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87-33 Forms BD and U-4 Revisions, Government Securities Brokers and Dealers Registration Requirements
TO: All NASD Members and Other Interested Persons
ATTN: All Chief Executive Officers, Compliance Officers, and Registration Managers
On October 28, 1986, President Reagan signed the Government Securities Act of 1986 providing for regulation of government securities activities by brokers and dealers. This legislation created new Section 15 C under the Securities Exchange Act of 1934 (Act), which necessitated revisions to Form BD and Form U-4 to accommodate this new area of regulatory jurisdiction.
A copy of the 4/87 Revised Form BD is attached. Effective immediately, all members are required to use the new version of the form, although no filing is required at this time for members that do not engage in any government securities activities.
NASD members and member applicants that engage in any government securities activities must comply with the provisions of new Section 15 C of the Act by completing and submitting a registration amendment on the 4/87 Revised Form BD to report their government securities activities.
FILING REQUIREMENTS FOR MEMBERS ENGAGED IN GOVERNMENT SECURITIES ACTIVITIES AND OTHER SECURITIES BUSINESS
All NASD members and applicants for membership that engage, or intend to engage, in any government securities activities in addition to other types of investment banking or securities activities are required to complete an originally signed and properly notarized 4/87 Revised Form BD amendment. This filing is due on or before July 25, 1987, and should be sent to:
P.O. Box 9401
Gaithersburg, Maryland 20898-9401
The purpose of this filing is to report government securities-related activities and information. While it is not necessary to submit the entire form, members should review the complete form to ensure all information contained in the form that is affected by government securities activities disclosure is identified. The page or pages of the 4/87 Revised Form BD that must be updated to disclose government securities-related information should be completed and submitted with an originally signed and notarized execution page (page 1). For most firms, a completed filing can be accomplished using pages 1 and 5.
FILING REQUIREMENTS FOR MEMBERS ENGAGED EXCLUSIVELY IN GOVERNMENT SECURITIES ACTIVITIES
All NASD members or applicants that have applied for membership under Section 15C as exclusive government securities brokers or dealers using the old 1/86 Form BD are required to complete and submit a 4/87 Revised Form BD amendment. The filing must include an originally signed and notarized page 1 and a fully completed page 5, and be submitted no later than July 25, 1987.
FILING REQUIREMENTS FOR INDIVIDUALS ENGAGED IN GOVERNMENT SECURITIES ACTIVITIES — REVISED FORM U-4
A few minor changes were made to Form U-4 to accommodate the new registration requirements for individuals who function as government securities representatives or principals.
Individuals who are associated with an NASD member, are engaged in government securities activities and are not currently NASD-registered as a representative or principal in another category, are now subject to the registration requirements of the new government securities statutes. Those individuals are required to use the revised 4/87 version of Form U-4 to become effectively registered.
- If you are not engaged in government securities activities, the NASD will continue to accept both the 7/85 and 4/87 versions of Form U-4.
- If you have already filed for government securities representative or principal registration using the old (7/85) version of Form U-4, you are not required to file an additional form as long as the old form was completed by checking the "Other" box under item 11 and writing in "Government Securities Representative" or "Government Securities Principal."
- If you are associated with an NASD member, are engaged in government securities activities and are NASD-registered as a representative or principal in another category, there are no additional filing requirements.
NO EXAMINATION REQUIREMENT
While currently there is no qualification examination requirement for registration as a government securities representative or principal, the Form U-4, fingerprint card, and appropriate fees should be submitted to the NASD. Registration must be approved no later than July 25, 1987, in order to conduct business thereafter.
If you are applying for registration as a government securities representative or principal and are subject to statutory disqualification pursuant to the Act, you should submit your application as soon as possible to allow adequate time to process the registration request and obtain approval from the SEC.
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Questions concerning this notice may be directed to Chris Goodwin, Assistant Director, at (301) 738-6717, or Maudese B. King, Manager, at (301) 738-6716, Member Firm Registration Services, NASD Membership Department.
John T. Wall
Executive Vice President
Member and Market Services