Summary of Nebraska Broker-Dealer Registration Requirements Nebraska Department of Banking and Finance Commerce Court, Suite 400 1230 O Street, PO Box 95006 Lincoln, NE 68509-5006 402-471-2171 http://www.ndbf.org/ Bureau of Securities 402-471-3445 The following information is provided to assist in preparing an application for initial broker-dealer registration in Nebraska: 1. BROKER-DEALER APPLICATION REQUIREMENTS A broker-dealer application for FINRA firms shall consist of the following documents: (a) A COMPLETE and CURRENT FORM BD; (b) An executed “AFFIDAVIT OF BROKER-DEALER ACTIVITY IN NEBRASKA” (available at http://www.ndbf.org/forms/bdaffidavit.pdf); and: (c) A CURRENT AUDITED FINANCIAL STATEMENT. If the financial statement is more than 90 days old, the most recent FOCUS REPORT should also be filed; (d) A $250.00 application fee (see Section 7 for information on payment of fees). A broker-dealer application for non-FINRA firms shall consist of all of the above documents with original signatures and those additional documents listed below: (e) A copy of the broker-dealer’s ARTICLES OF INCORPORATION, articles of partnership, or LLC membership agreement that shows the current legal name of the applicant; (f) A copy of the broker-dealer’s CORPORATE RESOLUTION. Entities that are organized in a form other than a corporation, such as a partnership or LLC, need not file a CORPORATE RESOLUTION. (form available at http://www.ndbf.org/forms/bdcorpres.pdf); (g) A cover letter containing the name and CRD number of the individual who will serve as the designated principal in Nebraska. The principal must have taken and passed the Series 63 or 66 and the Series 24, 26, or 39 examinations and should be registered as an agent in Nebraska; and (h) A SURETY BOND in the amount of $25,000 or maintain a net capital of $25,000 (form available at http://www.ndbf.org/forms/secbond.pdf). Except as otherwise specified, all documents must be submitted to the Department. 2. CLEARING FIRMS If a broker-dealer refers or introduces Nebraska customers to a clearing firm, the clearing firm must be registered as a broker-dealer in Nebraska. 3. FOREIGN CORPORATIONS In certain instances, a broker-dealer may be required to register as a foreign corporation in Nebraska. If you have questions about requirements for registering as a foreign corporation in Nebraska, contact the Secretary of State’s office at (402) 471-4079 (website address is http://www.sos.state.ne.us/). Page 1 of 2 Rev. 11/2007 American LegalNet, Inc. www.FormsWorkFlow.com NEBRASKA BROKER-DEALER APPLICATION REQUIREMENTS – Continued 4. AMENDMENTS TO FORM BD All amendments to Form BD are filed pursuant to the directions on the form. FINRA member firms shall file directly through Web CRD and need not be submitted to the Department. Non-FINRA member firms must submit hard copies of all amendments to the Department. 5. AGENTS A broker-dealer is ultimately responsible for the actions of its agents and employees and must maintain adequate supervision and control over its representatives. Agents of a broker-dealer may not advertise themselves using a DBA, or under any other name, as being a broker-dealer or investment adviser, unless that entity is properly registered. See 48 NAC 6 in the Rules of the Department for additional information. (http://www.ndbf.org/legal/title48.shtml). All FINRA member firms requesting registration or termination of agents in Nebraska should file the appropriate Form U-4/U-5 through the Web CRD system. Non-FINRA member firms must submit hard copies of the agent application or termination forms to the Department. 6. ANNUAL RENEWALS All broker-dealer and agent registrations expire annually on December 31. The Department will send a renewal notice in mid-October to non-FINRA broker-dealers specifying which documents will be required for renewal. Renewal fees are $250.00 for a broker-dealer and $40.00 per agent. Please refer to 48 NAC 4, Section 003 of the Rules of the Department for additional information regarding annual renewals (http://www.ndbf.org/legal/title48.shtml). 7. PAYMENT OF FEES Application and renewal fees for FINRA member firms and their agents must be paid through Web CRD. Fees for non-FINRA member firms and their agents should be paid directly to the Department, by check payable to the “Nebraska Department of Banking and Finance.” If you have additional questions concerning Nebraska broker-dealer license application requirements, feel free to call (402) 471-3445 and ask for Securities Analyst Jerry McFarland, or contact our Department via email to jerry.mcfarland@bkg.ne.gov. Please direct any questions concerning broker-dealer agent registration requirements to Securities Analyst, Rodney Griess (rodney.griess@bkg.ne.gov) Page 2 of 2 Rev. 11/2007 American LegalNet, Inc. www.FormsWorkFlow.com