be in engaged in the sale of securities in Minnesota.

One full-time supervisor, responsible for compliance matters, must satisfy the following:

  • The individual has acted in a similar supervisory capacity for three of the past five years. Submit a detailed explanation of such experience (the Form U-4 does not provide a sufficiently detailed description).

  • Must have passed the Series 63 or the Series 66 exam.

  • Must have passed the FINRA principal examination or equivalent.

  • The supervisor is not required to hold an agent license if they are not engaged in the sale of securities.

Disclosure Information:

State by signature of an authorized principal or officer whether applicant:

  • Has had a judgment or order entered against them in any civil or administrative proceeding in which fraud was an element (other than those previously described in Form BD)

  • Has any civil or criminal complaint or indictment currently pending, including any officer, director or partner

  • Has any unsatisfied judgments currently outstanding, including any officer, director or partner

  • Has any institutional or retail clients in Minnesota, including inactive accounts.

If applicant answers yes to any of the above situations, provide a detailed written explanation.

Note: This disclosure information should include all actions with any state or federal court or agency or self-regulatory organization.

Net Capital Requirements:

  • $25,000 minimum

  • $5,000 if the firm does not hold customer funds or securities

  • 15:1 aggregate indebtedness to net capital ratio

  • Note: Bonds are not required for broker-dealers.

Forms (available from FINRA):

  • Complete Form BD , broker-dealer application including a manually signed, dated and notarized Execution page. (copies of the amendments from the CRD website are not acceptable).

  • Current Focus IIA report , available from FINRA (note: the filing applications page must be viewed with a high-security browser). A printed copy is required by the state.

  • $200 annual fee, payable to and sent to the FINRA.

Financial Information:

  • Attach a copy of applicant's latest audited financial statement, including net capital computation.

  • If the audited financial report is dated more than 135 days prior to the date of application, attach a copy of an unaudited financial report, Joint Regulatory Report or Focus Report IIA, which must be dated no more than 135 days prior to the date of application.

  • The State of Minnesota does not require broker dealers to mail us a copy of their audited financial reports on an annual basis.

Non-Minnesota businesses:

License Renewal:

  • Annual renewals due on December 31 through the FINRA Central Registration Depository. Renewal notification will be sent by the CRD.