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In order to transact business as a broker-dealer or sales representative in the State of Colorado, a person must be licensed or exempt from licensing under Section 11-51-402, C.R.S.
A FINRA broker-dealer seeking to license in the State of Colorado should take the following steps to file a broker-dealer application:
A broker-dealer seeking to license sales representatives to represent it in the State of Colorado should take the following steps to file a sales representative application for each person:
A person applying for a license as a broker-dealer in Colorado that is not registered or registering under the Federal Securities Exchange Act of 1934 ("the 34 Act") will send the application and the amendments to the application directly to the Division.
Mortgage broker-dealers whose business involves raising money from individual investors, and is not limited exclusively to placing mortgage loans with institutional investors are subject to the broker-dealer licensing requirements under the state securities laws.
Application materials and filing fees must be sent to:
Persons seeking to be licensed as mortgage broker-dealers and mortgage sales representatives will file application materials directly with the Division:
See Colorado Rule 51-4.3 for additional information on submitting an application for a sales representative license.
To be deemed qualified, an applicant for a mortgage sales representative license will have passed the Series 63 Examination. An applicant may apply to take the Series 63 Examination by filing the Form U-10 directly with FINRA.
NOTE: Form U-10 and associated fees should be submitted to FINRA and not to the Colorado Division of Securities.
In addition to passing the Series 63 Examination, an applicant for a license as a sales representative for either a state licensed broker-dealer and whose securities business is limited solely to the offer and sale of direct participation investments involving real estate related securities or an issuer whose business is equally limited, shall successfully complete the Direct Participation Program Representative Examination (Series 22) or the Direct Participation Principal Examination (Series 39) administered through FINRA.
These examination requirements may be satisfied upon proof that the respective examinations were successfully completed with the two (2) year period immediately preceding the date of the application for licensing.
Mortgage broker-dealers and mortgage sales representatives have additional requirements that must be met; you may contact the Division of Securities at (303) 894-2320 if you have additional questions.
In order to take a FINRA examination, you must be associated with or employed by a FINRA member firm, unless you wish to take the Series 63, 64, or 66 Examinations. If you want to take the Series 63, 64, or 66 Examination you may may register to take the required examination by submitting a Form U-10 to FINRA online.
No. There is no charge for transferring licenses from one licensed entity to another licensed entity in a Mass Transfer.
The examinations you have passed meet the requirements for sales representative licensure in the State of Colorado. Generally, as long as your license remains active, you will not need to retake the examinations. However, if your registration becomes inactive for a period of two years or longer, you may need to retake the examinations to become licensed with FINRA. Under certain circumstances you may qualify for a FINRA Examination Waiver.
Contact FINRA for information regarding these types of waivers. You will find information about waivers pursuant to FINRA Rule 9600 Series on the FINRA Waiver Guidelines page.
Yes. Broker-dealers and sales representatives must renew annually. Additionally, there is a continuing obligation to update information throughout the year if a change occurs in the information furnished on the original application. The annual renewal program begins in the fourth quarter each year and is administered by FINRA.
Yes. Mortgage broker-dealers and mortgage sales representatives must renew annually. Additionally, there is a continuing obligation to update information throughout the year if a change occurs in the information furnished on the original application. Payment of annual fees are due at year-end. A Division staff member will contact the firm for payment in November or December.
No. The Colorado Securities Act and the Colorado Securities Rules do not require representatives of a broker-dealer to file annual audited financial statements or FOCUS Reports directly with the Division.
Yes. The Colorado Securities Act allows a person to act as an investment adviser representative and a sales representative. See Section 11-51-406(4)(b), C.R.S.
Every licensed broker-dealer and every licensed sales representative is required to file Form BD amendments or Form U-4 amendments to correct any information on applications that is or has become innaccurate in any material respect. Amendments made by FINRA broker-dealers and their sales representatives shall be filed with the Central Registration Depository (CRD). Amendments made by mortgage broker-dealers should be submitted directly to the Division.
Every licensed sales representative is required to file Form U-4 amendments to correct any information on applications that is or has become inaccurate in any material respect. Amendments made by sales representatives shall be filed with the Central Registration Depository (CRD). Amendments made by mortgage sales representatives should be submitted directly to the Division.
NOTE: The broker-dealer and sales representative pages have been created to provide you with the responses to questions frequently addressed to Licensing Staff in regards to the licensing of broker-dealers and sales representatives in the State of Colorado.
It is impossible to address all licensing questions; thereofre, the reader is invited to review the Colorado Securities Act, the Colorado Securities Rules (Code of Colorado Regulations at 3 CCR 704-1), or contact a member of the staff for additional information at (303) 894-2320.