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    Securities Registration Office

    Frequently Asked Questions (FAQs)

    The Department of Banking and Securities (“department”) issues Investment Adviser, Investment Adviser Representatives, Broker-Dealer, and Broker-Dealer Agent licenses.  The definitions of and criteria for obtaining these licenses are set forth at length in the Investment Adviser Self-Inspection Checklist.  A potential applicant may contact the Registration Office for general guidance, but it is the responsibility of the applicant to obtain the proper license(s).  

    The department uses a secure web-based national registration system called the FINRA CRD/IARD (“CRD/IARD”).  Applicants* complete an electronic application for a license through the CRD/IARD. (*Broker-Dealers that are Non-FINRA members submit an application directly to the department.)  Licensing application instructions, links, and forms are available on the department’s website.

    The department reviews the information submitted by the applicant through the CRD/IARD before issuing a license or issuing a denial to the applicant. Once a completed application is received, it may take anywhere between a few days to a few weeks to issue a license depending on the circumstances of the applicant. Applicants may not engage in the securities business until the department issues the proper license.

    Licenses automatically expire on December 31 if the license is not renewed. Licensees complete the renewal process through the CRD/IARD.  If a license expires and the licensee still engages in the activities that require a license, the licensee will be held responsible for the activity that occurred while unlicensed. The department may fine the licensee for the unlicensed activity, even if the license is eventually renewed.

    Registration Renewals

    Investment adviser firms, investment adviser representatives, broker-dealers, notice filers, and registered representatives.

    Registrants who do not renew, will have their registrations terminated effective December 31.

    If your registration terminates you will not be able to do business until the registration is reviewed and approved. For investment advisor firms and investment adviser representatives, this entails a full review of all up to date filings and documents requested during the registration review.

    • The second week of November, the Firm will receive their preliminary statement notice from FINRA, by email.
    • Make sure your email address in CRD/IARD is up to date.
    • You will pull the preliminary statement from the Firm account in CRD/IARD.
      • The statement specifies the amount of money needed to fund the Firm’s renewal account. Even if you plan on terminating an individual or with a particular state (not a full withdrawal) before the end of the year, you MUST keep the full amount of funds required per the original renewal statement in your account, until January; or you will be deemed “Funds Deficient” in all states and will not renew in any state. The Firm should review the annual renewal program letter received from FINRA to view the schedule of statements, sweeps, and CRD shutdown.

    The Firm has both a Flex Funding account and a renewal account. If there is enough money in the Flex Funding account, it will sweep to the renewal account per the dates on the FINRA Renewal Calendar.

    When funding the firm account, the funds do not go into the Firm account immediately, it may take several business days for the funds to be moved where it can be applied to the renewal application. The funds will not be counted until that process is complete. You must have the account funded prior to the system shutdown. Always double check to make sure the funds are in the account.

    Do not wait until the end of the month to fund your account. The system shuts down a few days before December 31.

    CRD helpline: 301-590-6500

    IARD Helpline: 240-386-4848
    www.iard.com
    iard@finra.org

    Or contact Staci Morcom 717-783-4217 smorcom@pa.gov or Vickie Caster 717-783-2250 vcaster@pa.gov

      Balance Sheets

      All financial advisory firms who either have custody or discretion for the entire year or a portion of the year that falls during the firm’s fiscal year end and have the Commonwealth of Pennsylvania as their principal place of business.

      For firms with discretion...

      A balance sheet dated as of the year end of the firm evidencing $10,000 net worth, a signed true and accurate assertion statement and basic footnotes explaining how the elements of the balance sheet are valued and reported.

      For firms with custody...

      An audited balance sheet as of the fiscal year end evidencing $35,000 net worth complete with footnotes and a signed true and accurate assertion statement. A surprise examination needs to be conducted with 120 days of filing the audited financial statements with the Department. This report must state that an accountant has made an examination of the client funds and securities and describes the nature and extent of the examination.

      For new applicants...

      In addition to these items listed above, a bank statement will be requested which corroborates the cash reported on the initial balance sheet. If applicable, a copy of the Surety Bond in place clearly evidencing the amount of the Surety Bond and evidencing that it was in effect as of the date of the balance sheet. A copy of the continuation certificate issued by most underwriters is sufficient.

      If applicable, a copy of the Surety Bond in place clearly evidencing the amount of the Surety Bond and evidencing that it was in effect as of the date of the balance sheet. A copy of the continuation certificate issued by most underwriters is sufficient.

      Yes, firms with discretion and/or custody must still file a financial statement for their fiscal year end even though they may be undergoing an exam concurrently. This requirement is a separate filing from the requests made from the exam and would not fulfill the annual financial statement filing requirement. Firms without discretion and those domiciled outside of Pennsylvania are not required to file financial statements on an annual basis therefore they only need comply with the requests of their examiner. 

      All balance sheets should be submitted for review 120 days following the firm’s fiscal year end.

      All annual balance sheet submissions must be transmitted via the secure DoBS Portal. You will receive a task to submit your annual balance sheet. For firms with a fiscal year end of December 31, you will receive your Portal task on January 7.

      No, any balance sheet submissions mailed to the office will not be accepted. The balance sheet must be uploaded to the secure DoBS Portal. Additionally, balance sheets emailed or faxed to department staff will not be accepted.

      No. The complexities and nuances for each firm are individual and varied. The department can answer questions about the deadline for filing and the basic items required for compliance. If you should need further assistance, you should contact a professional services firm.

      DoBS does not make recommendations regarding the suitability of accounting software for any IA firm. Firms must determine their accounting needs as part of their application process. The department does not require the use of any particular software package.

        For any further questions pertaining to submission of the balance sheet, contact Chris Yother (717-705-9328; cyother@pa.gov) or Cambria Baish at (717-783-4229; cbaish@pa.gov).

        Registration Office Forms and Applications

        Broker Dealer

        BD Registration Packet - FINRA (PDF)
        FINRA Members Only 

        BD Registration Packet - Non-FINRA (PDF)
        Non-FINRA Members Only 

        Form BD
        BD Instructions

        Form BD-W
        BDW Instructions

        Investment Advisor (IA)

        ADV Form
        Instructions and Forms

        Investment Adviser Registration Packet​​​ (PDF)
        Instructions and Filing Requirements

        ADV-W
        ADV- W Instructions

        IARD State Registrant Entitlement Packet
        Entitlement Instructions

        IARD Firm's User Manual
        Quick Reference Guide

        IA Representative/Broker Dealer Agent 

        FINRA Registration Forms (Forms U4, U5, U6, BD and BR)
        FINRA is responsible for the Central Registration Depository (CRD) program, which supports the licensing and registration filing requirements of the U.S. securities industry and its regulators. The Uniform Registration Forms are periodically revised to incorporate various changes to the forms. The most recent versions of the forms, instructions and other resources are available here. Enroll for an exam. 

        IA Notice Filers

        Investment Adviser Notice Filing Packet (PDF)
        Notice Filing Instructions

        Form ADV
        Instructions and Forms

        Form ADV-W
        ADV-W Instructions

        IARD State Registrant Entitlement Packet
        Entitlement Instructions

        IARD Firm's User Manual
        Quick Reference Guide