Filing Requirements

Please file the following with the Securities Division:

  1. A completed Form BD, reflecting the firm's current status, and a Form U-2.
  2. A cover letter stating: the type of registration your firm is seeking (general securities or a limited registration); why your firm is not required to register with the Securities and Exchange Commission and FINRA; and the name(s) and CRD or Social Security Number(s) of the designated principals who have taken the required examinations.
  3. Proof of passing the qualifying examinations by your firm's designated principals.
  4. A balance sheet as of a date not more than ninety days before the date of filing, including computation of net capital and the aggregate indebtedness ratio. If net capital is insufficient, a surety bond in the required amount will satisfy the net capital requirement.
  5. A check for $160 payable to "Washington State Treasurer."

In addition, all persons who will be selling securities for the broker dealer to Washington residents must register as salespersons. This is accomplished for each salesperson by filing the following with the Securities Division:

  1. A completed Form U-4, with original signatures.
  2. A check for $50, payable to "Washington State Treasurer."
  3. Proof of passing the appropriate qualifying examination(s).

What examinations are required to qualify the firm for a broker-dealer registration?

The examinations required are different for the various types of broker-dealer registration available in Washington. WAC 460-20B-040 specifies that the designated principal must have passed the Uniform Securities Agent State Law Exam (Series 63) or the Uniform Combined State Law Examination (Series 66) and the appropriate qualifying examination or examinations administered by such national securities association (such as FINRA) for the activities in which the broker-dealer is to engage. If your firm does not specify the type of registration it is applying for, the Securities Division will assume that it is seeking a general securities registration.

Broker-Dealer Registrations Which May Be Pursued in Washington

General Securities

This registration allows a registrant to engage in all types of broker-dealer activities. It requires the following examinations of the designated principal:

  1. FINRA General Securities Principal Examination, Series 24
  2. Uniform Securities Agent State Law Examination, Series 63
  3. FINRA Financial and Operations Principal Examination, Series 27. This examination may be waived for firms that do not have custody of customer's funds or securities and do not clear the customer's transactions (for example, a broker-dealer clears its transactions through another firm—please note the clearing firm must also be registered in this state).

Note: Salespersons will need both a Series 7 and 63.

Limited Registration: Investment Company Securities and Variable Contracts

This registration limits the broker-dealer activities to sales or purchases of investment company securities (including mutual funds) and variable contracts. It requires the following examinations of the designated principal:

  1. FINRA Investment Company Products/Variable Contracts Principal Examination, Series 26
  2. Uniform Securities Agent State Law Examination, Series 63.

Note: Salespersons will need both a series 6 and 63.

Limited Registration: Limited Partnership Interests

This registration limits the broker-dealer activities to sales or purchases of limited partnership interests. It requires the following examinations of the designated principal:

  1. FINRA Direct Participation Programs Principal Examination, Series 39
  2. Uniform Securities Agent State Law Examination, Series 63

Note: Salespersons will need both a series 22 and 63.

Limited Registration: Municipal Bonds

This registration limits the broker-dealer activities to sales or purchases of municipal bonds. It requires the following examinations of the designated principal:

  1. MSRB Municipal Securities Principal Examination, Series 53
  2. Uniform Securities Agent State Law Examination, Series 63

Note: Salespersons will need both a series 52 and 63.

Limited Registration: Mortgage Paper Securities

This registration limits the broker-dealer to transactions in mortgage paper securities as defined by WAC 460-33A-015(4). It requires the following examination of the designated principal:

  1. Uniform Securities Agent State Law Examination, Series 63

Note: Salespersons will need the series 63.