SEC Provides Guidance on Hiring by SBSDs of Statutorily Disqualified Individuals

The SEC provided guidance on security-based swap dealer ("SBSD") applications for statutorily disqualified associated persons to be permitted to effect, or be involved in effecting, security-based swaps on behalf of an SBS entity.

In an FAQ, the SEC detailed how SBSDs can submit, or provide notice in lieu of, applications to the SEC or request an exemption pursuant to SEC Rule 201.194 ("Applications by SBSDs for statutorily disqualified associated persons to effect or be involved in effecting security-based swaps").

Regarding applications requesting an exemption, the SEC noted that applications can be sent in via email and ensured that applications filed with the SEC will be kept private, but the approval or denial will be posted on the SEC's website. The notices submitted in lieu of an application may also be submitted to the SEC via email, but will be made public upon filing unless otherwise requested.