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93-69 Broker/Dealer and Agent Renewals for 1993-94
The 1993-94 NASD broker/dealer and agent registration renewal cycle begins in early November. This program simplifies the renewal process through the payment of one invoice amount that will include fees for NASD personnel assessments; NASD branch-office fees; and New York Stock Exchange (NYSE), American Stock Exchange (ASE), Chicago Board Options Exchange (CBOE), Pacific Stock Exchange (PSE) maintenance fees; in addition, it is planned that Philadelphia Stock Exchange (PHLX) maintenance fees will also be collected through this invoice. The invoice also includes state agent renewal fees and state broker/dealer renewal fees. Members should read this Notice and the instruction materials included in the invoice package to ensure continued eligibility to do business in the states effective January 1, 1994.
Initial Renewal Invoices
On or around November 11, 1993, initial renewal invoices will be mailed to all member firms. The invoices will include fees for NASD personnel assessments NASD branch office fees; NYSE, ASE, CBOE, PSE, and PHLX (proposed) maintenance fees; state agent renewal fees; and state broker/dealer renewal fees. The NASD must receive full payment of the November invoice no later than December 17, 1993.
NASD personnel assessments for 1994 will be based on the number of registered personnel with an approved NASD license as of December 31, 1993. That personnel assessment is $10 per person. NASD branch office assessments will be based on the number of active branches as of December 31, 1993. This branch office assessment is $50 per branch.
Agent renewal fees for NYSE, ASE, CBOE, PSE, PHLX (proposed), and state affiliations are listed in a table enclosed with each invoice. The table includes a list of broker/dealer renewal fees for states that are participating in this year's broker/dealer renewal program. NYSE, ASE, CBOE, PSE, and PHLX (proposed) maintenance fees—collected by the NASD for firms that are registered with NYSE/ASE/CBOE/PSE/PHLX as well as the NASD—are based on the number of NYSE-, ASE-, CBOE-, PSE-, and PHLX-registered personnel employed by the member.
If a state is not participating in this year's broker/dealer renewal program, members registered in that state must contact the state directly to ensure compliance with renewal requirements. In addition, some participating states may require steps beyond the payment of renewal fees to complete the broker/dealer renewal process. Members should contact states directly for further information on state renewal requirements.
Payment of the initial invoice should be in the form of a check made payable to the National Association of Securities Dealers, Inc. The check should be drawn on the member firm's account, with the firm's Central Registration Depository (CRD) number included on the check. Submit the check along with the top portion of the invoice and mail in the return envelope provided with the invoice. To ensure prompt processing, the renewal invoice payment should not be included with other forms or fee submissions. Members should be aware that failure to return payment to the NASD by the December 17, 1993, deadline will mean a loss of eligibility to do business in the states effective January 1, 1994.
Filing Form U-5
Members may wish to avoid unwanted renewals by filing Form U-5 for agent terminations in one or more jurisdiction affiliations. Because of the increased convenience and flexibility reported by members that used post-dated Forms U-5 for renewals in previous years, the NASD will again process post-dated agent terminations this year. From November 1 to December 17, the NASD will accept and process Forms U-5 (both partial and full terminations) with post-dated dates of termination. Under this procedure, if the Form U-5 indicates a termination date of December 31, 1993, an agent may continue doing business in a jurisdiction until the end of the calendar year without being assessed renewal fees for that jurisdiction. Please ensure that Forms U-5 are filed by the renewal deadline date of December 17, 1993. Also, postdated Forms U-5 cannot be processed if the date of termination indicated is January 1, 1994, or thereafter.
Members should exercise care when submitting post-dated Forms U-5. The NASD will process these forms as they are received but cannot withdraw a post-dated termination once processed. To withdraw a post-dated termination, a member would have to file a new Form U-4 after the termination date indicated on the Form U-5.
The NASD encourages members having access to the Firm Access Query System (FAQS) to utilize electronic filings for the submission of all Forms U-5 and Page 1s of Form U-4. FAQS offers several advantages to firms in this regard, including the ability to process terminations immediately, ensure in-house control over agent registrations, and reduce normal and express mailing costs as well as long-distance telephone charges. It also allows members to handle quickly and efficiently the large filing volumes that typically occur at this time every year. Because of that, the NASD will provide an additional service to FAQS users by expanding the on-line user hours for November and December 1993. The system will be operational from 7 a.m. to 11 p.m., Eastern Time (ET) Mondays through Fridays and will also be available on Saturdays from 9 a.m. to 5 p.m., ET during these months.
Filing Forms BDW
The CRD Phase II program, now in its fifth year, allows firms requesting terminations (either full or state only) to file their Forms BDW with the CRD to avoid the assessment of renewal fees in those jurisdictions that are designated on the Form BDW, provided that the jurisdiction is a CRD Phase II participant. Currently, there are seven jurisdictions that are not participating in Phase II. They are:
American Stock Exchange
Chicago Board Options Exchange
New York Stock Exchange
Pacific Stock Exchange.
Firms requesting termination in any of the above-listed jurisdictions must submit a Form BDW directly to the jurisdiction as well as to the CRD.
The deadline for receipt of Forms BDW by the CRD for firms desiring to terminate an affiliation before year-end 1993 is December 17, 1993. This same date applies to the filing of Forms BDW with the jurisdictions that are not participating in Phase II. Post-dated Forms BDW filed with the CRD will be accepted and processed in the same manner as post-dated Forms U-5.
Removing Open Registrations
For the seventh year, the NASD will include in the initial invoice package a roster of firm agents whose NASD registration is either terminated or purged due to a deficient condition older than 180 days, but who have approved registrations with states. This roster should aid in the reconciliation of personnel registrations prior to year's end. Firms may terminate obsolete state registrations through the submission of a Form U-5 or reinstate NASD licenses through the filing of a Page 1 of Form U-4. No roster will be included if a firm does not have agents within this category.
Final Adjusted Invoices
On or about January 17, 1994, the NASD will mail final adjusted invoices to members. These invoices will reflect the final status of firm and agent registrations as of December 31, 1993. Any adjustments in fees owed as a result of registration terminations or approvals subsequent to the initial invoice mailing will be made in this final reconciled invoice. If a member has more agents registered at year's end than it did on the November invoice date, additional fees will be assessed. If a member has fewer registered personnel at year's end than it did in November, a credit will be issued.
Included with this adjusted invoice will be the member renewal rosters, which will list all renewed personnel with the NASD, NYSE, ASE, CBOE, PSE, PHLX (proposed), and each state. Persons whose registrations are approved in any of these jurisdictions during November and December will automatically be included in this roster, while registrations that are pending approval or are deficient at year's end will not be included in the renewal process. Firms will also receive an NASD branch office roster that lists all branches for which they have been assessed.
Firms then will have a two-month period in which to reconcile any discrepancies on the rosters. All jurisdictions should be contacted directly in writing. Specific information and instructions concerning the final adjusted invoice package will appear in the January 1994 issue of Notices to Members, as well as on the inside cover of the renewal roster.
This year's final invoice package will also include a breakdown of fees assessed by billing code for firms that use billing codes in the registration process. This breakdown will aid firms in their internal research and allocation of fees.
Philadelphia Stock Exchange Slated to Join CRD
The PHLX is scheduled to become a participant in the CRD. Once the participation has been officially approved, the CRD will process requests for the PHLX General Securities Representative (GS) registration only and will collect renewal fees for any agent who is approved with the PHLX-GS registration. The PHLX agent renewal fee will be $8.
NASD Collects Florida Broker/Dealer Renewal Fees
For the first time this year, the NASD will be collecting Florida broker/dealer renewal fees on its initial and final adjusted renewal invoices. If a firm is registered in Florida on CRD by November 5, 1993, its invoice will reflect the $200 Florida broker/dealer renewal fee in addition to the $20 per agent renewal fee. In the past, all Florida broker/dealer renewal fees were paid by firms directly to the state.
Questions concerning this Notice may be directed to the NASD Member Services Phone Center at (301) 590-6500.