N.Y. Comp. Codes R. & Regs. tit. 13 § 10.2

Current through Register Vol. 46, No. 43, October 23, 2024

Section 10.2 - Central registration for FINRA member broker-dealers and salespersons of FINRA members

(a) All broker-dealers who are members of, or have applied for membership in, FINRA shall file initial broker-dealer registrations directly with the Central Registration Depository ("CRD") system (information regarding CRD is viewable at https://www.finra.org).

(b) A salesperson employed by a firm that is a member of FINRA and engaged in the sale of securities in the State of New York, shall file Forms U4 and U5 through the CRD system.

(c) The CRD system shall be maintained by FINRA, pursuant to an agreement with, and under the guidelines established by, the North American Securities Administrators Association, Inc. The alternative method of filing set forth in GBL § 359-e.13, and this Part shall be in effect so long as the Department of Law of the State of New York is a participant in the CRD system.

(d) Filings through the CRD system shall be made on an annual basis for a period ending on the 31st day of December following the date of filing.

(e) Filings through the CRD system shall be filed and paid for in accordance with CRD and form instructions. These fees shall be known as in lieu filing fees. Only current Forms U4 and U5 will be accepted for filing by the CRD to register, amend information or terminate a salesperson's registration. Only current Forms BD and BDW, or any other form agreed to and in use by the CRD, will be accepted for filing by the CRD to register, amend information or terminate a broker-dealer registration. (f) The annual fee for filing a Form BD under the alternative system is $ 30 0. The annual fee represents one-fourth the statutory f ee, GBL § 359-e.5,. The initial f ee f or filing a Form U4 is $ 70, which initial f ee represents a $ 40 portion of the statutory fee of $ 150, GBL § 359-e.5, and $ 30 which covers the required fee for broker-dealer supplemental statements pursuant to this Part. Thereafter, the annual salesperson renewal fee will be $ 37 which represents a portion of the current statutory fee of $ 150. Although filings shall be made by the firm on behalf of the securities salespersons, nothing in this procedure shall relieve the individual salesperson of any responsibility or liability under Article 23-A of the General Business Law.

(g) Any person, including but not limited to any partner, officer, director, or other principal of the broker-dealer who is not listed on the new Form BD and who shall act as a salesperson, shall register as a salesperson with the CRD on Form U4. Any person who was registered with the State of New York as a partner, officer, director, principal or salesperson between September 26, 1981 and September 26, 1983 shall not be required to take the examination as required by General Business Law, section 359-e.3 (b).

(h) Filings made through the CRD system shall be reviewed for completeness and accuracy by the CRD system. The Department of Law may designate to the CRD system the method of approval of applications for New York registration either by automatic approval by the CRD, f or those applications that meet all existing qualifications and edit criteria, or by individual approval of such applications on a case-by-case basis by the Department of Law. Firms submitting the filings shall be notified of deficiencies and required to correct same. Failure to correct any deficiencies on any Form U4 (salesperson's registration) within 180 days from receipt by the CRD system will result in the withdrawal of the application and will require a completely new filing. No refunds will be made for filings that are withdrawn either on a voluntary basis or as a result of the failure to correct deficiencies. All fees associated with filings made to the CRD system will be promptly remitted to the Department of Law.

(i) All brokers, dealers and salespersons subject to sub-section (a) of this section 10.2 shall submit amendments pursuant to Form U4 Instructions, and attendant fees pursuant to GBL § 359-e (5) for changes of in formation related to name, address, management, salespersons, and injunctions and other proceedings as described in section 10.3 of this part. All supplemental statements required herein shall be made within 30 days of the event warranting the change, except with regard to information regarding injunctions and other proceedings which must be made as soon as practicable.

N.Y. Comp. Codes R. & Regs. Tit. 13§ 10.2

Amended New York State Register July 3, 2018/Volume XL, Issue 27, eff. 7/3/2018

Amended New York State Register December 2, 2020/Volume XLII, Issue 48, eff. 12/2/2020