Do people and firms have to register with the government before selling investments or providing advice about investments for a fee?
In most cases, the person selling an investment must register to do so. This also applies to anyone paid to provide investment advice. In most cases, firms offering securities must register them. Broker-dealers, investment advisers and their representatives must register with the Securities Division or qualify to register with the U.S. Securities and Exchange Commission (SEC). They must provide full information about themselves, their firms and their products.
How do I contact the Securities Division?
You may contact us at the following:
| Mailing Address | Street Address |
|
NC Department of the Secretary of State Securities Division PO Box 29622 Raleigh, NC 27626-0622 |
Courier/Overnight Delivery Address NC Department of the Secretary of State Securities Division 2 South Salisbury Street Raleigh, NC 27601 |
Telephone: 919-814-5400 or toll-free (800) 688-4507
Fax: (919) 807-2183.
Email: secdiv@sosnc.gov
What fees must I pay under the NC Securities Act and the Investment Adviser Act?
| Fee Schedule | ||
|---|---|---|
| Registration/Filing: | Amount | When is it due and how often is it paid? |
| Securities Dealer | $300.00 | On initial registration and then on annual renewal before the CRD cut-off in mid-December of each year |
| Securities Salesperson | $125.00 | On initial registration and then on annual renewal before the CRD cut-off in mid-December of each year |
| Investment Adviser | $300.00 | On initial registration and then on annual renewal before the CRD cut-off in mid-December of each year |
| Investment Adviser Representative | $75.00 | On initial registration and then on annual renewal before the CRD cut-off in mid-December of each year |
| Registered public offering of securities | $2,000.00 | On initial application |
| Notice filing for investment company securities | $1,725.00 plus $275.00 for each series, fund or portfolio offered in North Carolina | On initial notice filing and then on annual renewal |
| Notice filing for Rule 506 transaction | $350.00 | One-time fee per offering due within 15 days of first sale in NC |
| Exemption notice for a limited offering subject to Rule .1205(b) | $150.00 | One-time fee per offering due 10 days before the first sale in NC |
| Amendment of mutual fund offering amount | $50.00 | One-time fee for each amendment to increase offering amount |
| Exemption filing by not-for-profit issuer | No Charge | No fee, but filing is due 5 days before the first sale in NC |
What forms do I need to apply for a securities registration, exemption or notice filing?
| Registrations/Exemptions/Notice Filings | Forms or Information Found At: |
|---|---|
| Securities Dealer – Form BD Securities Salesperson – Form U-4 Investment Adviser – Form ADV Part I & 2 Investment Adviser Representative – Form U-4 |
To register, use the CRD and the IARD registration systems. |
| Registered public offering of securities Securities offering – Forms U-1, U-2 and U-2A (for corporate issuer) |
See N.C.G.S. §§ 78A-26,
-27 &
-28 North American Securities Administrators Association (NASAA) |
| Small Company Offering Registration (SCOR) – Forms U-7, U-1, U-2 and U-2A (for corporate issuer) |
See N.C.G.S. § 78A-27 See the NASAA website. |
| Notice filing for a mutual fund – Form NF |
See N.C.G.S. § 78A-31(a) See the NASAA website. |
|
Rule 506 transaction notice filing – Form D State filing requirements for Issuers Relying on the Securities Act of 1933, Regulation D, Rule 506 |
See requirements at 18 NCAC 06A.1211 See the Securities and Exchange Commission (SEC) website. Electronic filing available at US Electronic Filing Depository |
| Limited offering subject to Rule .1205(b) |
See requirements and schedule at 18 NCAC 06A.1205(b) Form U-2 (and Form U-2A, for corporate issuer) -- NASAA website |
| Exempt not-for-profit offering -- Schedule required by Rule.1209(d), plus Form U-2 (and Form U-2A, for corporate issuer) |
See schedule at 18 NCAC 06A.1209(d) Form U-2 (and Form U-2A, for corporate issuer) – NASAA website |
Whom do I pay?
To pay a registration fee for a security or an exemption filing fee, please make your check payable to “The NC Department of the Secretary of State” and mail it to:
NC Department of the Secretary of State
Securities Division
PO Box 29622
Raleigh, NC 27626-0622
For all other payments, please follow the instructions on the
CRD and
IARD websites.
May a securities salesman register with more than one broker-dealer firm at a time?
No. A securities salesman may register with only one firm at a time.
May an investment adviser representative register with more than one firm at a time?
It depends. A representative may register with more than one firm if the firms are under common ownership or control, or the representative is acting as a "solicitor" for more than one firm. A "solicitor" refers to an individual who offers or sells investment advisory services.
I am an insurance agent who wishes to sell variable annuities in North Carolina. What do I need to do?
Ask the compliance officer of the broker-dealer firm with which you are employed to file a Form U-4 on your behalf. Once your securities registration has been approved, contact the NC Department of Insurance at (919) 807-6800. and give them your CRD number and the effective date of your North Carolina securities registration. You must successfully pass the Series 63 exam to be a securities salesman.
Where can I find the state laws governing stockbrokers and investment advisers?
NC Securities Act.
NC Investment Advisers Act.
rules supplementing both acts.
The U.S. Securities and Exchange Commission (SEC) enforces federal securities laws and regulations.