Broker-Dealer And Securities Registration Information Sheet

Revised 7/22

Website Address:
www.ag.ny.gov
Investor Protection Bureau
28 Liberty St, 15th Floor
New York, NY 10005
(212) 416-8222
IPBreg@ag.ny.gov

Statutory Authority General Business Law (“GBL”),
Article 23-A, §359-e and § 359-f and
Supplementing Department Regulations
New York Codes, Rules and Regulations
Title 13 Part 10 Brokers, Dealers and Salespersons

 

   I.   FILING FEES

      A.   Issuer or Broker-Dealer Statement 
            •   $300.00 for total offerings $500,000 or less, or
            •   $1,200.00 for total offerings over $500,000.

      B.   Salesperson Statement:   
           •   $150

Any fee paid by check shall be made payable to New York State Department of  Law and shall reference the filer’s name and file number if one has been assigned.   Fees paid for FINRA members or in connection with EFD or Blue Express filings are paid through those respective systems.

IPB will now accept electronic payments through its e-Payment portal. You must include the receipt you receive from the e-Payment system (on OAG letterhead) with your submission or it may be returned.  Payments due to the Department of State cannot be made through this portal.

   II.   ISSUERS OF SECURITIES

      A.   Issuers of securities not defined as covered securities include:

            1.   Regulation A, Tier 1 Offering, or

            2.   Rule 504, or

            3.   Other non-covered public offerings.

   Such issuers shall register as Broker-Dealers by filing:
                  o   M-11 Issuer Statement,
                  o   Offering literature (if such documents were created for the
                       offering),
                  o   State Notice and Further State Notice ($75.00 fee each) with the
                       Department of State (“DOS”), and
                  o   Consent to Service of Process Form U-2 for non-resident issuer
                       (total fee $35.00).  File with DOS*

      B.   Issuers of Covered Securities:

            1.   Federal Covered Regulation D Securities Dealers.  Issuers of Rule
                  506 Offering, Section 18(b)(4)(F) of the Securities Act of 1933, shall
                  file Form D through NASAA’s EFD system at https://www.efdnasaa.org/.

            2.   Federal Tier 2 Securities Dealers.  Issuers offering under section
                  18(b)(3) or (b)(4)(D)(ii) of the Securities Act of 1933 shall file

                        a. File Uniform-Reg-A-Tier-2-Notice-Filing-Form with the
                            Department of Law; and

                        b. Consent to Service of Process Form U-2 for non-resident
                            issuer (total fee $35.00) with DOS*

            3.   Open End Investment companies shall notice fie as Broker-Dealers
                  by filing:

                        a. File Form NF directly with the State (Total fee $1,200.00) to
                            New York State Department of Law. (Total fee $1,200.00)

                        b. Consent to Service of Process Form U-2 for non-resident
                            issuer (total fee $35.00) with DOS*

Alternatively, issuers of UITs may file the Form NF through NASAA’s EFD system at https://www.efdnasaa.org/, and pay the appropriate fee. Filing through EFD will eliminate the Form U-2 filing requirement. 

The Department of Law also accepts Form NF filings through Blue Express.  Such filings are submitted to the Department on behalf of mutual fund and UIT issuers by service providers.  Mutual fund Form NF EFD filing may be implemented in the future.

      C.   If the issue is being sold by a registered Broker-Dealer on a Best Efforts
            basis, the issuer must file a broker-dealer statement as outlined in A-C
            above.

      D.   If the issue is being sold by a registered Broker-Dealer on a Firm
            Commitment basis, only a Further State Notice need be filed by either
            the issuer or the underwriter.  Such filing shall be made directly to the
            Department of State.

      E.   Offering literature must be included with the Form M-11.  There is no NY
             requirement for any prospectus or offering literature to be specifically
             prepared.  If there is none, none need be submitted.  However, you are
             required to refer to the absence of any offering literature in your cover
             letter.  There are no legend requirements.

      F.   Except for sales of covered securities, no offers or sales of securities
            may be made until the registration statement is accepted for filing.

      i. Pursuant to GBL § 359-e(9), the issuer statement is filed when received, if
         complete.

      ii. The Department of Law will notify you or return the filing if it is incomplete.

      iii. The fee receipt including you state file number, or EFDID, is the only
           tangible evidence of registration that you will receive.

            1. Keep this for renewal purposes.

            2. Refer to it and your file number on any correspondence with the
                Department of Law.

      iv. The Issuer Statement must be renewed every four years, if securities are
           to be issued.

      v. The renewal date and file number appear on the fee receipt received after
          the application is fully processed.

      G.   The Issuer statement is good for four years.  During that time additional
             securities issues require only the filing of a Further State Notice. 
             Properly notice filed covered securities issuers are not required to file
             Further State Notice. Instead, such issuers must amend their Form D,
             Form NF or Uniform-Reg-A-Tier-2-Notice-Filing-Form.

      H.   Officers, directors, principals or partners may offer and sell securities
            within or from the State of New York when they are listed on the Form
            M-11 or Form D.  They do not have to register separately as
            salespersons. There are no exam requirements for officers, directors,
            principals or partners of Broker-Dealers in New York if not applying for
            individual salesperson registration.

      I.   Issuer agents not covered by section H above are required to register as
           salespersons. See Section IV.  There are no exemptions for
           salespersons.

   III.   EXEMPTIONS FROM REGISTRATION OR FILING

      A.   Issuers seeking an exemption shall file pursuant to GBL § 359f(2)
            a. (seasoned securities with no default), b. (listed securities and those
            senior thereto, c. (securities issued by the U.S. or Foreign government,
            utility company, certain non-profits, state banks, or that constitute
            securities of a corporation supervised by [], short term negotiable notes,
            whole bonds and mortgages, sold at judicial, executor, bankruptcy sale
            or liquidated as collateral under a defaulted loan, negotiable documents
            of title or foreign currency orders), d. (limited offerings 40 or less
            persons), or e. (employee stock purchase plans). See GBL
            § 359-f(2) for full definitions.

            1.   Only Issuers qualify to file for an exemption.

            2.   GBL § 359f(2)d applies only to securities offered to fewer than 41
                  offerees (not purchasers) both within and without the State of
                  New York.

      B.   Filing Requirements for Exemption Application

            1.   Verified petition or affidavit as prescribed by the Issuer Exemption
                  Instruction Sheet ($300.00 fee).  The fee is made payable to the
                  New York State Department of Law.

            2.   RI-1 forms for exemption applications made pursuant to GBL §
                  359f(2)d (no fee).

            3.   Further State Notice unless exempt under GBL § 359f(1) ($75.00
                  fee).*  If you are filing the Further State Notice, there is no fee for the
                  State Notice portion of the form under the GBL § 359(f)(2)
                  exemption application process. A statement that exemption
                  application is being filed with the Attorney General’s Office must
                  be in the State Notice portion.

            4.   Consent to Service of Process or U-2 for non-resident issuers (total
                  fee $35.00) with DOS.*

      C.   Exemption applications under GBL § 359-f(2) are not approved upon
             receipt.  Instead, applicants must await review and approval by the
             Department of Law.

            1.   No offers or sales may be made within or from the State of New York
                  unless and until the application for exemption has been approved.

            2.   Upon completion of review you will receive a letter of notification.

            3.   Exemptions are limited to facts of the application.  Each additional
                  offering of securities by the issuer requires a new application for
                  exemption or registration as described above. Changes to the
                  issuance will void the Exemption.  For example, a change in name
                  of issuer would require a new exemption application and fee.

      D.   Limited Exemption.  The grant of an exemption under GBL § 359-f(2)
            only exempts the issuer from filing the M-11 and State Notice but
            not the Further State Notice.  Even those exempt from filing a
            broker-dealer statement must file the Further State Notice
            with DOS unless also exempt under GBL § 359-f(1).

   IV.   BROKER-DEALERS (Excluding Issuers)

      A.   Non FINRA Broker-Dealers shall file:

            1.   Form M-1 ($1,200.00 fee for 4 years). The fee is made payable to
                  the New York State Department of Law

            2.   State Notice ($75.00 fee).*

            3.   Consent to Service of Process or U-2 for non-resident issuers or
                  brokerage firms (total fee $35.00).*

            4.   Latest financial statement.

            5.   Renewal: non-FINRA Broker-Dealer Registration is renewed four
                  years after the effective date on the fee receipt
.
            6.   If you are located somewhere other than NY.  Your Firm must be
                  registered in your home state in order for the application review
                  process to proceed.

            7.   No offers or sales of securities may be made until the registration
                  statement is accepted for filing.  The Department of Law will notify
                  you or return the filing if it is incomplete. Once OAG determines
                  your filing is complete, you will receive a permit receipt as proof
                  that your submission has been accepted for filing.

      B.   FINRA Broker-Dealers
            1.    Must register by filing Form BD through the Central
                   Registration Depository (CRD) online portal. 
                   All correspondence to FINRA should be sent to P.O. Box
                   9401, Gaithersburg, MD 20898-9401.  All pertinent
                   information is received through the CRD by the New York
                   State Department of Law.

      C.   No offers or sales can take place until the Broker-Dealer Statement
             is accepted for filing by the Department of Law.  The firm must be
             FINRA and SEC approved. If the firm’s principal place of business
             is not a New York address, the firm must be approved in their home
             state.

            1.   Applications will not be accepted if they contain deficiencies.  See
                  13 NYCRR 10.2(h).

            2.   Application status will be updated through the CRD system.

            3.   FINRA Member Broker-Dealers renew every year at year end
                  through the CRD.

      D.   Fingerprinting Requirements for Broker-Dealers and Salespersons.
            (GBL § 359-e (12) – (12-b)).  Generally, fingerprinting is required
            for all persons, including partners, officers, directors and salesperson
            employed by a broker or dealer required to register with the Department
            of Law, except for personnel of securities issuers.  See GBL § 359-e (12)
            – (12-b) for specific requirements and exclusions.

            4.   If fingerprints are already on file with FINRA or the SEC, or any of the
                  major exchanges they need not be filed with NY.

            5.   If fingerprints are not already on file, visit www.identogo.com, select
                  “Digital Fingerprinting” enter service code “1545Y8”.

      E.   Officers, directors, principals or partners may offer and sell securities
            within or from the State of New York when they are listed on the
            Form M-1 or BD after such form is complete and filed.  They do
            not have to register separately as salespersons.  There are no test
            requirements for officers, directors, principals or partners of
            Broker-Dealers in New York.

      F.   If you are located somewhere other than NY.  Your Firm must be
            registered in your home state in order for the application review
            process to proceed.

   V.   SALESPERSONS

      A.   Salespersons of Non-FINRA member firms must:

            1.   File the forms M-2 ($150.00 fee) for 4 years, or M-4 for amendments
                  with the Department of Law.  The fee is made payable to the New
                  York State Department of Law.

            2.   Amend their registration with a Form M-4 ($30.00 fee) for the
                  following changes:  Address, Name, Employment, Injunctions
                  of Disciplinary Proceedings.

            3.   Pass the Series 63 Uniform Securities Agent State Law Exam or
                  Series 66 Uniform Combined State Law Exam.
                        a.  1981-1983 CRD implementation exemption. if salesperson
                             was continuously registered as an officer, director, principal
                             or partner, or a salesperson in New York between the dates
                             of September 26, 1981 and September 26, 1983, that person
                             may be exempt from the exam.
                        b.  No other exam waivers for salespersons.
                        c.  A two year or more gap in registration will require re-testing.
                        d.  For information on signing up for these exams, please visit:
                https://www.finra.org/registration-exams-ce/qualification-exams

            4.   For further information consult Part 10 to Title 13 NYCRR Brokers,
                  Dealers and Salespersons.

            5.   Officers, directors, principals or partners may offer and sell securities
                  within or from the State of New York when they are listed on the
                  Form M-11 or Form D.  They do not have to register separately
                  as salespersons. There are no exam requirements for officers,
                  directors, principals or partners of Broker-Dealers in New York
                  if not applying for individual salesperson registration.

            6.   Issuer agents not covered by item 5 directly above are required to
                  register as salespersons. There are no exemptions for salespersons.

      B.   Salespersons of FINRA member firms:

            1.   Must register through the Central Registration Depository (CRD),
                  online portal. All pertinent information is received through the
                  CRD by the New York State Department of Law.

            2.   Pass the Series 63 Uniform Securities Agent State Law Exam
                  or Series 66 Uniform Combined State Law Exam.

                        a. 1981-1983 CRD implementation exemption. if salesperson
                             was continuously registered as an officer, director, principal or
                             partner, or a salesperson in New York between the dates of
                             September 26, 1981 and September 26, 1983, that person
                             may be exempt from the exam.
                        b. No other exam waivers for salespersons.
                        c. A two year or more gap in registration will require re-testing.
                        d. For information on signing up for these exams, please visit:
                https://www.finra.org/registration-exams-ce/qualification-exams.
                        e. Status will be updated through the CRD system.
                        f. Individual salespersons are renewed yearly by their firm.

            3. For further information consult Part 10 to Title 13 NYCRR Brokers,
                Dealers and Salespersons.

   VI.   AMENDING THE REGISTRATION STATEMENT

      A.   The Supplemental Broker-Dealer Statement (M-3) must be filed within
            30 days, by Issuers and Non FINRA Broker-Dealers when the following
            changes occur:  (Filing fee $30.00)  The fee is made payable to the
            New York State Department of Law.
            1.   Address of company.

            2.   Name of company.

            3.   Officers, directors, or principals added or terminated.

            4.   Addition or subtraction of salespersons for non-FINRA member firms.

            5.   Termination of dealership.

            6.   Report of disciplinary proceedings.

      B.   Changes occurring within 30 days of each other may be filed on one M-3
             with one $30.00 fee.

      C.   FINRA Member Broker-Dealers amend directly and solely through the
            CRD on an amended form BD (no fee).

   VII.   THEATRICAL FILINGS

      A.   Issuers of Theatrical securities

           1.   File Form 99 without a Fee directly with the Office.  Filings may be
                 emailed to IPBTHEATRICALS@AG.NY.GOV; or
           2.   Issuers qualifying as Federal Covered Regulation D Securities
                 Dealers may file Form D through EFD.  However, such filer will
                 have to pay the full notice filing fee through EFD

   VIII.   OBTAINING FORMS

      A.   Visit www.ag.ny.gov/bureau/investor-protection-bureau and 
            https://ag.ny.gov/forms
      B.   Call. (212) 416-8222
      C.   Write. Registration Section, New York State Department of Law,
            Investor Protection Bureau, 28 Liberty Street, 15th Floor,
            New York, NY 10005.

   IX.   REAL ESTATE AND INTRASTATE FILINGS

RECENT CHANGES TO 13 NYCRR 10 GENERALLY DO NOT AFFECT REAL ESTATE FINANCE BUREAU (REF) FILINGS.  PLEASE CONTACT REF REGARDING REAL ESTATE BROKER-DEALER AND INTRASTATE FILINGS.

      •   Issuers of Real Estate or Mortgage securities (including corporate stock, bonds and debentures if the corporation is in a real estate business) must also comply with GBL   §352-e of the General Business Law.  Such issuers must submit a filing and obtain an exemption letter upon written application from the Bureau of Real Estate Financing.

      •   Issuers making intrastate (only in New York) offerings of securities (where the business is not primarily real estate) must comply with GBL § 359ff of the General Business Law by filing a prospectus and obtaining a filing letter or by obtaining an exemption letter on written application pursuant to the Intrastate Financing Act Regulations, from the Bureau of Real Estate Financing.

      •   Appropriate instruction and forms for an offering of real estate or mortgage securities are:  GBL § 352-g Exemption Instructions; Regulation D Exemption Instruction; Part 16, Syndication Regulation; copies of Form RI 1; the Further State Notice; and the   Designation Form.  Appropriate instructions and forms for an intrastate offering of securities are:  The Intrastate Financing Act Regulations; Form Intrastate 1; Form M-11; and the State Notice and Further State Notice Form.

      •   Information, forms and instruction for the above offerings can be obtained by calling (212) 416-8121 or 8122; or by visiting https://ag.ny.gov/bureau/real-estate-finance-bureau

*The State Notice and Further State Notice and the accompanying fees must be filed with NYS Department of State, State Records, One Commerce Plaza, 99 Washington Avenue, Albany, New York 12231-0001.  

The Consent to Service of Process or U2 and the accompanying must be filed with NYS Department of State, Division of Corporations, One Commerce Plaza, 99 Washington Avenue, Suite 600, Albany, New York 12231.

For information on the Dec. 2, 2020 revisions to 13 NYCRR Part 10, please visit https://ag.ny.gov/ipb-rule-change.