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STATE OF
OKLAHOMA ORDER FINDINGS OF
FACT
1. Section 660:10-5-11 of the Oklahoma Administrative Code (the
"OAC") was adopted pursuant to the authority of
Section 202 of the Oklahoma Securities Act (the "Act"),
Title 71, Oklahoma Statutes, Sections 1-413, 501, 701-703 (1991 &
Supp. 2000). Section 660:10-5-31 of
the OAC was adopted pursuant to the
authority of Section 203 of the Act. These rules pertain,
respectively, to initial registration requirements for broker-dealers
and agents and to the post-registration reporting requirements for
broker-dealers.
2. The National Association of Securities Dealers, Inc.
("NASD") along with the North American Securities
Administrators Association ("NASAA") developed the Central
Registration Depository (the "CRD"). The CRD is a
computerized system in which NASD maintains the employment,
qualification, and disciplinary histories of more than 400,000
securities industry professionals who deal with the public. NASAA has
increasingly advocated to its members that registration requirements
and procedures be streamlined to avoid unnecessary burdens on
applicants and registrants. 3. Due to changes within the securities
industry, especially as impacted by technological advancements, the
Administrator determined that certain filing requirements imposed on
broker-dealers who are members of the NASD are duplicative and
unnecessarily burdensome.
4. The Administrator has now determined to change the
requirements of 660:10-5-11 and 660:10-5-31 of the OAC to lessen the
financial and regulatory burden on broker-dealers registering both in
Oklahoma and with the NASD. Since each NASD applicant will be
providing or will have provided substantially the same information to
the NASD via the CRD, investor protection will not be adversely
affected by this order. For many years, agents of NASD members have
filed for registration with the Department solely through the use of
the CRD. This arrangement greatly reduces the paperwork burden of the
Department staff.
5. In prescribing these changes, the Administrator is
cooperating with the securities administrators of the other states
with a view to effectuating the policy of the Uniform Securities Act
and thus the Oklahoma Securities Act to achieve maximum uniformity in
applications and reports wherever practicable. AUTHORITY 1. Section 202 of the Act states in
pertinent part: (a)(1) A broker-dealer, agent, investment
adviser or investment adviser representative required to be registered
under this title may obtain an initial or renewal registration by
filing in such form and in such manner as prescribed by rule or order
of the Administrator an application, the filing fee set forth in
Section 412 of this title and any other information determined to be
necessary by the Administrator. 2.
Section §410 of the Act states in pertinent part: a) The Administrator may from time to
time make, amend, and rescind such rules, forms, and orders as are
necessary to carry out the provisions of this act, including rules and
forms governing registration statements, applications, and reports,
and defining any terms, whether or not used in this act, insofar as
the definitions are not inconsistent with the provisions of this act.
For the purpose of rules and forms, the Administrator may classify
securities, persons, and matters within his jurisdiction, and
prescribe different requirements for different classes. (b) No rule, form, or order may be made,
amended, or rescinded unless the Administrator finds that the action
is necessary or appropriate in the public interest or for the
protection of investors and consistent with the purposes fairly
intended by the policy and provisions of this act. In prescribing
rules and forms the Administrator may cooperate with the securities
administrators of the other states and the Securities and Exchange
Commission with a view to effectuating the policy of this statute to
achieve maximum uniformity in the form and content of registration
statements, applications, and reports wherever practicable. 3.
Section 411 of the Act provides in pertinent part: (i) The Administrator may designate by
order filing depositories for all records required to be filed and
maintained under this title. The Administrator may receive electronic
filings for which manual signatures shall not be required. These
records may be maintained in original form or by means of microfilm,
microfiche, photographic reproduction, computerization, digital
imaging or other copying methods. In furtherance hereof, the
Administrator is authorized to participate, in whole or in part, in
the Central Registration Depository System, [the "CRD"] in
cooperation with the National Association of Securities Dealers, Inc.
and the North American Securities Administrators Association, and any
other electronic filing depository. CONCLUSION OF
LAW
The changes made by this order are necessary, appropriate in
the public interest, and consistent with the purposes fairly intended
by the policy and provisions of the Oklahoma Securities Act. ORDER NOW THEREFORE, BASED UPON AND SUBJECT TO
THE FOREGOING, IT IS HEREBY ORDERED that effective July 15, 2001: (a) A broker-dealer who is applying for
initial registration in the state of Oklahoma pursuant to Section 202
of the Securities Act who is an NASD member, or is contemporaneously
applying for NASD membership, in lieu of the existing requirements: (1) shall file with the CRD: (A) a completed Form BD, including
Schedules A-E; and (B) the filing fee specified in Section
412 of the Securities Act. (2) shall file with the Department,
within 60 days of becoming registered, a list of the addresses,
telephone numbers and resident agents of all nonbranch sales offices
located within the state of Oklahoma (3) shall have one or more principals
registered or designated as principal(s) who meet NASD requirements
for same in lieu of registration as a principal with the Department. (b) All broker-dealers registered under
Section 202 of the Securities Act who are NASD members must file the
financial statements as required by the NASD in lieu of
post-registration filings with the Department.
WITNESS the Official Seal of the Oklahoma Department of
Securities at Oklahoma City, Oklahoma this 14th day of
June, 2001.
(SEAL)
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