During a compliance drill, focus on how the Uniform Securities Act applies here. Assume the administrator is testing the cleanest state-law answer. Smith & Co., a registered broker-dealer in State A, changes its legal form from a partnership to a corporation. The principals and business operations remain unchanged. What must Smith & Co. do regarding its registration?

ANothing, as the registration transfers automatically
BImmediately cease all business until a new registration is approved
CNotify clients but take no action with the Administrator
DFile a successor firm amendment to its registration✓ Correct answer

Explanation

Why D — File a successor firm amendment to its registration

Under USA Section 202(b), when a registered broker-dealer changes its form of organization, the new entity is considered a successor firm. The successor may file an amendment to the existing registration rather than a new application, allowing business to continue without interruption while the Administrator is properly notified of the structural change. This variant keeps the same legal rule but shifts the setup so recall has to stay flexible.

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