Securities Agent, Securities Broker-Dealer
Agency contact information:
The Minnesota Department of Commerce is the chief regulator for the banking, energy, insurance, real estate, securities, telecommunications industries and also operates Minnesota's Unclaimed Property.
Minn. Stats. 80A
MINNESOTA RULES 2876.
Agent applications on Form U-4 (available from FINRA) should be mailed to the FINRA.
Agents must pass Series 63 or Series 66 exams plus one FINRA agent exam
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.
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 :
-$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 (Financial Industry Regulatory Authority)):
-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.
-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.
-Complete Form U-2, Consent to Service of Process.
-Apply with the Office of the Minnesota Secretary of State to transact business as a foreign corporation.
Securities Broker Dealer Agent - $50 initial and renewal
Securities Broker Dealer (company) - $200 annual fee, payable to and sent to the FINRA.
Licensing surcharge to be assessed
The Minnesota Legislature passed legislation requiring a 10% surcharge of no less than $5 and no more than $150 on each business, commercial, professional or occupational license. The funding from this surcharge will go to MN.IT Services (formerly Office of Enterprise Technology (OET)), which is establishing an electronic licensing system for the state. The surcharge will be in place through June 30, 2015. See Minn. Stat. § 16E.22.
Period of Issuance:
Other Pertinent Information:
More information is available on the Securities section of the the MN Dept. of Commerce website at Securities Registration.