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Maine.gov> PFR Home > Securities Home Page > Instructions for NASD Broker-Dealer and Agent Licensing

Instructions for FINRA Broker-Dealer and Agent Licensing

On December 31, 2005, a new statute, the Maine Uniform Securities Act (the "Act"), took effect and replaced existing state securities law. The adoption of the new Act required the State of Maine Office of Securities (the "Office") to promulgate new rules and to amend or repeal its existing rules, which also took effect on December 31, 2005.

Chapter 504: Broker-Dealer and Agent Licensing is a new rule that outlines the licensing procedures and other requirements for broker-dealers and agents licensed with the Office.

The following information outlines basic instructions for NASD broker-dealer and agent licensing.

Application for Licensure

Initial application. The application for initial licensure pursuant to Section 16406(1) of the Act shall be made by a broker-dealer completing Form BD or an agent completing Form U4, in accordance with the form instructions, and by filing the form with the Central Registration Depository (the"CRD").

Broker-Dealer
For broker-dealer applicants, the CRD will deduct the $250.00 license fee from the firm's account and forward it to the Office along with an electronic application for licensing. Upon receipt of the Form BD application, the Office will review the CRD information on the firm and the individuals listed on Schedules A and B. If further information is required, the Office will send a letter to the broker-dealer requesting additional documentation.

Agents
A broker-dealer seeking to license an agent should contact FINRA for instructions. For agent applicants, the CRD will deduct the $50.00 license fee from the firm's account and forward it to the Office along with an electronic application for licensing. Upon receipt of the Form U4 application, the Office will review the individual's CRD information. If further information is required, the Office will send a letter to the broker-dealer requesting additional documentation.

Completion of filing. An application for initial licensure or a renewal is not considered filed for purposes of Section 16406 of the Act until all required forms have been completed and filed, all required fees have been paid, and all additional information and records requested by the administrator under Section 16406 have been received.

Annual renewal
Pursuant to Section 16406(4) of the Act, a license is effective until midnight on December 31st of the year for which the application for licensing was filed. A licensee shall renew a license through the CRD and pay the fee required by Rule Chapter 541: Initial and Annual Renewal Fees.

Amendments
Pursuant to Section 16406(2) of the Act, if the information or record contained in an application filed under this section is or becomes inaccurate or incomplete in any material respect, the licensee shall promptly file a correcting amendment. An amendment will be considered to be filed "promptly" if it is filed within thirty (30) days of the event that requires the filing. All Form BD amendments and Form U4 amendments should be filed with the CRD.

Agent Examination Requirements

Rule Chapter 504 requires that every individual applicant for a license shall take and pass:

  1. The NASAA Series 63 Uniform Securities Agent State Law Examination or the NASAA Series 66 Uniform Combined State Law Examination; and
  2. A securities representative examination or examinations accepted by FINRA for the types of activity in which the applicant will be engaged.

A licensed agent who has passed only one or more of FINRA's limited representative examinations shall be deemed to be licensed in Maine only for those business activities for which those examinations would qualify the agent under FINRA rules, and it shall be unlawful for that person to effect any other securities transactions in Maine as an agent.

Requirements Inapplicable To Currently Licensed Agents
The examination requirements established in Section 6(1) of Chapter 504 and discussed in Item 1 above shall not apply to any person licensed as an agent in Maine on the date Chapter 504 took effect unless that person later ceases to be licensed for a continuous period of at least two years.

Agent Training Required Prior to Licensing
Pursuant to Section 6(5) of Chapter 504, each individual applying for an initial license as an agent, who either resides in or has an office in Maine, shall attend a seminar conducted by the Administrator for agent and investment adviser representative applicants.

Financial Statements
Firms are not required to submit annual audited financial statements or Focus Reports unless specifically requested to do so by this office.

Change in Ownership or Control

Rule Chapter 511: Change of Ownership or Control of a Broker-Dealer or Investment Adviser may require broker-dealers to file a new licensing application when their ownership or control changes substantially. This chapter requires a new application when the ownership or control of a broker-dealer has changed by more than 45% within a 10-year period. Please review the full text of the rule to determine applicability and for specific filing requirements.

Foreign Corporation

Registration as a foreign corporation is not a condition imposed by the Maine Uniform Securities Act for licensing as a broker-dealer. However, as a foreign corporation you may be subject to registration with the Secretary of State. Any questions concerning foreign corporation registration should be directed to:

Secretary of State
Bureau of Corporations, Elections and Commissions
101 State House Station
Augusta, ME 04333-0101
Tel: (207) 624-7752
E-mail: cec.corporations@maine.gov

Questions related to broker-dealer and agent licensing should be directed to Billie-Jo Pyska. Questions related to the agent training seminar should be directed to Dana Faucher. MAINE OFFICE OF SECURITIES Tel: (207) 624-8551

Other Links and Telephone Numbers

FINRA
Call Center: (301) 590-6500

U.S. Securities and Exchange Commission (SEC)
Information Line (General SEC Information)
Tel: (202) 942-8088

North American Securities Administrators Association, Inc. (NASAA)
Tel: (202) 737-0900

Last Updated: June 17, 2013