1. (a) Securities dealer application requirements. A complete application consists of the following and must be filed in paper form with the Securities Commissioner:

   1. (1) Form BD;
   2. (2) Form U-4 for the designated officer and a Form U-4 for each agent to be registered (officers of a corporation or partners of a partnership shall not be deemed agents solely because of their status as officers or partners);
   3. (3) a copy of articles of incorporation, partnership agreement, articles of association, trust agreement, or other documents which indicate the form of organization, certified by the appropriate jurisdiction or by an officer or partner of the applicant;
   4. (4) assumed name certificate, if applicable. The improper use by an applicant of an assumed name containing "incorporated," "corporation," "associates," "limited," or an abbreviation of one of those words, may be grounds for denying registration of the applicant if such designation is thereby misleading;
   5. (5) a balance sheet prepared in accordance with generally accepted accounting practices reflecting the financial condition of the dealer as of a date not more than 90 days prior to the date of such filing. The balance sheet should be prepared by independent certified public accountants or independent public accountants, or must instead be attested by the sworn notarized statement of the applicant's principal financial officer. If attested by the principal financial officer of the applicant, such officer shall certify as follows: I am the principal financial officer of (name of dealer). The accompanying balance sheet has been prepared under my direction and control and presents fairly its financial position on the dates indicated to the best of my knowledge, belief, and ability. (Signature and Title).
   6. (6) any other information deemed necessary by the Securities Commissioner to determine a dealer's financial responsibility or a dealer's or agent's business repute or qualifications; and
   7. (7) the appropriate registration fee(s).
2. (b) Designated officer registration. Dealers must file a Form U-4 application to register an officer or partner in connection with the registration of the dealer. The officer or partner must be a control person of the dealer. The officer or partner must complete the necessary registration and examination requirements. An applicant may designate as its officer or partner a control person registered in Texas via the Central Registration Depository System maintained by the National Association of Securities Dealers. If the officer or partner resigns or is otherwise removed from his or her position, the firm shall make an application to register another officer or partner within 30 days.
3. (c) Branch office registration and inspection. A request for registration of a branch office of a dealer may be made upon initial application of the dealer or by amendment to a current registration. No sales-related activity may occur in any branch office location until such time as the dealer receives notification from the Securities Commissioner that such location has been approved as a branch office. The request for registration of a branch office may be made in letter form or by the submission of Schedule E of Form BD. The fee for registration of each branch office is $25. Simultaneous with the request for registration of a branch office, a branch office manager must be designated. The manager must satisfy the examination qualifications required of the dealer before the branch office may be registered. A branch office manager is not required to be registered as a NASD principal, but must be registered in Texas as an agent and is responsible for supervision of the activities of the branch office. Within 10 business days from when a branch office manager ceases to be employed or registered in such capacity by the dealer, a new branch office manager, qualified by passage of the appropriate examinations, must be designated. Absent the designation of a new branch manager to the Securities Commissioner within the 10 business day period, the registration of a branch office whose manager ceases to be employed as such by a dealer may be automatically terminated. The branch office registration may be reinstated upon the designation of a qualified branch office manager and payment of the branch office registration fee. Each branch office registered with the Securities Commissioner is subject to unannounced inspections at any time during normal business hours.
4. (d) Withdrawal of a dealer or agent application for registration. If an applicant for registration with the Securities Commissioner as a dealer or agent fails to make any type of response to the most recent written request for information relating to an application that has been pending for six months, the application will be considered withdrawn. This withdrawal will occur automatically if the applicant fails to respond to the most recent written request for information sent by certified mail to the applicant's address as set forth in the application. This certified written request shall inform the applicant that the application will be considered withdrawn if a response to the request for information is not received within 30 days from the date of the certified letter. A copy of this subsection and the most recent written request for information will be included with the certified letter.

5. (e) Central Registration Depository System (CRD).

   1. (1) Whenever the Texas Securities Act or Board rules require the filing of an application with the Securities Commissioner for dealer or agent registration, members of the National Association of Securities Dealers, Inc. (NASD) or applicants for membership in the NASD shall make such filing electronically through the CRD which is jointly operated by the NASD and the North American Securities Administrators Association, Inc. (NASAA). Applicants shall use the applicable uniform form for the submission of the filing in question and shall supplement their electronic filing by filing, in paper form, the items listed in paragraphs (3)-(6) of subsection (a) of this section, directly with the Commissioner.
   2. (2) Uniform forms submitted through the CRD that designate Texas as a jurisdiction in which the filing is to be made are deemed to be filed with the Securities Commissioner and constitute official records of the Board.

Source Note:The provisions of this §115.2 adopted to be effective August 12, 2001, 26 TexReg 5794; amended to be effective November 26, 2001, 26 TexReg 9581; amended to be effective March 6, 2002, 27 TexReg 1475; amended to be effective June 12, 2002, 27 TexReg 4935.