The current NASD Membership Rules prescribe certain minimum content requirements for applications filed under Rule 1017 (i.e., for applications to remove or modify restrictions and applications for approval of business expansions and material changes in operations/ownership, see Rule 1017(b)(2)). While the precise information necessary to consider and render a determination on any particular application varies with the facts and circumstances of each case, experience shows that certain information is generally relevant to most applications, which is summarized in Section I. Depending on the specific nature of the application, Applicants are encouraged to supply as much of the information identified in Section I as relevant, together with the application and information required by Rule 1017. In general, items A through D of Section I are relevant to most applications for approval of business expansions or material changes in operations. Most applications for removal or modification of restrictions will entail review of the information listed in sub-sections A through C and E of Section I and, for applications involving markets made, sub-section D as well.
Section II of the Guide consists of a series of sub-sections outlining information most commonly requested by FINRA staff to commence its review of typical applications for business expansions. This section is divided by subject matter, with each sub-section devoted to a discrete business activity. Applicants are encouraged to supply with their initial application, as much information and documentation pertaining to the proposed expansion as possible.
