Md. Code Regs. 02.02.02.01

Current through Register Vol. 51, No. 7, April 5, 2024

Section 02.02.02.01 - Initial Registration as Broker-Dealer

A. Scope. This regulation governs applications for initial registration as a broker-dealer in Maryland.

B. Financial Industry Regulatory Authority (FINRA) Members. An applicant that is already a member of, or has applied for membership in, the FINRA shall:

(1) File with the Central Registration Depository System (CRD) the information required by Form BD (Uniform Application for Broker-Dealer Registration) and the fee required by the Maryland Securities Act, Corporations and Associations Article, § 11-407, Annotated Code of Maryland; and

(2) File with the Commissioner other information the Commissioner may reasonably require.

C. Non-FINRA Members.

(1) An applicant that is not a member of, or has not applied for membership in, the FINRA shall file with the Commissioner an application upon Form BD (Uniform Application for Broker-Dealer Registration).

(2) The application shall contain:

(a) A financial statement prepared in accordance with 17 CFR § 240.17a-5(d) (SEC Rule 17a-5(d), Annual Filing of Audited Financial Statements), which is incorporated by reference, as of a date within 90 days of the date on which the statement is filed;

(b) If the applicant is a corporation, a resolution authorizing the filing of the application;

(c) The fee required by the Maryland Securities Act, Corporations and Associations Article, § 11-407, Annotated Code of Maryland;

(d) A statement or certificate showing compliance with, or exemption from, the examination requirement of Regulation .06 of this chapter; and

(e) Other information the Commissioner may reasonably require.

D. Completion of Filing. An application for initial registration as a broker-dealer is not considered filed for purposes of the Maryland Securities Act, Corporations and Associations Article, § 11-405, Annotated Code of Maryland, until:

(1) The applicant has complied with the examination requirement of Regulation .06 of this chapter;

(2) The required fee and all required submissions have been received by the Commissioner;

(3) If the applicant is seeking membership in the FINRA, the applicant is approved as a member of the FINRA; and

(4) The applicant has submitted any other information the Commissioner has requested.

Md. Code Regs. 02.02.02.01

Regulations .01 adopted effective January 17, 1994 (21:1 Md. R. 26)
Regulation .01B, D amended effective June 15, 1998 (25:12 Md. R. 944)