Kan. Admin. Regs. § 81-3-1 - Registration procedures for broker-dealers and agents
(a) General provisions. Each applicant shall
be at least 18 years of age. If the applicant is not an individual, then the
directors, officers, managing partners, or managing members of the applicant
shall be at least 18 years of age.
(b) Registration requirements for
broker-dealers.
(1) Initial application.
(A) CRD filing requirements. Each applicant
for initial registration as a broker-dealer shall complete form BD in
accordance with the form instructions and shall file the form with the CRD,
unless the applicant is not required to file with the CRD for FINRA membership
or SEC registration. Each application filed with the CRD shall include the
following:
(i) The registration fee specified
in K.A.R. 81-3-2(a);
(ii) any
reasonable fee charged by FINRA for filing through the CRD system;
and
(iii) a current list of the
addresses of all branch offices and the names of all branch
supervisors.
(B) Direct
filing requirements. Each applicant for initial registration as a broker-dealer
that is required to file with the CRD pursuant to paragraph (b)(1)(A) shall
file either of the following, as applicable, directly with the administrator:
(i) The annual report for the applicant's
last fiscal year pursuant to SEC rule 17a-5(d), 17 C.F.R. 240.17a-5(d), as
adopted by reference in K.A.R. 81-2-1, unless the applicant was not required to
file an annual report with FIN-RA and the SEC, and part II of the applicant's
most recent FOCUS report on form X-17A-5 that includes a statement of financial
condition dated within 90 days of filing for registration, unless the applicant
was not required to file a FOCUS report with FINRA and the SEC; or
(ii) a statement of financial condition with
notes to the statement presented in conformity with GAAP dated within 90 days
of filing for registration, including disclosure of the applicant's net capital
or a supplemental schedule of net capital pursuant to K.A.R.
81-3-7(d).
(C) Filing
requirements for an applicant that is not required to file with CRD for FINRA
membership or SEC registration. An applicant that is not required to file with
CRD shall file the following directly with the administrator:
(i) A printed form BD, completed in
accordance with the form instructions;
(ii) the registration fee specified in K.A.R.
81-3-2(a); and
(iii) the statement
of financial condition specified in paragraph (b)(1)(B)(ii).
(2) Effective date of
registration. Each registration shall become effective the 45th day after a
completed application is filed unless approved earlier by the administrator. If
the administrator or the administrator's staff has given written notice of
deficiencies in the application, the application shall not be considered
complete until an amendment is filed to resolve the deficiencies.
(3) Expiration and annual renewal of
registration. Each broker-dealer registration shall expire on December 31, and
each application for renewal of registration shall be filed as follows:
(i) If the initial application for
registration was filed with the CRD, the renewal application shall be filed
with the CRD not later than the deadline established by the CRD. Each
application for renewal of registration shall include the fee specified in
K.A.R. 81-3-2(a) and any reasonable fee charged by FINRA for filing through the
CRD system. Each applicant for renewal shall also update information in the CRD
system as necessary, on or before December 31, including the addresses of all
branch offices and the names of all branch supervisors.
(ii) If the initial application for
registration was filed directly with the administrator pursuant to paragraph
(b)(1)(C), the renewal application shall be filed directly with the
administrator and shall include the fee specified in K.A.R. 81-3-2(a). Each
application for renewal filed directly with the administrator shall include an
updated form BD with amendments for material changes, if any, as specified in
paragraph (b)(4).
(4)
Updates and amendments. Each registered broker-dealer shall promptly file an
amendment to form BD, in accordance with the instructions to form BD, whenever
there is any material change in any information, exhibits, or schedules
submitted, or circumstances disclosed in its last filed form BD. An amendment
shall be considered to be filed promptly if the amendment is filed within 30
days of the event that requires the filing of an amendment. Material changes
shall include the following:
(A) A change in
firm name, ownership, management, or control of a broker-dealer, or a change in
any of its controlling persons; a change of business address; or the creation
or termination of a branch office in Kansas;
(B) a change in the type of entity, general
plan, or nature of a broker-dealer's business, method of operation, or type of
securities in which it is dealing or trading;
(C) insolvency, dissolution, liquidation, or
a material adverse change or impairment of working capital, or noncompliance
with the minimum net capital as required by K.A.R. 81-3-7;
(D) termination of business or discontinuance
of activities as a broker-dealer;
(E) the filing of a criminal charge or civil
action against a registrant, or a controlling person, in which a fraudulent,
dishonest, or unethical act is alleged or a violation of a securities law is
involved; or
(F) the entry of an
order or proceeding by any court or administrative agency against a registrant
denying, suspending, or revoking a registration, or threatening to do so, or
enjoining the registrant from engaging in or continuing any conduct or practice
in the securities business.
(5) Withdrawal and termination of
registration.
(A) Each application that has
been on file for six months without any action taken by the applicant shall be
considered withdrawn.
(B) If a
broker-dealer desires to withdraw and terminate registration or registration is
terminated by the administrator, the broker-dealer shall immediately file a
completed form BDW either with the CRD or, if the broker-dealer was registered
pursuant to paragraph (b) (1)(C), directly with the administrator.
(c) Registration
requirements for agents.
(1) Initial
application. Each applicant for registration as an agent shall complete form
U-4 in accordance with the form instructions. The form for an agent of a
broker-dealer shall be filed electronically with the CRD. A form U-4 shall be
filed directly, in either paper or electronic form, with the administrator for
an agent who is associated solely with an issuer or with an intrastate
broker-dealer registered pursuant to paragraph (b)(1)(C). Each application for
initial registration shall include the following items:
(A) The registration fee specified in K.A.R.
81-3-2(b);
(B) any reasonable fee
charged by FINRA for filing through the CRD system; and
(C) proof of completion of the series 63 or
series 66 examination with a passing score, in addition to successful
completion of one other examination approved by the administrator and required
for registration with FINRA. This examination requirement may be waived by the
administrator for an applicant who has previously passed the required written
examinations and whose last effective registration was not more than two years
before the date of the filing of the present registration application.
Additional examination requirements may be imposed by the administrator, or any
applicant may be exempted from examination requirements pursuant to K.S.A.
17-12a412(e), and amendments thereto.
(2) Effective date of registration.
(A) Initial registration. Each registration
shall become effective the 45th day after a completed application is filed
unless the application is approved earlier by the administrator. If the
administrator or the administrator's staff has given written notice of
deficiencies in the application, the application shall not be considered
complete until an amendment is filed to resolve the deficiencies.
(B) Transfer of employment or association. If
an agent terminates employment by or association with a broker-dealer and
begins employment by or association with another broker-dealer, and the second
broker-dealer files an application for registration for the agent within 30
days after the termination, the application shall become effective pursuant to
K.S.A. 17-12a408(b), and amendments thereto.
(3) Expiration and annual renewal of
registration. Each agent registration shall expire on December 31, and each
application for renewal of registration shall be filed not later than the
deadline established by the CRD or the administrator, if filed directly with
the administrator. Each application for renewal of registration shall include
the fee specified in K.A.R. 81-3-2(b) and any reasonable fee charged by FINRA
for filing through the CRD system.
(4) Updates and amendments. Each agent's
employing or associated broker-dealer or issuer shall promptly file with the
CRD or the administrator an amendment to form U-4, in accordance with the
instructions to form U-4, whenever there is any material change in any
information, exhibits, or schedules submitted, or circumstances disclosed in
the agent's last filed form U-4. An amendment shall be considered to be filed
promptly if the amendment is filed within 30 days of the event that requires
the filing of an amendment. Material changes shall include any change in the
registrant's name, residential address, office of employment address, and
matters disclosed in the "disclosure questions" portion of form U-4.
(5) Withdrawal and termination of
registration.
(A) Each application that has
been on file for six months without any action taken by the applicant shall be
considered withdrawn.
(B) If an
agent's employment by or association with a broker-dealer or issuer is
discontinued or terminated, the broker-dealer or issuer shall file a notice of
termination within 30 days. If the agent commences employment by or association
with another broker-dealer or issuer, that broker-dealer or issuer shall file
an original application for registration.
(C) Termination of a broker-dealer's or
issuer's registration for any reason shall automatically constitute
cancellation of all associated agents' registrations.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.