NASD Notice to Members 03-42 - July 2003

SEC Approves Proposed Changes to Forms U4 and U5; Implementation Date: July 14, 2003

Executive Summary

The Securities and Exchange Commission (SEC) has approved changes to the Form U4 (Uniform Application for Securities Industry Registration or Transfer) and Form U5 (Uniform Termination Notice for Securities Industry Registration). The changes: (1) add new disclosure questions to the "Regulatory Disciplinary Actions" subsection of Section 14 (Disclosure Questions) of the Form U4 and a new corresponding Disclosure Reporting Page (DRP), to elicit information regarding events that might cause a person to be subject to a statutory disqualification as a result of new disqualifying events created by the Sarbanes-Oxley Act of 2002; (2) add new disclosure question Question 7F and corresponding DRP on the Form U5 to mirror Question 14J on the Form U4 relating to terminations for cause; (3) streamline the language associated with Form U4 questions relating to fingerprinting requirements; and (4) make other non-substantive technical, clarifying, and conforming revisions.

 

The revised forms will be implemented on July 14, 2003. Copies of the new forms are available on the NASD Web Site at www.finra.org.

 

Questions concerning this Notice may be directed to the Gateway Call Center at 301-869-6699.