DIVISION OF TRADING AND MARKETS RELEASES BROKER-DEALER GUIDE
The SEC’s Division of Trading and Markets released an updated “Guide to Broker-Dealer Regulation.” The Guide is an overview of whether a firm needs to register as a broker-dealer, how to register, conduct standards, and the net capital rules. The Guide includes a discussion of the definitions of “broker,” “dealer,” and “associated person.” The Guide also addresses sales of securities issued under Regulation D as well as the “issuer exemption.” The Guide gives an overview of conduct rules including antifraud, trading, Reg NMS, and privacy.
Our take: The Guide provides a good overview for those considering broker-dealer registration. It summarizes the essential requirements of registration and compliance.
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