FREQUENTLY ASKED QUESTIONS
For Non-FINRA Member Firms
What are the minimum competency standards to be a designated principal in Ohio? (What tests are required?)
Ohio Administrative Code Section 1301:6-3-15(B) states the requirements of a designated principal. A designated principal must have either been (1) continuously licensed as a dealer of securities by the Division since May 1, 1991; or (2) achieved a passing score on one of the following examinations administered by the Financial Industry Regulatory Authority;
(a) Registered options principal, series 4,
(b) General securities principal, series 24,
(c) Investment company and variable contracts products principal, series 26,
(d) Direct participation programs principal, series 39,
(e) Municipal securities principal, series 53, or
(f) “Uniform Combined State Law Exam,” series 66.
Is a Non-FINRA member firm required to file audited financial statements annually?
Yes, audited financial statements must be filed with the Division within 90 days of the firm’s fiscal year end.
Is there a de-minimus exemption from registration as a dealer in Ohio?
There is no de-minimus exemption from registration as a dealer in Ohio, regardless of type of client (i.e retail vs. institutional). However, there are a limited number of exceptions from registration as a dealer in Ohio. The exceptions can be found in Ohio Revised Code Section 1707.14.
What, if anything, does the State of Ohio require from a dealer wanting to be licensed in Ohio, other than a Form BD being filed with the Division?
To register in Ohio, dealers need to file an Affidavit of No Prior Sales, audited financial statements, a separate letter stating the name and position of the designated principal, a Form U-4 for the designated principal, and fee filed with the Division, in addition to the filing of Form BD.
We are an Ohio registered BD and are changing our name. What is required to be filed with the Division?
All changes made to the Form BD must be submitted to the Division.
Will I get something official from the Division that shows that I am licensed?
Yes, once the firm is licensed by Ohio you will receive a physical license for the firm and your designated principal.
I have filed an application for one of my representatives. How long will it take until I see an approved status?
Applications which have no disclosure are processed and approved each business day. If an applicant has disclosure, whether it is classified as current or archived, will usually take longer to process as we have to review the disclosures and possibly request additional information.