NASD Notice to Members 01-39 - June 2001

SEC Approves Proposed Rule Change Establishing a New Limited Registration Category for Private Securities Offerings; Related Qualification Examination (Series 82) is Effective

Executive Summary

On May 15, 2001, the Securities and Exchange Commission (SEC) approved amendments to National Association of Securities Dealers, Inc. (NASD®) Rule 1032 to establish a new registration category, Limited Representative-Private Securities Offerings. This new registration category is for any associated person of a member whose investment banking and securities business is limited solely to effecting sales of private securities offerings. Registration under this new category will provide an alternative to registration as a General Securities Registered Representative (Series 7) or as a Corporate Securities Limited Representative (Series 62) for any individual who functions solely as a private securities offering representative. Persons seeking to register under this new category will need to pass a new qualification examination, the Limited Representative-Private Securities Offerings Qualification Examination (Series 82), which is now available.

 

The effective date of the new registration category is May 12, 2001. The SEC's extension of time for banks to comply with the broker/dealer provisions of the Gramm-Leach-Bliley Act of 1999 (GLBA) as set forth in the SEC's Interim Final Rule does not change the effective date of the new registration category.

 

Questions concerning this Notice to Members may be directed to one of the following persons in the NASD Regulation Testing and Continuing Education Department: Karen Bescher at (240) 386-4677; Carole Hartzog at (240) 386-4678; or Nicole Hillman at (240) 386-4681. Questions also may be directed to one of the following persons in the NASD Office of General Counsel: Gary Goldsholle at (202) 728-8104 or Kosha Dalal at (202) 728-6903.