What is the penalty for failure to notify the State of addition or deletion of more than 10% of officers, directors, and partners?

What is the penalty for failure to notify the State of addition or deletion of more than 10% of officers, directors, and partners?

• A. $500
• B. $600
• C. $100
• D. $250

Answer: (D)

When there are significant changes in who runs the firm, the State requires notice if more than 10% of officers, directors, or partners are added or removed. Keeping the regulator informed helps ensure the license record is accurate and that control of the firm remains properly disclosed. If that notification isn’t made, the penalty is a $250 fine. This amount is set to encourage timely reporting without being overly punitive. The other listed dollar amounts don’t apply to this specific failure to notify requirement.

When there are significant changes in who runs the firm, the State requires notice if more than 10% of officers, directors, or partners are added or removed. Keeping the regulator informed helps ensure the license record is accurate and that control of the firm remains properly disclosed. If that notification isn’t made, the penalty is a $250 fine. This amount is set to encourage timely reporting without being overly punitive. The other listed dollar amounts don’t apply to this specific failure to notify requirement.