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Broker Dealer

SENATE BILL 28

RECENT LEGISLATION: Nevada State Senate Bill 28 (“SB 28”), effective July 1, 2013, prohibits the unethical or dishonest practice in the securities business of utilizing certain “senior designation” certifications, as well as other unethical conduct. SB 28 also modifies the information that may be considered during licensing proceedings, and makes it a specific violation of Nevada securities laws to provide any materially false, fraudulent or fictitious statement during an investigation. For these and other changes to the Nevada Uniform Securities Act, see the complete copy of SB 28 as enrolled, at the following web address. https://www.leg.state.nv.us/Session/77th2013/Bills/SB/SB28_EN.pdf  

 

An applicant for licensing as a broker-dealer in Nevada, which is a member of the FINRA or is applying for membership, shall file page one and two of the Form BD with the FINRA , designating Nevada as the state requested for licensing. The registration fee for licensing in Nevada is $300.00, which will be taken out of the firm's CRD account.

Those out-of-state firms securing a branch office in the state of Nevada must file a Certificate of Authority to do Business in Nevada with the Corporations Division of the Secretary of State.

An application for licensing of a broker-dealer in Nevada, which is not a member of the FINRA shall be filed with the Division, including the following items:

  1. A copy of Form BD with original signatures.
  2. A balance sheet of the applicant prepared in accordance with generally accepted accounting principles and accompanied by an auditor's report containing an unqualified opinion of an independent certified public accountant. The balance sheet shall have been prepared as of a date within sixty days prior to the date on which application for registration is filed.
  3. A fidelity bond in a form acceptable to the Division or membership in Securities Investor Protection Corporation (SIPC).
  4. A Form U-4, plus proof of passing the Series 63 or 66 exam and principal exams for a designated official of the broker-dealer.

Renewal of Broker-Dealer License
Renewal of broker-dealer license must be filed prior to December 31st of each year. For broker-dealers who are not members of the FINRA, renewal is effected by submitting a written request for renewal, proof of bonding or SIPC membership, and a fee as determined by NRS 90.360. For broker-dealers who are members of the FINRA, renewal is accomplished by sending the required fee under NRS 90.360 to the CRD.

Withdrawal of License
A non-FINRA broker-dealer may withdraw its license by filing a Form BDW with the Division. An FINRA broker-dealer may withdraw its license by filing a Form BDW with the CRD.

Bonding of Broker-Dealers
All broker-dealers not members of the FINRA or who are not registered under the Securities & Exchange Act of 1934 shall be bonded in the amount of $10,000 by a corporate bonding company, qualified to do business in the state of Nevada under NAC 90.345.

For questions on the application of broker dealer contact: 

Terry Sanchez, Administrative Assistant III, Licensing at 702-486-2440

Last updated: 6/28/2013 1:55:29 PM