What information must be provided to the Administrator if an individual forms a broker-dealer as a sole proprietorship?

When an individual forms a broker-dealer as a sole proprietorship, the Administrator requires financial statements to assess the financial viability and operational capacity of the business. These financial statements are crucial because they provide insights into the ownership's financial stability, net worth, and ability to meet obligations associated with being a broker-dealer.

In general, financial statements can include balance sheets, income statements, and cash flow statements, which together give a comprehensive view of the firm's financial condition. This is particularly important in the context of a broker-dealer, where regulatory bodies want to ensure that firms are sufficiently capitalized and capable of managing customer assets and risk.

In contrast, while an operational plan, client testimonials, or market analysis could provide valuable information about the business's strategy, customer satisfaction, or market position, they are not typically mandated by regulators at the formation stage. The focus is primarily on the financial health and integrity of the firm to ensure that it can operate within the legal frameworks governing broker-dealers.