Commemorative Examination Certificates And Plaques
 



 

June 29, 2001

 

NASDR has been informed that registered representatives are being solicited to purchase certificates that commemorate passing NASD and state examinations. This Member Alert is to remind firms of our position regarding the display of such certificates or plaques.

  • The Certificates/Plaques
    The certificates and plaques are offered by private companies to securities professionals who have passed qualifications exams and have been issued a CRD number. The solicitations liken these certificates to those received by physicians, attorneys, and CPAs in that they are used to gain respect and credibility from clients.

  • The Problem
    As stated in the
    September 1998 Regulatory & Compliance Alert, NASD Regulation believes that such certificates could be misused by registered representatives or misunderstood by the public. Passing a qualification exam is just one step in the registration process; customers may wrongly assume that it is the only step. Furthermore, registration status may change; a registration may be suspended, canceled, or voluntarily terminated, but the presence of a certificate commemorating the passage of a qualification examination may incorrectly suggest otherwise.

  • The NASDR Position
    Because of potential problems and confusion with respect to these certificates, NASD Regulation does not recommend or encourage the use or display of such certificates or plaques.