Many securities professionals also act as investment advisers by offering various investment services. This registration is permanent unless withdrawn by the broker-dealer, or revoked in a disciplinary proceeding. Under federal securities laws, other classes of securities professionals also must register with the SEC, including investment advisers, transfer agents, and clearing agents. Most states require broker-dealers and associated people who engage in the offer and sale of securities to customers in the state to register with the state. State registration requirements vary.
Some states require qualifying examinations, fingerprinting, and insurance bonding for registration.
Individual registrations are issued for varying periods and purposes, and often are subject to renewal or periodic updating. In addition, people offering investment advice may be required to register. Broker-dealers and sales people doing business in more than one state must register with each state where they do business. Some firms voluntarily seek membership on one or more national securities exchange.