So lets say if a business has no office in the state and has a pre existing relationship with a client who is (temporarily) visiting a another state but is a retail client do they need to be registered with state ?
Probably not, because of the snowbird/vacation rule.
Snowbird/vacation rule
If an adviser has no place of business in a state and only engages existing clients that are temporarily in that state (non-resident), no registration is required.
This rule applies to broker-dealers and investment advisers, but when you’re asking/answering a question like this, it’s important to note which you’re dealing with since the rules/requirements can differ!
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Thank you for answering my question but isn’t according to BD if a retail client is visiting a another state temporary they don’t need to register with the state
Yes, that’s right: NO registration is required.
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What does Civil litigation involving security mean ?
It basically just means that there was some court case regarding it.
Justin I just had a quick question. Justin if a agent is just operate in one state are they still subject to registration with SEC
Agents file form U-4 with the state administrator. They don’t directly register with the SEC, whether or not they operate in multiple states.
is It same for broker dealers as well ?If I am right are they required to be registered with the SEC and state administration both ?
The rules are stricter for BDs; they register with the SEC and the states.
Here’s the chapter where we cover this: