HelpFINRA Manual: Contents
FINRA Manual
Corporate Organization Notices
1995
95-104 Expanded Sign-In Procedures At The PROCTOR Centers, Effective February 1, 1996; And PROCTOR Adds Remote Delivery Sites
95-103 SEC Approves A Policy That Delegates Authority To The NASD Staff And The NASD Fixed Income Committee To Review Member Requests For Exemptions From MSRB Rule G-37(b)
95-101 Mail Vote—NASD Solicits Member Vote On Amendments To The NASD By-Laws To Reconfigure The NASD Board And Establish A National Nominating Committee;
95-88 Treasury Delays Effective Date Of Wire Transfer Recordkeeping Requirements Until April 1, 1996; Proposes Clarifying Amendments
95-85 Clarification Of NASD Notice to Members 95-16 And NYSE Information Memorandum 95-16: Content And Enforcement Of Provisions In Customer Agreements And Predispute Arbitration Clauses
95-83 SEC Approves Rules Permitting Arbitration Participants To Seek Injunctive Relief From Arbitrators
95-81 SEC Approves Rules For Reporting Customer Complaint Information; Special NASD Notices to Members
95-80 NASD Further Explains Members Obligations And Responsibilities Regarding Mutual Funds Sales Practices
95-76 SEC Permits NASD To Discipline Members And Associated Persons Who Fail To Honor Arbitration Or Mediation Settlement Agreements
95-73 NASD Requests Comment On Member Obligations To File Certain Exchange Offers That Result In Public Distributions;
95-69 Treasury Amends Bank Secrecy Act; Requires Additional Recordkeeping Requirements For Wire Transfers
95-64 SEC Approves Amendments To Article III, Section 34 Of The NASD Rules Of Fair Practice And Part I Of Schedule D To The NASD By-Laws Relating To Limited Partnership Rollup Transactions
95-63 SEC Approves Amendments To Article III, Section 34 Of The NASD Rules Of Fair Practice Relating To Freely Tradeable Direct Participation Program Securities
95-61 Mail Vote—NASD Solicits Member Vote On Amendments To The By-Laws To Include Statutory Disqualification Provisions Adopted By Congress;
95-56 NASD Files With The SEC Proposals Related To Non-Cash Incentive Programs, Disclosure Of Cash Compensation, And Direct Payments To Associated Persons
95-54 SEC Approves Amendments To Article III, Section 21 Of The NASD Rules Of Fair Practice Relating To Cold-Calling Requirements
95-50 Availability Of New Qualification Examination For Registered Options Limited Representative (Series 42)
95-47 SEC Approves NASD Proposal To Raise Position Limits For Certain Equity Securities Not Subject To Standardized Options Trading
95-45 SEC Approves Amendments To NASD Interpretation Of Forwarding Of Proxy And Other Materials Under Article III, Section 1 Of The Rules Of Fair Practice
95-44 Request For Comments On Proposed Amendments To The Exception To The Qualified Independent Underwriter Requirement In Schedule E To The NASD By-Laws;
95-37 SEC Approves NASD Proposal Amending The Foreign-Associate Provisions Of Schedule C To The NASD By-Laws
95-36 SEC Approves T+3-Related Amendments To The NASD Uniform Practice Code And Rules Of Fair Practice
95-33 Mail Vote—NASD Solicits Member Vote On Measures To Discipline Members And Registered Persons For Failing To Honor Arbitration And Mediation Settlement Agreements; Last Voting Date: June 15, 1995
95-29 Treasury Approves Amendments To Capital Requirements Under The Government Securities Act Of 1986
95-28 Treasury Provides Government Securities Broker/Dealers With Exemptive Relief In Calculating Haircuts For Options On Certain Mortgage-Backed Securities
95-24 SEC Approves Recordkeeping And Reporting Requirements For Trading Systems Operated By Broker/Dealers
95-22 SEC Approves Amendments To Article III, Section 44 Of The NASD Rules Of Fair Practice About Filing Requirements For Modified Guaranteed Annuity And Life Insurance Contracts
95-21 Request For Comments On Proposed Suitability Obligations To Institutional Customers Interpretation;
95-20 NASD Solicits Member Comment On Proposals For Comprehensive Improvements To The Regulation And Operation Of The Nasdaq Stock Market;
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95-94 NASD Requests Comment On Proposed Redefinition Of Gross Revenue For Assessment Purposes;
Comment Period Expires November 27, 1995
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Senior Management
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Executive Summary
The NASD® is requesting member comment on a proposed change to the NASD By-Law definition of Gross Revenue for NASD Assessment Purposes to require inclusion of net interest and dividend income (gross income less related interest and dividend expense but not in excess of such revenue) in assessable revenue. The change would take effect for the 1996 assessment based on revenues generated in calendar year 1995.
Background
Based on an extensive survey of members' FOCUS filings for 1995 and follow-up discussions with a number of member firm representatives, the NASD found that along with the normal interest income from customer margin accounts and dividends from trading and investment positions, a significant portion of member revenue is generated "from the securities business," representing interest associated with trading strategies involving, for example, repurchase, reverse repurchase, and stock loan/borrow transactions. The NASD Board of Governors (Board) has, therefore, approved for member comment an amendment to the definition of gross revenue to require inclusion of net interest and dividend income (gross income less related interest and dividend expense but not in excess of such revenue) in assessable revenue. This amendment treats interest and dividend income for NASD assessment purposes the same way the Securities Investor Protection Corporation treats such income for assessment purposes.
Based on FOCUS data, NASD assessment data, and survey data, the NASD estimated that this change in assessment definition, if adopted for 1995, would have generated additional assessment revenue of $3 million based on the budgeted level of assessment revenue of $39 million. Higher revenues are anticipated to be necessary beginning in 1996 to fund the commitment of greater resources to the NASD's broker/dealer regulation activities, partly in response to the recent findings and recommendations of The NASD Select Committee on Structure and Governance (the Rudman Committee).
Request For Comments
The Board believes that this amendment provides for consistent treatment of net interest and dividend income for assessment purposes, and supports the equitable allocation of dues, fees, and assessments among member firms as contained in the NASD By-Laws. The Board requests member comment before filing the amendment with the Securities and Exchange Commission. Written comments must be received no later than November 27, 1995, and should be addressed to:
Joan Conley
Corporate Secretary
National Association of
Securities Dealers, Inc.
1735 K Street, NW
Washington, DC 20006–1500.
Questions concerning this Notice may be directed to James Shelton, NASD Billing Manager, at (301) 590–6757.
