NYSE Dumps 'Approved Person' for Snappier Lingo
Published Date: 10/6/2026
Notice
Summary
The New York Stock Exchange is shaking things up by removing the 'approved person' registration category and introducing a fresh, clearer definition of 'associated person.' This change affects brokers and traders on the Exchange and takes effect immediately, with no extra costs involved. It’s all about making rules simpler and easier to follow!
Analyzed Economic Effects
5 provisions identified: 4 benefits, 0 costs, 1 mixed.
Exchange removes 'approved person' category
On September 18, 2026, the NYSE filed a rule change that deletes the Exchange-specific "approved person" registration category and adopts a new definition of "associated person." The change is immediately effective upon filing and is intended to capture the same individuals under the single "associated person" definition.
New 'associated person' rule aligns with FINRA
The NYSE will adopt a definition of "associated person" based on FINRA Rule 1011(b) plus elements of the prior "approved person" definition. The new definition explicitly includes registered applicants, partners/officers/directors/branch managers, persons who control or are controlled by a member organization (including U.S. broker-dealers under common control), and employees.
Control persons identified via Form BD Schedules A/B
The Exchange states that direct and indirect control relationships are already reported in Schedules A and B of Form BD (the CRD system). The proposal adds Supplementary Material .30 saying Control Persons include direct and indirect owners identified on those schedules and that each Control Person must agree to submit to Exchange jurisdiction and comply with applicable Exchange rules.
Exemption and certification rules for foreign associated persons
An associated person domiciled outside the United States may be exempt from permitting an on-site Exchange examination at its domicile if an independent attorney or government official certifies such an examination would violate local law or customs. To use the exemption, the associated person must obtain the written certification at its own expense and then annually provide its affiliated member organization a written certification confirming two items, including that the associated person's accounts meet the specified conditions and that the associated person derived more than 50% of its gross revenues in the prior fiscal year from the sources specified in Section 11(a)(1)(G)(i) of the Act.
Conforming rule edits replace 'approved person' across NYSE rules
The proposal makes broad conforming edits across many NYSE rules (for example Rules 2A, 21, 22, 91, 96, 98, 112, 304, 311, 312, 313, 346, 402, 422, 460.30, 619(h), 6140, 9120) to replace references to "approved person" (or related employee language) with "associated person" or "Control Person," and deletes Rule 304 (governing Approved Persons) in its entirety.
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