For Nasd Member Firms, Prospective Member Firms, And Associated Persons Thereof - March 2, 2001
This policy statement is intended to clarify when an application for
registration as a broker-dealer agent that is filed electronically through
the Central Registration Depository of the NASD (the CRD)
is deemed to be filed with the Massachusetts Securities Division
(the Division) for purposes of M.G.L. c.110A, §202(a)
and 950 CMR 12.202 (2)(b)(3).
Section 202(a) provides that a broker-dealer agent may obtain registration
by filing an application with the Division. Generally, agent registration
shall become effective at noon of the thirtieth day after an application
has been filed. 950 CMR 12.202(2)(b) permits broker-dealer agent applications
to be filed with the Division electronically, via the CRD system. Under
the current CRD system, agent applications are not filed directly with
the Division. Such applications are filed directly with the CRD. In many
instances, the Division does not receive notice of such applications through
the CRD until sometime after they have been filed with the CRD. The Division
does not receive notice of these filings until they have been given a
Pending status for Massachusetts in the CRD.
Accordingly, effective immediately, the Division will deem each electronically
filed application to be filed with the Division for purposes of §202(a)
on the date the application receives Pending status for Massachusetts
in the CRD.
Given that broker-dealer agent applications are generally filed electronically,
this new policy is consistent with the Divisions goal of electronic
processing of applications.
Note that this policy applies only to NASD member firms and prospective member firms, as well as associated persons thereof. Non-NASD firms and their agents generally are unable to file with the Division via the CRD system and therefore will continue to file applications and amendments directly with the Division and will be deemed filed upon receipt by the Division.