The rule requires brokers and dealers to register with the SEC and to file applications and certifications, and provides for conditional registration and exemptions from registration for certain entities.

The rule also outlines the grounds for suspension or revocation of registration, including violations of federal securities laws and rules, and provides for notice and opportunity for hearing before taking such action.

Additionally, the rule includes provisions related to the use of manipulative or deceptive devices, supervision of associated persons, and requirements for transactions in penny stocks, as well as limitations on state law and authority to restrict mandatory pre-dispute arbitration.

Entity: Brokers; dealers; municipal securities dealers; government securities brokers; government securities dealers; registered securities associations; national securities exchanges; the SEC; the Board of Governors of the Federal Reserve System; associated persons of brokers and dealers; customers of brokers and dealers; retail investors; investment advisers; funding portals; foreign persons and affiliates of foreign persons