HAR §16-39-406. Books and records

Every broker- dealer registered or required to be registered under chapter 485A, HRS, and this chapter shall prepare and maintain the books and records as described in the Securities Exchange Act, 17 CFR sections 240.17a-3 and 240.17a-4. [Eff 6/30/08; comp 11/18/23] (Auth: HRS §485A-606) (Imp: HRS §485A-411) §16-39-407 Post-effective requirements; registration of successor broker-dealer. (a) Every registrant shall promptly notify the commissioner of any material change in any information, exhibits, or schedules submitted, or circumstances disclosed in its last prior application, by filing a correcting §16-39-407 39-53 amendment at the time of occurrence or discovery of the changes. Changes that shall be reported include but are not limited to the following: (1) Change in firm name, ownership, management, or control of a broker-dealer; (2) A change in any of its partners, officers, or persons in similar positions; (3) Change in its business address, or the creation or termination of a branch office in this State; (4) Change in type of business entity, general plan, or character of broker-dealer's business, method of operation or type of securities in which it is dealing or trading; (5) Material adverse change in financial condition, insolvency, dissolution or liquidation, or impairment of working capital, or noncompliance with the minimum net capital requirements provided in sections 16-39-402(c) and 16-39-404(b); (6) Termination of business or discontinuance of those activities as a broker-dealer or agent; and (7) The commencement of any proceeding or action that is required to be disclosed pursuant to the disciplinary questions on Form BD, including but not limited to, filing of a criminal charge or civil action against a registrant or a partner or officer in which a fraudulent, dishonest, or unethical act is alleged, or a violation of a securities law or any aspect of the securities business is involved, entry of a court or administrative order or proceeding against a registrant to deny, suspend, or revoke a registration, or threatening to do so, or to enjoin it from engaging in or continuing any conduct or practice in the securities business, or to impose a fine, suspension, or expulsion from FINRA. §16-39-407 39-54 (b) Registration of successor broker-dealer. In the event that a new broker-dealer becomes the successor and continues the business of a broker- dealer registered pursuant to chapter 485A, HRS, and this chapter, the registration of the predecessor broker-dealer shall be deemed to remain effective as the registration of the successor broker-dealer only if the successor broker-dealer, within thirty days after such succession, files an application for registration on Form BD, and the predecessor broker- dealer files a notice of withdrawal from registration on Form BD-W. (1) The registration of the predecessor broker- dealer shall cease to be effective at such time as the application for registration on Form BD filed by the successor broker-dealer becomes effective; and (2) Notwithstanding any other provision of this section, if a new broker-dealer becomes the successor and continues the business of a registered broker-dealer, and the succession is based solely on a change in the predecessor broker-dealer's date or state of incorporation, form of organization, or composition of a partnership, the successor broker-dealer may, within thirty days after the succession, amend the registration of the predecessor broker-dealer on Form BD to reflect these changes. This amendment shall be deemed an application for registration filed by the predecessor broker-dealer and adopted by the successor broker-dealer. [Eff 6/30/08; comp 11/18/23] (Auth: HRS §485A-606) (Imp: HRS §485A-407) §16-39-408 Expiration, renewal, termination of registration. (a) All registrations shall automatically expire on December 31 of each year (unless sooner terminated in accordance with chapter §16-39-408 39-55 485A, HRS, and this chapter) and shall be renewed as provided in this section. A broker-dealer or issuer shall be responsible for renewing the registration of its agents at the time the broker-dealer or issuer renews its registration. A member of FINRA shall renew its registration with the commissioner by filing the renewal documents and fees through the CRD. All other broker-dealers and issuers shall renew their registration by annually filing, not earlier than November 1 or later than December 1 of the current registration year, an originally executed copy of page one of Form BD together with: (1) All amendments to Form BD that have previously not been filed with the commissioner; (2) A list of all agents of the broker-dealer that are renewing their registrations for the upcoming calendar year; (3) A copy of all amendments to Form U-4 of all such agents if such amendments have not been previously filed with the commissioner; (4) A Form U-5 on each registered agent of the broker-dealer who is not renewing its agent registration; and (5) A renewal fee as set forth in section 16-39- 103 for the broker-dealer and for each agent renewing a registration. (b) An application for renewal registration shall not be considered filed until the required fee and all required submissions have been received by the commissioner. (c) Where registrations are permitted to expire on December 31 without the filing of a renewal application, a subsequent application shall be considered in all respects as an initial application. (d) Registration may be terminated prior to the expiration date by filing a Form BD-W with the commissioner or through the CRD. Termination of the broker-dealer's registration for any reason shall automatically terminate the registration of each registered agent of the broker-dealer. [Eff 6/30/08; §16-39-408 39-56 Comp 11/18/23] (Auth: HRS §485A-606) (Imp: HRS §§485A-406, 485A-408, 485A-409, 485A-410) B. Agents