No person shall be registered as a dealer unless satisfactory
evidence shall have been furnished to the Secretary of the trustworthiness of
the applicant and the applicant's officers, directors, partners, principal
members or trustees. No person shall be registered as a dealer until that
person shall have given evidence of competency to engage in the business of
dealing in, buying or selling securities. Every person or officer who sells
securities in this State shall be deemed to be a salesperson and must be
registered as such in accordance with Section 8.B of the Act.
a) Each applicant for registration as a
dealer shall deliver to FINRA Form BD as provided in Appendix C or, if already
on file with FINRA, the requisite amendment that indicates that an application
is on file in this State and pay to FINRA the registration fee specified in
Section
130.110.
b) Each applicant for registration as a
dealer shall file with the Securities Department a complete and current
application and pay to the Securities Department the branch office fee, if any,
specified in Section 130.110. The application shall consist of the following:
1) Schedule E of Form BD listing each branch
office in this State, if any;
2) An
unaudited balance sheet for the applicant verified by the chief financial
officer of the dealer or other person who holds a similar position as of a date
not more than 60 days prior to the date that the application is deemed to be
filed with the Securities Department and applicable computations which
demonstrate compliance with Section
130.826
as of the date of the balance sheet;
3) One copy of the Illinois Form designating
each principal of the dealer;
4)
One copy of the Illinois Form setting forth the dealer's minimum net capital
requirement;
5) If the applicant
will not have its principal office in this State and intends to keep the
records required under Section
130.825
outside of this State, one copy of the Illinois Form requesting a waiver of the
requirement to maintain its records in this State;
6) Page (2) of Form U4 for each officer and
director of the dealer, except that for applicants that are members of FINRA,
page (2) need only be submitted for those officers and directors for whom a
Form U4 has not been filed with the Securities Department on the behalf of the
applicant through the CRD; and
7)
Any other information or document that the Securities Department may require to
determine the dealer's business repute or to clarify statements made in the
application for registration.
c) Each person applying for registration as a
dealer shall give evidence of competency to engage in the business of dealing
in, buying or selling securities by providing the Secretary of State with proof
of obtaining a passing score onthe examinations listed in Section
130.822,
to demonstrate to the Secretary that the principal or principals have
sufficient knowledge of the securities business and the laws relating to that
business. In the case of a person, other than a natural person, filing an
application for registration as a dealer, all of the principals who, on behalf
of the applicant, participate in or are responsible for the sale of securities
in this State are required to take such an examination on behalf of the
applicant. Each registered dealer shall amend the list not later than 10
business days after any change of any principal or principals.
d) At or prior to registration of the dealer,
there must be on file with the Securities Department, whether through the CRD
or otherwise, the following:
1) Proof of
passing one or more of the requisite examinations listed in Section
130.822
for each principal required to take the examinations required by subsection
(c), unless the Secretary issues an Order waiving the examination requirements
pursuant to Section
130.823
and Section 8.B(9) of the Act;
2)
Form U4 for each officer and director or each other person performing a similar
function of the applicant who is required to register as a salesperson as
provided in this Section, and a page (2) of Form U4 for each other officer or
director of the applicant;
3) Any
and all amendments required to the application and documents filed pursuant to
subsection (a), whether as the result of a change in the information provided
since the date of filing or otherwise; and
4) In the case of a dealer that is not a
member of FINRA, an application for registration of a salesperson on Form U4.
The Securities Department shall grant concurrent registration of a salesperson
pursuant to such application upon the registration of the dealer unless the
dealer is ineligible for registration under Section 8.E(1) of the Act. At least
one salesperson must have a registration pending on behalf of a dealer that is
a FINRA member with the Securities Department prior to the grant of
registration. Notwithstanding the foregoing, any dealer that effects trades
solely as a clearing dealer on behalf of other dealers need not register any
salesperson.
e) The
application and documents on file with the Securities Department with respect
to the dealer shall be amended from time to time whenever a change occurs that
renders the information contained in the document not accurate in any material
respect. The amendment shall be filed with FINRA if the dealer is a member of
FINRA, or with the Securities Department if the dealer is not a member of
FINRA, within 10 business days after the occurrence of the change.
f) For the limited purpose of this Section
and solely to implement a supplemental procedure known as the CRD, a computer
based registration system, for the registration and re-registration of dealers
and salespersons, the term "in the Office of the Secretary of State", as used
in Sections 8.B and 8.C of the Act, and "with the Secretary of State", as used
in Section 8.H of the Act, and "with the Securities Department", as used in
Section
130.820
of this Part, shall include a filing made with FINRA utilizing the single
automated system referred to in this subsection as the CRD.