N.J. Admin. Code § 13:47A-3.1

Current through Register Vol. 56, No. 21, November 4, 2024

Section 13:47A-3.1 - Agents of broker-dealers

(a) Any person desiring to act in the State of New Jersey as an agent of a non-FINRA member broker-dealer registered in New Jersey directly with the Bureau or as an agent of an issuer shall file a complete and accurate application with the Bureau on the Uniform Application for Securities Industry Registration or Transfer, Form U4, as set forth at N.J.A.C. 13:47A-11.3. Such application shall be accompanied by:

1. A consent to service of process executed by the applicant. A fully executed Individual/Applicant's Acknowledgement and Consent section of Form U4, Uniform Application for Securities Industry Registration or Transfer, will satisfy this requirement;

2. The applicant's fingerprints and written consent for a criminal history record background check to be performed pursuant to 49:3-56(p); and

3. A check or money order made payable to the State of New Jersey, Bureau of Securities, In the amount of $ 190.00. Issuers of securities pursuant to N.J.S.A. 49:3-50.b need not register as agents or qualify as issuers. However, a pattern of N.J.S.A. 49:3-50.b(12) offerings by the same person or group of persons may raise a presumption that the person or persons are acting as an unregistered broker-dealer requiring broker-dealer registration of the issuer and its agents.

(b) Any person desiring to act in the State of New Jersey as an agent of a broker-dealer registered in New Jersey through the CRD shall file an application for registration as an agent with the CRD on the Form U4, Uniform Application for Securities Industry Registration or Transfer, or its successor agent application form prescribed by the CRD. The agent application shall be accompanied by a consent to service of process executed by the applicant; fingerprint cards as required by the CRD; and payment in the form prescribed by the CRD of $ 190.00 for each year of the registration period. In accordance with N.J.S.A. 49:3-58.a(2)(i), an application is incomplete unless and until the applicant pays the registration fees as provided above within the billing time limits established by the Bureau or by the CRD.

1. Pursuant to N.J.S.A. 49:3-57.a, the Bureau Chief may require that any applicant provide any of the following information, upon request:

i. An agent narrative which includes the facts and circumstances surrounding any item reported to the Bureau;

ii. Copies of the agent's complaint file containing documentation of verbal customer complaints, the written customer complaints, or legally prepared complaints, as it exists from either the current or previous employers;

iii. Copies of arbitration documents, including but not limited to, the statement of claim, answer, award, exhibits, and settlement documents;

iv. Copies of arrest reports, indictments, police reports, judgments, sentence documents, and criminal charge documents;

v. Any and all documents pertaining to civil or regulatory actions, including but not limited to, pleadings, complaints, orders, Acceptance Waivers and Consents (AWC), and judgments;

vi. Copies of State registration agreements;

vii. An employer letter confirming agent's physical location of office of employment;

viii. An employer letter granting permission for outside business;

ix. Fingerprint data pursuant to N.J.S.A. 49:3-56.p;

x. Written justification of qualifications for examination waiver processing;

xi. The applicant's clearing firm trading records;

xii. A fully executed Supervisory Agreement; or

xiii. Any additional documents or information, as needed.

2. Upon request, the applicant may be required to participate in an in-person interview conducted by the Bureau in order to complete the application process. The applicant shall supplement the application filed with the CRD by filing any additional information requested directly with the Bureau. The 30-day time period for review of an application will not commence until the application is complete.

(c) At any time during the pendency of the application, the applicant may be subject to action by the Bureau Chief pursuant to 49:3-58. Nevertheless, the Bureau may notify the applicant of the incomplete status of the application by letter, which notification shall not affect any action taken by the Bureau Chief before or after the letter is issued. The issuance by the Bureau of a notification letter may allow the applicant to supplement or amend the information previously submitted in an attempt to cure the incomplete status of the application, or to withdraw the application, within 21 days after receipt of the notification letter.

1. If, during the pendency of the application, it appears to the Bureau that the application contains a misrepresentation, omits a required document or material fact, or contains any statement which may be, at the time and in the light of the circumstances under which it is made, false or misleading in any material respect, the Bureau Chief may deny the application.

(d) The Bureau may require an agent to enter into an agreement requiring heightened supervision and other restrictive conditions as a condition of granting that agent's application for registration.

N.J. Admin. Code § 13:47A-3.1

Amended by 47 N.J.R. 2155(a), effective 8/17/2015

Amended by 51 N.J.R. 1467(a), effective 9/16/2019

Amended by 56 N.J.R. 1876(a), effective 9/16/2024

Amended by 56 N.J.R. 1986(a), effective 10/7/2024