Policy Statement

Regarding Broker-Dealer Agent Applications Filed Electronically Through the Central Registration Depository of the NASD

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 Division’s 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.