NASD Conduct Rule 3070 - System Changes

NASD Conduct Rule 3070 requires members to report to NASD the occurrence of 10 specified events and quarterly summary statistical information regarding written customer complaints. The information reported by members provides NASD with important regulatory information that assists with the timely identification of problem members, branch offices, and registered representatives to detect and investigate potential sales practice violations.

 

On March 12, 2005, additional fields became required in the Web-based Customer Complaint/Disclosure System. Member Firms can test the required fields by using the test web site at https://regfilingtest.nasd.com. A list of the required fields will be posted on NASD web site.

 

For questions regarding the system changes, call the NASD Help Desk at (800) 321-6273.

 

3070 Complaint Form

The following is a list of all required fields in the 3070 Complaint form. Fields with an asterisk are the new required fields.

 

Field Name:

Product Code
Problem Code
Complaint Date
Customer Name
*Contact Name
*Contact Phone Number
*Allegation Activity Dates From_____ To_____ (previously label Activity Date)
*Branch # - The Branch number is the Branch CRD number where the Rep is or was located. If the Rep works in the main office of the firm, than the user must enter "Zero" as the branch number.
*Security Description - User must enter "Not Applicable" if the complaint is not related to a specific security.
*Dispute Amount - User must enter "Zero" if not applicable.
*Total Amount -User must enter "Zero" if not applicable.
 

The following is a list of required fields if the complaint relates to a person associated with the firm:

 

Field Name: 

Rep CRD#
Rep Work City
Rep Work State
Rep Work Zip
Is Rep still employed?
Supervisor's Name
 

 

3070 Disclosure Form

The following is a list of all required fields in the 3070 Disclosure Form. Fields with an asterisk are the new required fields.

 

Field Name:

Disclosure Event Code
Discovery Date
At least one "Related to" box must be check.
*Contact Name
*Contact Phone Number
*Allegation Activity Dates From_____ To_____ (previously label Activity Date)
*Branch # - The Branch number is the Branch CRD number where the Rep is or was located. If the Rep works in the main office of the firm, than the user must enter "Zero" as the branch number.

 

The following is a list of fields that may be required based on the selected event code and/or whom the disclosure relates to:

 

Field Name: 

Customer Acct #
Customer Name
Security Description (symbol and/or name)
Product Code
*Security Description1 - User must enter "Not Applicable" if the complaint is not related to a specific security.
*Dispute Amount1 - User must enter "Zero" if not applicable.
*Total Amount1 - User must enter "Zero" if not applicable.
Rep CRD #
Rep Work City
Rep Work State
Rep Work Zip
Is Rep still employed?
Case Disposition
Relationship to Member
Party Name
Party Company Name
Explanation
Disciplinary Action
Supervisor Name
 

 

XML File Format

Since the Activity Date has now been replaced by a set of TO and FROM dates, an additional change is required for those who use the XML file format to create files and upload them through our web site. The FROM activity date will use the existing XML tag (<activity-date>). The TO activity date will use a new tag (<activity-date2>).

 

1 This field is only mandatory when Event Code 2 is selected.