NYAG Proposes Revisions to Registration Rules for New York Securities Industry

The New York Attorney General ("NYAG") proposed revisions to registration requirements (see here and here) in order to improve supervision of the securities industry in New York.

The NYAG stated that "with these changes, New York’s registration procedures will better conform to the federal securities registration regime, cure industry confusion when it comes to certain registration requirements, and better track exam requirement compliance and disciplinary disclosures for thousands of investment advisers who provide investment advice to New Yorkers."

The proposed amendments to 13 NYCRR 10 (Brokers, Dealers and Salespersons) would require:

• notice filings for "covered securities" that are sold in New York to be submitted through the North American Association of Securities Administrators' electronic filing depository system; and

• direct filing with the State of New York of Form NF, Form D and the Uniform Notice Filing for Tier 2 Securities.

Additionally, the NYAG proposed amending 13 NYCRR 11 (Investment Advisory Services) to require:

• investment adviser representatives to be registered through the Central Registration Depository/Investment Adviser Registration Depository;

• investment adviser representatives to satisfy certain examination requirements; and

• investment advisers to take reasonable steps to verify and document the "accredited investor" and "qualified client" status of clients.

Comments on the proposal are due within 60 days of its publication in the State Register.