New York Codes, Rules and Regulations › Title 13 - DEPARTMENT OF LAW › Chapter II - SECURITIES TRANSACTIONS AND PERSONNEL › Subchapter A - SECURITIES-GENERAL › Part 10 - BROKERS, DEALERS AND SALESPERSONS › Section 10.2 - Central registration for FINRA member broker-dealers and salespersons of FINRA members

Current through Register Vol. 46, No. 28, July 10, 2024
(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.