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#FFFFFF General Broker-Dealer Firms and Sales Reps Licensing InformationIn order to transact business as broker-dealer firms or sales reps in the State of Colorado, a person must be licensed or exempt from licensing under Section 11-51-402, C.R.S. Who needs to be licensed?
With whom do BD Firms and sales reps have to become licensed?
Central Registration Depository (CRD) Information
All Colorado forms and fees. A FINRA BD Firm seeking to license in the State of Colorado should take the following steps to file a broker-dealer application:
Once the Amended Form BD is filed, the application will be sent to the "Colorado No Status CRD Queue." This queue is reviewed frequently. Once you submit an application for consideration, it will be reviewed, and the firm will be notified by a member of the Division staff if it is necessary to provide any information to supplement the Amended Form BD. Additional information may be requested if there are questions regarding disclosures. The State of Colorado does not require the firm to file any state-specific forms as part of the licensing process. A BD Firm seeking to license sales reps to represent it in the State of Colorado should take the following steps to file a sales rep application for each person:
A person applying for a license as a broker-dealer in Colorado that is not registered or registering under the Federal Securities Exchange Act of 1934 ("the 34 Act") will send the application and the amendments to the application directly to the Division. Mortgage broker-dealers whose business involves raising money from individual investors, and is not limited exclusively to placing mortgage loans with institutional investors are subject to the broker-dealer licensing requirements under the state securities laws. Application materials and filing fees must be sent to: Attn: Annastasia Valencia
NOTE: A mortgage broker-dealer whose business is limited exclusively to effecting transactions with financial institutions [as defined in section 11-51-201(6), C.R.S.] is exempt from the licensing requirements of section 11-51-401(1), C.R.S. Financial or institutional investors include depository institutions, insurance companies, investment companies, business development companies, and employee pension, profit-sharing, or benefit plans. A complete list of entities that qualify as financial and institutional investors can be found in the statute. To be deemed qualified, an applicant for a mortgage sales rep license will have passed the Series 63 Examination. An applicant may enroll for and schedule to take the Series 63 Examination by contacting FINRA. In addition to passing the Series 63 Examination, an applicant for a license as a sales representative for either a state-licensed broker-dealer and whose securities business is limited solely to the offer and sale of direct participation investments involving real estate-related securities or an issuer whose business is equally limited shall successfully complete the Direct Participation Program Representative Examination (Series 22) or the Direct Participation Principal Examination (Series 39) administered through FINRA. These examination requirements may be satisfied upon proof that the respective examinations were successfully completed with the two (2) year period immediately preceding the date of the application for licensing. Please consult the Colorado Securities Act and the Colorado Securities Rules for additional information regarding all of the requirements that must be met to become licensed as a mortgage broker-dealer and/or a mortgage sales representative in Colorado. You may contact the Division of Securities at (303) 894-2320 if you have additional questions.
NOTE: The broker-dealer and sales representative pages have been created to provide you with the responses to questions frequently addressed to Licensing Staff in regards to the licensing of broker-dealers and sales representatives in the State of Colorado. It is impossible to address all licensing questions; therefore, the reader is invited to review the Colorado Securities Act, the Colorado Securities Rules (Code of Colorado Regulations at 3 CCR 704-1), or contact a member of the staff for additional information at (303) 894-2320. Which of the following is a non exempt security under uniform state law?Which of the following is a non-exempt security under Uniform State Law? Corporate bonds offered to 5 or fewer investors would qualify as an exempt transaction; not as an exempt security.
Which of the following persons is defined as an adviser in the State that is exempt from registration in the State?An investment adviser is exempted from registering in a State if the firm has no place of business in the State and has no more than: 5 clients in the State in the preceding 12 month period. A Federal Covered Adviser discovers a material error in its Form ADV.
Which of the following are defined as an agent under the Uniform Securities Act an individual who represents?(2) "Agent" means an individual, other than a broker- dealer, who represents a broker-dealer in effecting or attempting to effect purchases or sales of securities, or represents an issuer in effecting or attempting to effect purchases or sales of the issuer's securities.
Which of the following is are defined as a brokerUnder the Uniform Securities Act, a "broker-dealer" is defined as a person that engages in the business of effecting securities transactions for the account of others; or a person that engages in the trading of securities for its own account.
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