Broker-Dealers: FAQs

Our Most Frequently Asked Questions

  1. Are annual audited financial statements required?
  2. Is there a De Minimus rule for broker-dealers?
  3. If a firm has no place of business in Mississippi, does an individual have to be registered?
  4. Does Mississippi require that a principal be registered?
  5. Does Mississippi allow an agent to be registered with more than one firm?
  6. Where do you submit your payment for broker-dealers and their representatives?
  7. Are there any exams required for broker-dealer agents?

FAQ Answers

  1. Are annual audited financial statements required?

    Answer:
    No, as long as the firm i​s a member of FINRA, financial statements are no longer required to be submitted on an annual basis. If the Division requires a copy of your financial statements it will be requested at that time.

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  2. Is there a De Minimus rule for broker-dealers?

    Answer:
    Yes, pursuant to §75-71-401(b). Generally broker-dealers with no place of business in this state are allowed up to three (3) customers in this state during the previous twelve (12) months if the broker-dealer is registered under the securities of act of the state in which the broker-dealer has its principal place of business. For additional exclusions please see Miss. Code Ann. §75-71-401 subsections (b) and (d).

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  3. If a firm has no place of business in Mississippi, does an individual have to be registered?

    Answer:
    Yes, unless one of the exclusions mentioned above apply, if a broker-dealer is required to be registered in Mississippi all agents acting on behalf of the broker-dealer must be registered prior to conducting business in Mississippi.

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  4. Does Mississippi require that a principal be registered?

    Answer:
    No, unless the principal will be effecting trades.

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  5. Does Mississippi allow an agent to be registered with more than one firm?

    Answer:
    Yes

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  6. Where do you submit your payment for broker-dealers and their representatives?

    Answer:
    All payments are submitted electronically through FINRA’s CRD system.

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  7. Are there any exams required for broker-dealer agents?

    Answer:
    Generally, each broker-dealer principal and each broker-dealer agent applicant must satisfy two (2) examination requirements to obtain a​ license:

    1. An examination on state securities law which will be satisfied by passing the Uniform Securities Agent State Law Examination (USASLE) (S-63) or the Uniform Combined State Law Examination (UCSLE) (S-66) administered by FINRA; and
    2. An e​xamination of general or limited knowledge of securities principles, which will be satisfied by passing the appropriate examination required by FINRA for the activity in which applicant will be engaged.
      Applicants successfu​lly completing a limited knowledge examination as provided under
      533(B)(2) will be eligible only for registration to effect transactions in those securities to which the limited examination relates.

    Please see the Mississippi Securities Act Rules (529) for additional information regarding examination requirements for broker-dealer principals and agents. ​​​​​​

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