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For Your Information

NASD Encloses New Guide to Information and Services

With this issue of Notices to Members, NASD members are receiving the new edition of the NASD Guide to Information and Services. The Guide is arranged by subject headings and includes the names and phone numbers for NASD contacts on each subject.

Date Changes for January First Saturday Examination

The date for the January 1991 first Saturday examination in Rio Piedras, Puerto Rico, has been changed to January 19, 1991. Appointments will be necessary for all candidates who wish to take an examination that day and can be made by calling the NASD Member Services Phone Center at (301) 590-6500. Appointment requests must be received no later than Wednesday, January 9, 1991.

Date Changes for February Foreign Examination in Tokyo

The date for the February 1991 regular foreign examination in Tokyo, normally held on the third Saturday, has been changed to February 2.

American Stock Exchange Raises Agent Fees Effective January 1

As of January 1, 1991, the American Stock Exchange raised its fees for agent registration and transfer. The agent registration fee increased from $25 to $40, while the agent transfer fee rose from $10 to $25. Questions regarding these changes should be directed to the NASD Member Services Phone Center at (301) 590-6500.

NASD Sends Two New Publications to Member Firms

With this issue of Notices to Members, the NASD is sending member firms one complimentary copy of its new brochure, "Understanding Your Role as an RR." The publication explains to new applicants for registration their obligations to customers and responsibilities to their firms. It will be sent to each applicant's home address when the registration is processed. Additional copies of the brochure are available at 50 cents each for up to 50 copies, 40 cents each for from 51 to 500 copies, and 35 cents each for more than 500 copies. Send a check or money order, payable to the National Association of Securities Dealers, Inc., to NASD, Book Order Department, P.O. Box 9403, Gaithersburg, MD 20898-9403.

Separately, the NASD recently mailed to each member firm an updated copy of the NASD Compliance Check List. The 24-page publication provides members with basic guidelines for evaluating their operational and compliance needs. Additional copies are available at $25 each by sending a check or money order to the above address. Each order must include a gummed mailing label with the return address.

Address of District 8 Cleveland District Office Changes

Effective immediately, address correspondence to the NASD's District 8 Cleveland office to 1350 Euclid Avenue, Suite 900, Cleveland, OH 44115. The phone and FAX numbers remain (216) 694-4545 and (216) 694-3048, respectively.

New Hot Line Number Begins Service for Certain Schedule H Reporting

The new "hot line" number, which began operating January 31, for SEC Schedule H non-Nasdaq over-the-counter securities reporting and related problems is 1-800-288-3855. Firms with questions regarding the Automated Regulatory Reporting System (ARRS) also should use this number.

Three PLATO Development Centers Relocate or Close

Effective February 1, 1991, the Richmond, Virginia PLATO Development Center relocated to Culpepper Building, 1606 Santa Rosa Road, Suite 133, Richmond, Virginia 23288.

Effective March 31, 1991, the following PLATO Development Centers will close permanently: Toledo, Ohio, and Erie, Pennsylvania.

SIPC Trustees Appointed for Two Securities Firms

On January 22, 1991, the United States District Court for the Southern District of Texas appointed the Securities Investor Protection Corporation (SIPC) trustee for:

John M. Sorensen & Co., Inc.
10565 Katy Freeway #235
Houston, Texas 77024.

Questions regarding the firm should be directed to SIPC trustee:

Securities Investor Protection Corporation
805 Fifteenth Street, NW, Suite 800
Washington, DC 20005-2207
(202) 371-8300.

On December 22, 1990, the United States District Court for the Eastern District of Pennsylvania appointed a Securities Investor Protection Corporation (SIPC) trustee for:

Lloyd Securities, Inc.
7837 Old York Road
Elkins Park, Pennsylvania 19117.

Questions regarding the firm should be directed to SIPC trustee:

Robert E. Shields, Esquire
Drinker Biddle & Reath
1100 Philadelphia National Bank Building
Broad and Chestnut Streets
Philadelphia, Pennsylvania 19107.

Members may use the "immediate close-out" procedures as provided in Section 59(i) of the NASD's Uniform Practice Code to close out open over-the-counter contracts. Also, Municipal Securities Rulemaking Board Rule G-12(h) provides that members may use the above procedures to close out transactions in municipal securities.

Arkansas, Arizona Begin Participation in CRD Phase II Program

Effective March 1, 1991, Arkansas and Arizona began participation in the Central Registration Depository (CRD) Phase II program for receipt and review of broker-dealer filings. While the Arkansas broker-dealer registration fee of $300 will be collected through CRD, Arizona will continue to receive the initial Form BD as well as the fee associated with a request for broker-dealer registration in that state.

Questions regarding filing requirements for these two states should be directed to the Arizona Corporation Commission at (602) 542-4242 and the Arkansas Securities Department at (501) 324-9260.

May Paper and Pencil Examination Date Changes in Montana

The May paper and pencil administration of qualifications examinations at The College of Great Falls, Great Falls, Montana, will be held May 11 instead of May 4 because of commencement exercises.

Two PLATO Testing Centers Slate Permanent Closing March 31

Effective with the close of business March 31, 1991, the following two PLATO Testing Centers will close permanently as a result of low testing volume: Toledo, Ohio, and Erie, Pennsylvania.

Questions regarding this action should be directed to the Member Services Phone Center at (301) 590-6500.

Leading Industry Policymakers to Speak at Regional NASD Conference

"Compliance, Competitiveness & Change" is the theme of the NASD's eastern regional membership meeting and securities conference at the Doral Resort & Country Club in Miami May 23 and 24. The program includes general sessions on the economic outlook for the securities industry and on media coverage of the markets. There also will be a special training session for NASD arbitrators. Workshop topics include advertising, arbitration, bank broker-dealers, branch-office compliance, compliance officers, corporate financing, financial and operational, insurance broker-dealers, investment companies, Nasdaq trading, The POR-TALSM Market and OTC Bulletin Board (demonstrations), public securities, qualifications, and securities regulation.

Speakers at the meeting, which is sponsored by NASD Districts 5, 7, 8, 9,10, and 11, include NASD President and Chief Executive Officer Joseph R. Hardiman, Business Week correspondent Dean Faust, Wall Street Journal reporter Anne Newman, Securities Investor Protection Corporation President Theodore H. Focht, Assistant U.S. Treasury Secretary for Economic Policy Sidney Jones, SEC Assistant Director for Compliance and Financial Responsibilities Michael A. Macchiaroli, Municipal Securities Rulemaking Board Executive Director Christopher Taylor, Security Traders Association President John L. Watson III, Hambrecht and Quist Chairman Gordon S. Macklin, and McDonald & Company Securities President (and NASD Chairman) William B. Summers, Jr.

Conference registration is limited and costs $295 per person ($275 per person for firms registering three or more persons). A10 percent early registration discount is available through April 22. Registration for the arbitration session only costs $75 per person. For registration details and additional information about the conference, contact Elisabeth Owen at the NASD at (202) 728-8005.

Seabury & Smith Markets Renamed NASD Insurance Plan for Members

Seabury & Smith, which has managed the NASD's fidelity bond program since 1982, has been selected to assume marketing of the NASD Insurance Trust Group Plan for member firms. The plan, renamed the NASD Employer Assurance Program, offers a choice of group term life, accident, major medical and dental plans structured to provide flexibility and cost containment.

The program continues to be administered and underwritten by State Mutual Life Assurance Company of America.

For quotations or other information on new coverage, call Seabury & Smith at 1-800-424-9883, extension 354 between 9 a.m. and 5 p.m., Eastern Time. Current policyholders with questions should call 1-800-262-NASD.

1991 Nasdaq Fact Book & Company Directory Published

The NASD has combined two of its major publications into the 1991 Nasdaq Fact Book & Company Directory, which is now available. The 231-page book provides price and volume data for all the 4,706 Nasdaq National Market and regular Nasdaq securities traded during 1990 as well as overall data and information on market makers in Nasdaq securities. For each of the 4,132 Nasdaq companies, the book provides the full company name, its Nasdaq symbol, the company's standard industrial classification code, the contact person for media and investor relations with title and phone number, and the company's address. Copies of the book cost $15 each and may be obtained by sending the order form on the inside front cover of this issue of Notices to Members, together with a check or money order payable to the National Association of Securities Dealers, Inc., to NASD, Book Order Department, P.O. Box 9403, Gaithersburg, MD 20898-9403.

First Saturday Paper and Pencil Exams Dropped in El Paso

The First Saturday paper and pencil qualification examinations in El Paso, Texas, have been discontinued. The decision resulted from several factors. In the past seven months, for example, only two candidates scheduled tests in El Paso. In addition, the recent loss of the NASD's proctor and test site prompted a review of member use of this center.

PLATO Phone Numbers Change in Edina, Houston; Address Changes in Houston

Effective immediately, the telephone number for the Edina, Minnesota, PLATO Development Center is (612) 835-9420. The address has not changed. Also effective immediately, the Houston, Texas, PLATO Development Center is relocating to 10333 Richmond Avenue, Sixth Floor, Houston, TX 77042. The new telephone number is (713) 952-5005.

SEC Adopts Amendments to Rule 15c2-11 That Take Effect June 1

On April 17, 1991, the SEC adopted amendments to Securities Exchange Act Rule 15c2-11 that become effective June 1, 1991. Rule 15c2-11 governs a broker-dealer's submission and publication of quotations for certain over-the-counter securities in a quotation medium (e.g., the OTC Bulletin Board service or the Pink Sheets™ publication). Generally, the rule specifies certain documents or information that a broker-dealer must have prior to publishing a quotation for a covered security.

As amended, Rule 15c2-11 establishes an affirmative obligation for a broker-dealer to review the requisite information and form a reasonable basis for believing that such information is accurate in all material respects and is obtained from a reliable source. Additionally, the rule would require a broker-dealer to obtain and review a copy of any SEC order or release announcing a trading suspension in a covered security during the preceding 12 months.

More detailed information about these and other changes to Rule 15c2-11 will be published in the June Notices to Members.

PLATO Development Center Address in Los Angeles Changes

Effective immediately, the Los Angeles, California, PLATO Development Center is relocating to 701 North Brand Boulevard, Suite 340, Glendale, CA 91203. The new telephone number is (818) 545-7383.

North Dakota Increases Broker-Dealer and Agent Registration Fees

Effective July 7, 1991, North Dakota will increase its broker-dealer and agent fees. The broker-dealer registration and renewal fee will rise from $175 to $200. Agent registration, transfer, and renewal fees will climb from $35 to $50.

If you have questions regarding these changes, call NASD Information Services at (301) 590-6500.

Joint NASD/MCI Program Gives Special Discounts, Services to Members

Effective June 19, MCI Communications Corporation, through a new partnership with the NASD, began offering NASD members a full package of specially discounted telephone services — including long-distance calling and a customized calling card service — designed to meet telecommunications requirements of the securities industry.

Among the cost-saving features included in the program are special discounts of between 20 and 35 percent on MCI products and services, and an additional 6 percent savings based on royalties paid by MCI to the NASD on members' total monthly discounted usage fees. The NASD, in turn, passes through these discounts to participating members. Among the MCI services available under the program are MCI Preferred, PRISM PLUS, PRISM 1, Vision, 800 numbers, Vnet, and data services.

The package also provides members with a new calling card that combines long-distance calling services with 24-hour real-time stock quote and market information services. The card enables users to get overviews of the major indexes as well as real-time quotes on any stock listed on The Nasdaq Stock MarketSM and the major exchanges. It also allows users to build two personalized portfolios, with up to 30 stocks each, on which they can receive instant information on current prices, number of shares, and total market values.

Publication Date of Notices to Members Shifts to 15th of Month

Effective with the August issue, NASD Notices to Members will be published on the 15th of the month (or the first business day after that if the 15th is on a weekend or holiday) instead of the first business day of the month as it is now. The change will facilitate rapid dissemination of items stemming from NASD Board of Governors meetings.

The publication date change will alter the "closing" dates for information in the Disciplinary Actions section of the newsletter as well as in the monthly notice on additions, changes, and deletions to listing on the Nasdaq National Market. The new dates will appear on those notices beginning with the August issue.

NASD Reprints Editorial Demonstrating Responsiveness to Complaints

In a recent guest editorial published in the Star Ledger, a major daily newspaper circulated in New Jersey, NASD Executive Vice President of Compliance John E. Pinto Jr., describes the many ways in which the NASD keeps the securities markets operating in the best interests of investors. With the permission of the newspaper, the NASD is reprinting the editorial on the back of this page.

The Star Ledger

BUSINESS FORUM

Public can fake stock in NASD's integrity

By JOHN E. PINTO JR.

John E. Pinto Jr. is executive vice president for compliance of the National Association of Securities Dealers Inc.

Just as investors are concerned with the integrity of the securities markets, so is the National Association of Securities Dealers Inc. (NASD), the largest self-regulatory organization of the industry, with 5,700 member firms and nearly 420,000 securities agents registered with it. Consider the facts and figures below.

In 1990, the NASD received 3,725 customer complaints from among the 47 million individual investors in the U.S. By security type, the complaints broke down as follows:

  • Options trading produced 37 complaints. The premium value of options traded in the year was $79 billion.

  • There were 201 complaints in the municipal securities area. An estimate of municipal securities held in 1990 by households and funds, commercial banks, insurance companies and others puts their value at $840 billion.

  • The outstanding public and private Direct Participation Programs, often called tax shelters, have an estimated paid-in capital of $147 billion. Activity in them in 1990 generated 271 customer complaints.

  • The aggregate volume of mutual fund sales was $150 billion. Trans actions in this area led to 622 complaints.

  • In the Nasdaq Stock Market, the second-largest equity market in the U.S., broker-dealers belonging to the NASD in 1990 completed some 30 mil lion transactions for individual and institutional investors. There are 4,700 securities issued by 4,100 companies listed on Nasdaq. Their trading in 1990 totaled 33.4 billion shares, with a dollar value of $452 billion. It led to 376 complaints.

  • Trading in exchange-listed stocks and miscellaneous securities produced 653 complaints.

  • Five hundred sixty-seven complaints were not related to specific types of securities.

  • The biggest single block of customer complaints-998 of them-was registered in the penny stock area, where the dollar volume of trading was estimated at under $10 billion.

Except for penny stocks, the ratio of complaints compared to the dollar amounts traded is insignificant. More on penny stocks later.

Another way to measure how clean the securities markets is by the claims made by investors against securities firms and their associates in the arbitration forums which the NASD and the exchanges administer. The total amount claimed by investors in 1989 was $104 million. The aggregate dollar volume of trading only in the U.S. equity markets that year was $2.3 trillion. The $104 million was 45/100th of one percent of that.

From the standpoint of a self-regulatory organization like the NASD, even the low complaint and arbitration statistics are not good enough. One of our key objectives is to get miscreant firms and individuals out of our industry-and fast.

In 1990, the NASD filed 1,083 disciplinary actions against its member firms and registered persons. Of these, 365 ensued from customer complaints. The 818 others were the results of the NASD's broker-dealer surveillance, which included 3,856 on-site examinations of firms. These actions led to the expulsion of 92 mostly small firms from the NASD, the barring of 673 individuals from association with any member firm, the temporary suspension of 17 firms and 233 individuals, and the imposition of more than $30 million in fines.

The NASD Market Surveillance Department performs computer-assisted monitoring of every quote change and transaction report in the Nasdaq Stock Market, to look for possible insider trading, market manipulation, and other violations. In 1990, the Market Surveillance Committee took 21 formal disciplinary actions, leading to four bars of individuals, 25 suspensions of firms or individuals, and the imposition of $3.2 million in fines.

In the penny stock area, the NASD has brought more than 200 disciplinary actions in the last three years, and another 250 are in the pipeline. For example, in May 1990, the Stuart' James Company, the largest penny stock firm, was fined $2.1 million, and withdrew from the field; in July, J.W. Gant & Associates was fined $30,000, ordered to disgorge nearly $200,000, and required to restructure itself to prevent future violations.

The teamwork of the SEC, the states, the Department of Justice, the FBI and the NASD has succeeded in reducing from 200 to less than 100 the number of firms doing a significant business in penny stocks, and in cutting penny stock volume from an estimated 80 million shares a day in 1989 to under 40 million in 1990. More than 40 percent of the complaints received by the NASD in 1989 concerned penny stocks; today it is 25 percent, and falling.

Not only are the securities markets quite clean, but the clean-up continues with vigor.

Reprinted by permission of The Star-Ledger, May 19, 1991. © 1991 Newark Morning Ledger Company.

Colorado Cuts Registration Fees; Arkansas Changes CRD Phase II Participation

Effective July 1, 1991, Colorado reduced its broker-dealer and agent fees. The broker-dealer registration and renewal fee fell from $130 to S100. Agent registration, transfer, and renewal fees declined from $25 to $20.

Effective June 20, 1991, Arkansas ceased to allow its initial broker-dealer registration fee of $300 to be collected through the Central Registration Depository (CRD). Payment of the fee now should be submitted directly to the state.

If you have questions regarding these changes, call NASD Information Services at (301) 590-6500.

West Orange, New Jersey, and Charlotte, North Carolina, PLATO Centers Relocate

Effective August 26, 1991, the West Orange, New Jersey, PLATO Professional Development Center will relocate to 101 Eisenhower Parkway, 4th Floor, Roseland, NJ 07068. The new phone number will be (201) 228-8777.

The West Orange center will close at noon Thursday, August 22 and all day Friday, August 23.

Effective September 16, 1991, the Charlotte, North Carolina, PLATO Professional Development Center will relocate to 5250 77 Center Drive, Suite 495, Charlotte, NC 28217.

The Charlotte center will close at 1 p.m. Thursday, September 12 and all day Friday, September 13. The telephone number will remain the same.

Maine Hikes Licensing and Filing Fees, Eases Use of "Blue Sky" Exemption

The Maine Securities Division is increasing two categories of fees and easing use of the exemption from state registration for Nasdaq/NMS securities to make it a self-executing exemption that does not require a filing or a fee. All of the changes, which result from implementation of the Revised Maine Securities Act, are effective August 19, 1991.

The fee for initial and renewal sales representative licensing applications will rise from $30 to $40. The filing fee for securities registration will go up from $300 to $400 for each security being offered, except for offerings in which the total amount raised (in and out of state) does not exceed $1 million. The fee for these smaller offerings will remain at $300.

The new law continues to provide for an exemption from state "blue sky" registration for securities listed or approved for listing on Nasdaq/NMS and eliminates the previous requirement for those approved-for-listing securities that a notice filing and fee be sent to the Maine Securities Administrator. For additional information about the changes, contact the state securities division at (207) 582-8760.

An Important Letter to Members

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
1735 K STREET, NORTHWEST
WASHINGTON, D.C. 20006

September 16, 1991

To All NASD Members:

The recent disclosure of impropriety in the government securities market is yet another link in the chain of recent events that have shaken investor confidence and brought into question the credibility of the securities industry. Recovering from the highly publicized cases of insider trading, irregularities in the junk bond market, and the near collapse of the savings & loan industry, the financial markets have been dealt another blow.

As might be expected, a number of serious questions are being asked: Are America's securities markets fair? Are greed, corruption, and rulebreaking commonplace? An important question, which we must ask ourselves, is whether self-regulation works. More to the point, self-regulation has been an integral part of the securities industry for more than 50 years — but is the commitment to it still strong?

Lest we forget, self-regulation is not a right but a privilege. It is a responsibility that must be earned and re-earned. The compact forged between our industry, federal regulators, and lawmakers in the 1930s — which led to the formation in 1939 of the NASD — placed enormous trust in the ability of the securities industry to regulate itself. We must do everything in our power to sustain that trust.

The starting point is for every NASD member to reaffirm its commitment to observing the highest standards of professional and ethical conduct and to following just and equitable principles of trade. Since the responsibility for compliance with rules and regulations begins with the securities firms themselves, every member should undertake a comprehensive review of its internal compliance programs to be absolutely certain they are effective. If deficiencies are detected, they must be corrected promptly. In addition, each of us should personally scrutinize our daily activities, making certain that self-interest or the interests of the firm do not stand in the way of our mandate to serve the investing public fairly. We must submit to rigorous and repeated self-examination.

In spite of recent events, U.S. securities markets continue to be the fairest, most visible, and best regulated in the world. Self-regulation has helped make them so. The process works — but it can work better. We must demonstrate that self-regulation is effective at detecting and deterring wrongdoing. If we fail, we stand to lose the trust and confidence of our most valuable asset — the investor.

Unquestionably, the overwhelming majority in the securities industry play by the rules. They are ethical. They are honest. They know that good compliance is good business. Through renewed commitment and the rededication of every market, every member, and every professional in our industry to the principles of self-regulation, it is within our power to restore investor confidence in the financial markets. Together we can make it happen.

Sincerely,

William B. Summers, Jr.
Chairman

Joseph R. Hardiman
President and CEO

Texas, Nebraska Increase Broker/Dealer, Agent Registration Fees

Effective September 1, 1991, Texas boosted its broker/dealer and agent registration fees. The broker/dealer registration fee increased from $70 to $275, while the broker/dealer renewal fee rose from $35 to $240. The agent registration and transfer fees jumped from $30 to $235, while the agent renewal fee climbed from $15 to $220.

Effective September 6, 1991, Nebraska increased its broker/dealer and agent fees. The broker/dealer registration and renewal fee each rose from $100 to $250. Agent registration, transfer, and renewal fees went from $15 to $40.

If you have any questions regarding these changes, call NASD Information Services at (301) 590-6500.

NASD Western Region Conference Slated for November 22-23

Mark your calendar for the NASD's Western Region Securities Conference sponsored by Districts 1, 2, 3, 4, and 6 on November 22 and 23, 1991, at the Registry Resort in Scottsdale, Arizona. Registration information will be mailed to all main and branch offices of member firms in the sponsoring districts in late September. Members in other districts that are interested in additional information should contact Elisabeth Owen at (202) 728-8005.

New Paper and Pencil Exam Site to Open in South Dakota

Effective October 5, 1991, NASD paper and pencil qualification examinations will be administered at a new first-Saturday location in South Dakota. Appointments will be accepted for that session beginning in September. The center is located at Sioux Falls College, Science Center, Room 203, 1501 South Prairie, Sioux Falls, SD.

NASD Hosts Securities Conference in Arizona Next Month

NASD Districts 1, 2, 3, 4, and 6 will sponsor a securities conference at the Registry Resort in Scottsdale, Arizona on November 21-23. The program includes general sessions on the economic outlook for the securities industry, staying competitive, and media coverage of the markets. Workshop topics include advertising, arbitration, branch office compliance, compliance and supervision issues, District Business Conduct Committee issues, financial and operational concerns, financial planners and insurance broker/dealers, investment companies, markups, qualifications, and securities regulation. There will also be a special training session for NASD arbitrators.

Speakers at the meeting include NASD President and Chief Executive Officer Joseph R. Hardiman, Securities Investor Protection Corporation President Theodore H. Focht, Assistant U.S. Treasury Secretary for Economic Policy Sidney Jones, SEC Assistant Director for Compliance and Financial Responsibilities Michael A. Macchiaroli, and McDonald & Company Securities President (and NASD Chairman) William B. Summers, Jr.

Conference registration is limited and costs $295 per person. A 10 percent early registration discount is available through October 21. Registration for the arbitration session only is $90 per person. To request a conference brochure, please fax your name, firm, and address to Elisabeth Owen at (202) 728-6952. For additional information, call her at (202) 728-8005.

Alaska, Puerto Rico Increase Broker/Dealer, Agent Registration Fees

Effective September 8, 1991, Texas boosted its broker/dealer and agent fees. The broker/dealer renewal fee jumped from $75 to $200. The agent registration and transfer fees increased from $50 and $10, respectively, to $75 each, while the agent renewal fee rose from $30 to $75.

Effective August 28, 1991, Puerto Rico increased its agent registration, transfer, and renewal fees from $25 to $150.

If you have any questions regarding these changes, call NASD Information Services at (301)590-6500.

Three PLATO Centers Relocate, New Center to Open in Emeryville, California

Effective immediately, the Edina, Minnesota PLATO Professional Development Center has relocated to 8300 Norman Center Drive, Suite 850, Bloomington, MN 54437. The telephone number remains the same.

Effective November 25, 1991, the Binningham, Alabama PLATO Professional Development Center will relocate to Lakeshore Park Plaza, 2204 Lakeshore Drive, Suite 305, Birmingham, AL 35209. The new telephone number will be (205) 870-9836. The current location will be closed on Thursday and Friday, November 21 and 22.

Effective December 16, 1991, the Albuquerque, New Mexico PLATO Professional Development Center will relocate to 6400 Uptown Boulevard, NE, Suite 476-W. Anew telephone number has not been assigned yet.

A new PLATO Professional Development Center will open in mid-December in the San Francisco/Berkeley area. The address will be 6425 Christie Avenue, Emeryville, CA 94608. The telephone number has not yet been assigned.

Kansas, Illinois, Nevada Increase Agent Registration, Transfer, and Renewal Fees

Effective October 7, 1991, Kansas increased its agent fees. Agent registration, transfer, and renewal fees all rose from $25 to $30. Broker/dealer registration and renewal fees remained at $100 each.

Effective November 1, 1991, Illinois also boosted its agent fees. Agent registration, transfer, and renewal fees climbed from S40 to $50. Broker/dealer registration and renewal fees remained at $300 each.

Effective October 1, 1991, Nevada increased its agent registration, transfer, and renewal fees from $50 to $55.

If you have any questions regarding these changes, call NASD Information Services at (301) 590-6500.

Correction to October 1991 "For Your Information"

The October 1991 Notices to Members "For Your Information" article titled "Alaska, Puerto Rico Increase Broker/Dealer, Agent Registration Fees" erroneously referred to Texas instead of Alaska in the first sentence. The fees mentioned are for Alaska. The Texas fee change information was listed correctly in the "For Your Information" section of the September 1991 NASD Notices to Members.

NASD Seeks Permission to Contact Brokers About Insurance Programs

The NASD recently sent a letter to the Chief Executive Officer of each member firm requesting permission to contact its registered representatives directly about the Association's group insurance programs. The letters followed the approval of both the Members Group Insurance and the Membership Committees of the NASD to allow the use of the Association's data base for such direct contacts, but only with the consent of each member firm. The NASD will not make the information in the data base available for any other purpose.

While the NASD has provided information on the programs (covering life, accidental death, disability, and major medical insurance) to member firms for many years, it never has contacted registered representatives directly about them.

Beginning late this month, brochures describing the life insurance program will be sent to the homes of registered representatives of those firms granting permission. The registered representatives then may apply for whatever level of protection they elect. The NASD's group insurance administrators will forward an individual's application to the proper insurance carriers and then will begin servicing all phases of each account.

New Hampshire Increases Agent Registration and Transfer Fees

Effective January 1, 1992, New Hampshire will increase its agent fees. Agent registration and transfer fees each will rise from $65 to $130.

If you have any questions regarding these changes, call NASD Information Services at (301) 590-6500.

Alabama Withdraws from CRD Phase II Participation

Effective January 1, 1992, Alabama will withdraw from participation in the Central Registration Depository (CRD) Phase II. Member firms will be required to submit Form BD, amendments to Form BD, and Form BDW directly to the state instead of to the NASD.

The state will be sending a separate notification to all firms registered in Alabama that will outline the new filing procedures and requirements. If you have any questions, contact the Alabama Securities Commission at (205) 242-2984.

PLATO Centers Change Phone Number in Albuquerque, Address in Waitham

Effective December 16, 1991, the telephone number of the Albuquerque, New Mexico PLATO Development Center will change to (505) 884-6033.

The PLATO Development Center in Waltham, Massachusetts will relocate effective January 13, 1991, to 1601 Trapelo Road, Waitham, MA 02154. The telephone number will remain the same. The center will be closed on Thursday and Friday, January 9 and 10.


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