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Up to Sep 30 2018Oct 1 2018 onwards

1042. Restrictions for Assistant Representatives

This rule is no longer applicable. NASD Rule 1042 has been superseded by FINRA Rule 1200 Series. Please consult the appropriate FINRA Rule.

(a) Prohibited Activities
An Assistant Representative — Order Processing may not solicit transactions or new accounts on behalf of the member, render investment advice, make recommendations to customers regarding the appropriateness of securities transactions, or effect transactions in securities markets on behalf of the member. Persons registered in this category may not be registered concurrently in any other capacity.
(b) Compensation
Members may only compensate Assistant Representatives — Order Processing on an hourly wage or salaried basis and may not in any way, directly or indirectly, relate their compensation to the number or size of transactions effected for customers. This provision shall not prohibit persons registered in this capacity from receiving bonuses or other compensation based on a member's profit sharing plan or similar arrangement.
(c) Supervision
The activities of Assistant Representatives — Order Processing may only be conducted at a business location of the member that is under the direct supervision of an appropriately registered principal.
Amended by SR-NASD-2002-110 eff. Dec. 2, 2002.
Amended by SR-NASD-88-26 eff. June 12, 1989.

Selected Notice: 02-77.

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