During a compliance drill, focus on how the Uniform Securities Act applies here. Assume all filings and notices are evaluated under the USA. 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. The extra setup is just noise; the controlling state-law rule stays the same.

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