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  • 03-41 NASD Has Amended Section 4(b) of Schedule A to the NASD By-Laws to Increase and Establish New Fingerprint Processing Fees

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    INFORMATIONAL

    Fingerprint Processing Fees

    Implementation Date: July 15, 2003

    SUGGESTED ROUTING

    KEY TOPICS

    Legal & Compliance
    Registered Representatives
    Senior Management

    Fingerprint Processing Fees
    NASD By-Laws

    Executive Summary

    This Notice supersedes NASD Notice to Members 03-39. NASD is issuing this Notice to notify members that NASD has increased the fee charged for processing each set of fingerprints submitted by a member to NASD from $10.00 to $13.00; and (2) established a $13.00 fee to be charged by NASD to members that submit to NASD for posting to Web CRD fingerprint results and identifying information that have been processed through another selfregulatory organization (SRO).

    NASD has also made a technical change to Section (4)(b)(4) of Section A to the NASD By-Laws to substitute the term "set of fingerprints" for "fingerprint cards."

    The rule change was filed with the Securities and Exchange Commission (SEC) on July 9, 2003.1 Pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934 (Exchange Act) and SEC Rule 19b-4(f)(2) thereunder, the rule change became immediately effective upon filing. NASD will implement the rule change on July 15, 2003.

    Included with this Notice is Attachment A, the text of amended Section 4(b)(4) of Schedule A to the NASD By-Laws.

    Questions/Further Information

    Questions concerning this Notice may be directed to NASD's Gateway Call Center at (301) 590-6500.

    Fingerprint Processing Fees

    First, to help cover NASD costs associated with its fingerprinting program, NASD has increased the portion of the fee it charges to process each set of fingerprints submitted by a member to NASD from $10.00 to $13.00. Together with the $22.00 fee currently charged by the FBI for fingerprint processing, the $3.00 increase will raise the total fingerprint-processing fee from $32.00 to $35.00.

    Second, NASD will begin assessing members a $13.00 fee to cover NASD's cost of accepting and posting to Web CRD fingerprint results that were processed through another SRO consistent with the requirements of Section 17(f)(2) of the Exchange Act and Rule 17f-2 thereunder. According to those provisions of the Exchange Act, other SROs may process fingerprint cards for persons required to have their fingerprints processed through the FBI, consistent with fingerprint plans submitted by those SROs to the Commission, and NASD currently accepts those FBI results and posts them to Web CRD.

    NASD will implement the two fee-related changes on July 15, 2003.


    1 SR-NASD-2003-109


    Attachment A

    New language is underlined; deletions are in brackets.

    Schedule A To The NASD By-Laws

    Assessments and fees pursuant to the provisions of Article VI of the By-Laws of NASD shall be determined on the following basis.

    Sections 1 through 3 No change.

    Section 4 - Fees

    (a) No change.
    (b) NASD shall assess each member a fee of:
    (1) through (3) No change.
    (4) [$10.00] $13.00 for processing and posting to the CRD system each set of fingerprints [fingerprint card] submitted by the member to NASD, plus any other charge that may be imposed by the United States Department of Justice for processing [such] each set of fingerprints [card].
    (5) $13.00 for processing and posting to the CRD system each set of fingerprint results and identifying information that have been processed through another self-regulatory organization and submitted by a member to NASD.
    [(5)] (6) $30.00 annually for each of the member's registered representatives and principals for system processing.
    [(6)] (7) 10% of a member's final annual renewal assessment or $100, whichever is greater, with a maximum charge of $5,000, if the member fails timely to pay the amount indicated on its preliminary renewal statement.
    (c) through (l) No change.