[Federal Register Volume 60, Number 147 (Tuesday, August 1, 1995)]
[Notices]
[Pages 39200-39201]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18818]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36025; File No. SR-NASD-95-32]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by National Association of
Securities Dealers, Inc., Relating to Schedule A of the By-Laws
Concerning Registration and Filing Fees
July 26, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on July 20,
1995, the National Association of Securities Dealers, Inc. (``NASD'' or
``Association'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the NASD.
The NASD has designated this proposal as one establishing or changing a
fee under Sec. 19(b)(3)(A)(ii) of the Act, which renders the rule
effective upon the Commission's receipt of this filing. The NASD is,
however, requesting that the fee be implemented on August 1, 1995. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The NASD is proposing to amend Section 2 to Schedule A of the By-
Laws to temporarily increase certain filing fees to recover the costs
associated with the redesign of the Central Registration Depository
(``CRD''). Proposed new language is italicized, proposed deletions are
in brackets.
Schedule A
Assessments and fees pursuant to the provisions of Article VI of
the By-Laws of the Corporation, shall be determined on the following
basis.
* * * * *
Fees
Sec. 2.
* * * * *
(b) Each member shall be assessed a fee of [$65.00] $85.00 for each
application filed with the Association for registration of a registered
representative or registered principal from August 1, 1995 through
December 31, 1996. Such fee shall be $70.00 from January 1, 1997
through December 31, 1997 and shall be $65.00 thereafter. Additionally,
each member shall be assessed a surcharge of [$85.00] $95.00 for
registrations involving a special registration review filed with the
Association from August 1, 1995 through December 31, 1997 and shall be
$85.00 thereafter. The following shall apply to the filing of
applications to re-register or transfer the registration of registered
persons or registered principals in connection with acquisition of all
or a part of a member's business by another member:
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Discount
No. of registered personnel transferred (percent)
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1,000-1,999.................................................. 10
2,000-2,999.................................................. 20
3,000-3,999.................................................. 30
4,000-4,999.................................................. 40
5,000 and over............................................... 50
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(h) (i) Each member shall be assessed a fee of [$25.00] $40.00 for
each notice of termination of a registered representative or registered
principal filed with the Corporation as required by Section 3 of
Article IV of the By-Laws from August 1, 1995 through December 31,
1996. Such fee shall be $35.00 from January 1, 1997 through December
31, 1997 and shall be $25.00 thereafter.
(ii) A late filing fee of [$50.00] $65.00 shall be assessed a
member who fails to file with the Corporation written notice of
termination of a registered representative or registered principal
within thirty (30) calendar days of such termination from August 1,
1995 through December 31, 1996. Such fee shall be $60.00 from January
1, 1997 through December 31, 1997 and shall be $50.00 thereafter.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the NASD included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
item IV below. The NASD has prepared summaries, set forth in Sections
(A), (B), and (C) below, of the most significant aspects of such
statements.
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The NASD has a major systems development project underway to
completely redesign the CRD. The CRD is a computerized system for one-
stop registration and licensing of NASD members and their associated
persons. The system was developed in 1981 to standardize and streamline
the registration process by accommodating a single filing and payment
of fees for registration in multiple jurisdictions. Today the system
processes filings on behalf of 50 states, the District of Columbia and
Puerto Rico, seven (7) self-regulatory organizations and the SEC.
The redesigned CRD, scheduled for a staged implementation in 1996-
1997, will feature electronic filings, re-engineered work processes,
expedited relicensing and a highly structured, relational database to
better serve the information requirements of regulators, members and
investors. In addition, the new system will include investment adviser
registration for the SEC and states, an E-mail communication
[[Page 39201]]
capability for system participants and a document imaging/storage/
retrieval service for support documents required in certain filing
situations.
The NASD had originally intended to fund the CRD redesign effort
from the current registration filing fees based on expected activity
levels in the 1995-1997 period. In 1995 registration activity declined
significantly, and the resulting lower revenue levels are now expected
to continue through 1997. The NASD believes it is necessary to
institute the temporary fee increase in order to continue the
investment in this important systems project. The temporary fees will
be implemented on August 1, 1995, and will apply to all filings
received on or after that date. The fee increase will be reduced for
most types of filings made in calendar 1997 and will return to their
current levels in calendar 1998.
The NASD believes that the proposed rule change is consistent with
the provisions of Section 15A(b)(5) of the Act\1\ which requires that
the rules of the Association provide for the equitable allocation of
reasonable dues, fees and other charges in that the proposed rule
provides a consistent basis for assessments among member firms and
fairly assesses a charge to cover the costs incurred by the Association
in the redesign of the CRD System.
\1\15 U.S.C. Sec. 78o-3.
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(B) Self-Regulatory Organization's State on Burden on Competition
The NASD does not believe that the proposed rule change will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective upon filing pursuant
to Section 19(b)(3)(D)(ii) of the Act and subparagraph (e) of Rule 19b-
4 thereunder in that it constitutes a due, fee or other charge.
However, the NASD has determined to implement the rule change on August
1, 1995.
At any time within 60 days of the filing of such proposed rule
change, the Commission may summarily abrogate the rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit data, views, and arguments
concerning the foregoing. Persons making written submissions should
file six copies thereof with the Secretary, Securities and Exchange
Commission, 450 Fifth Street NW., Washington, DC. Copies of the
submission, all subsequent amendments, all written statements with
respect to the proposed rule change that are filed with the Commission,
and all written communications relating to the proposed rule change
between the Commission and any person, other than those that may be
withheld from the public in accordance with the provisions of 5 U.S.C.
552, will be available for inspection and copying in the Commission's
Public Reference Room. Copies of such filing will also be available for
inspection and copying at the principal office of the NASD. All
submissions should refer to File No. SR-NASD-95-32 and should be
submitted by August 22, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority, 17 CFR 200.30-3(a)(12).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-18818 Filed 7-31-95; 8:45 am]
BILLING CODE 8010-01-M