[Federal Register Volume 64, Number 191 (Monday, October 4, 1999)]
[Notices]
[Pages 53762-53763]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-25700]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41937; File No. SR-NASD-99-43]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the National Association of
Securities Dealers, Inc. Relating to Central Registration Depository
Fees
September 28, 1999.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on September 7, 1999, the National Association of Securities Dealers,
Inc. (``NASD'' or ``Association''), through its wholly owned subsidiary
NASD Regulation, Inc. (``NASD Regulation'' or ``NASDR''), filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I, II, and III below, which Items
have been prepared by NASD Regulation. The NASD has designated this
proposal as one changing a due, fee, or other charge imposed by the
NASD under Section 19(b)(3)(A) of the Act,\3\ which renders the
proposal effective upon receipt of this filing by the Commission. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The NASD proposes to amend Schedule A of the NASD By-Laws to revise
the fees imposed for filings made with the Central Registration
Depository (``CRD''). Below is the text of the proposed rule change.
Proposed new language is italicized; proposed deletions are in
brackets.
Schedule A to the NASD By-Laws
Section 2--Fees
(b) The NASD shall assess each member a fee of:
* * * * *
[(3) $20.00 for each amended Form U-4 or Form U-5 filed by the
member with the NASD;]
[(4)] (3) $95.00 for the additional processing of each initial or
amended Form U-4 or Form U-5 that includes the initial reporting,
amendment, or certification of one or more disclosure events or
proceedings;
[(5)] (4) $10.00 for each fingerprint card submitted by the member
to the NASD, plus any other charge that may be imposed by the United
States Department of Justice for processing such fingerprint card; and
[(6)] (5) [$15.00] $30.00 annually for each of the member's
registered representatives and principals [to renew the registration
for the following year] for system processing.
* * * * *
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 NASDR 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 NASDR 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
1. Purpose
The proposed rule change amends Schedule A of the NASD By-Laws to
revise certain fees charged for operating the Central Registration
Depository (``CRD''). Currently, the NASD charges a $20.00 fee for each
Form U-4 and U-5 amendment, and a $15.00 annual registration renewal
fee for each registered person. The NASD has determined to discontinue
charging the $20.00 amendment fee and instead charge an annual $30.00
system processing fee, which is designed to cover the costs of both
registration renewals and amendments. This fee structure is more
predictable and will assist firms in budgeting for CRD-related expenses
and the NASD in forecasting its revenues to help ensure that all CRD
[[Page 53763]]
costs are covered by fee revenues. NASD Regulation plans to make the
proposed fee change effective on January 1, 2000. The proposed rule
change will be announced in a Notice to Members at least 30 days in
advance of the effective date.
2. Statutory Basis
The NASD believes that the proposed rule change is consistent with
the provisions of Section 15A(b)(5) of the Act,\4\ which requires,
among other things, that the Association's rules must provide for the
equitable allocation of reasonable dues, fees, and other charges among
members and issuers and other persons using any facility or system
which the Association operates or controls. The NASD believes that the
amended fees will be easier for firms and the NASD to administer and
are equitably allocated.
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\4\ 15 U.S.C. 78o-3(b)(5).
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B. Self-Regulatory Organization's Statement 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 proposed rule change is effective immediately upon filing
pursuant to Section 19(b)(3)(A)(ii) of the Act \5\ and subparagraph
(f)(2) of Rule 19b-4 under the Act \6\ because the proposal is
establishing or changing a due, fee or other charge. At any time within
60 days of the filing of the proposed rule change, the Commission may
summarily abrogate such 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.
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\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act.\7\ Persons making written
submissions should file six copies thereof with the Secretary,
Securities and Exchange Commission, 450 Fifth Street, NW, Washington,
DC 20549-0609. 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 at the Commission's Public Reference Room. Copies of such
filing also will be available for inspection and copying at the
principal office of the NASD. All submissions should refer to File No.
SR-NASD-99-43 and should be submitted by October 25, 1999.
\7\ In reviewing this proposal, the Commission has considered
its potential impact on efficiency, competition and capital
formation. 15 U.S.C. 78c(f).
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For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-25700 Filed 10-1-99; 8:45 am]
BILLING CODE 8010-01-M