SEC approves NASD and NYSE uniform branch office definition for broker‐dealers

Purpose – To describe and to discuss the implications of the new National Association of Securities Dealers, Inc. (NASD) and New York Stock Exchange (NYSE) uniform branch office definition for broker‐dealers, approved on September 9, 2005, as found in the definitions of “branch office” found in NASD Conduct Rule 3010(g)(2) and NYSE Rule 342 (the “Adopted Rules.”)Design/methodology/approach – Summarizes and analyzes the adopted rules.Findings – The adoption of a single standard by NASD, the NYSE, and state law authorities will be welcome to broker‐dealers that have to date been operating under a number of varying definitions. The Adopted Rules define “branch office” very broadly, but contain important exclusions to the uniform definition such as the primary residence exclusion and exlusions for locations of limited use, locations of convenience, and locations used for other than securities business. Unfortunately, the SEC approval orders contain no discussion of how these rules might apply to the internati...