Persons interested in becoming a dealer or agent must complete the Form BD and a Form U4. The Form BD is the general application for dealer registration and the Form U4 is completed for the individual pursuing registration as an Agent. Applicants can find these forms in the Uniform Dealer Forms link on our website.
FINRA member firms:
FINRA runs a database known as the Central Registration Depository (CRD) where applicants can locate and electronically submit the applications needed in order to register as a dealer or agent.
A paper Form BD is required when an applicant is using CRD for the first time. Once the dealer has established an account with FINRA, the applicant will need to need to set up an electronic funds transfer between their bank and FINRA (Financial Industry Regulatory Authority). FINRA members are required to submit their Form BD electronically through CRD system. Thereafter, the Form BD can be submitted electronically if the applicant is filing an amendment to update the information on their Form BD. Once the Form BD is submitted, the Registration Division of the Texas State Securities Board will receive notification that an application has been filed electronically.
Form BD is the application that is completed and submitted in order to apply for registration with the Securities and Exchange Commission (SEC), self-regulatory agencies and state jurisdictions as a securities broker-dealer. The Form BD requires that the firm disclose background information, including the names of executives and general partners, successor information, and any current legal proceedings or previous securities violations.
Like the Form BD, the Form U4 requires applicants to disclose different types of information. Under Item 14 in the Form U4, applicants must complete a series of disclosure questions. These disclosure questions focus on several topics, including, but not limited to: criminal history; disciplinary or regulatory actions by state, federal or self-regulatory organizations; customer complaints; civil judicial actions; and bankruptcies. After the applicant completes his or her Form U4, the agent will give the signed form to his or her firm’s department that deals with filing or regulatory compliance. The compliance division of the firm has access to the agent’s Form U4 and can update it if the agent needs to do so.
NON-FINRA member firms:
The Texas State Securities Board does not require that dealers be FINRA member firms. However, submission of the Form BD and the Form U4 are required of all dealer or agent applicants. The dealer will submit the required applications, requisite filing fees and additional documents directly to the Texas State Securities Board.
For more information about registering as a securities dealer or agent, you can review the Dealers Check Sheet for Registration.