STATE OF OKLAHOMA
DEPARTMENT OF SECURITIES
First National Center, Suite 860
120 North Robinson
Oklahoma City, Oklahoma  73102

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)  

/s/

IRVING L. FAUGHT, ADMINISTRATOR OF THE
OKLAHOMA DEPARTMENT OF SECURITIES