NASD Rule 3070 Disclosures and Complaint Filings
Members are required to report to FINRA certain specified events, also known as "Ten Disclosure Events" pursuant to NASD Rules 3070(a) and (b), as well as to report to FINRA statistical and summary information regarding customer complaints pursuant to NASD Rule 3070(c). These reporting requirements are in addition to members' reporting requirements through Forms U4, U5, and BD filings, and help FINRA with the timely identification of matters of regulatory concern in line with our goal of enhancing risk based and focused approaches to regulation.
Members must submit disclosure events and customer complaints electronically via NASD's 3070 System. The 3070 System can be accessed directly through the web link https://RegFiling.FINRA.org. Any questions, concerns, or entitlement issues regarding form filing applications can be directed to (800) 321-6273.
Members that are dually registered with the NYSE are exempt from NASD Rules 3070(a), (b) and (c) filing requirements if they file substantially similar reports with the NYSE pursuant to NYSE Rule 351.
Questions regarding the filing information can be directed to the appropriate District Office. Business and Technical questions can be directed to (800) 321-6273.
Q. When is a NASD Rule 3070(a) disclosure considered late and what is the "Discovery Date" field in the 3070 System?
A disclosure pursuant to NASD Rule 3070(a) is reportable within 10 business days after the member knows or should have known of the existence of any of the conditions set forth in NASD 3070(a). Filing after the 10 business days is considered a late filing. The "Discovery Date" field is the date the member knows or should have known of the existence of a NASD Rule 3070(a) disclosure event.
Q. When should we submit our firm's quarterly customer complaints?
Customer complaint information must be filed by the 15th calendar day from the end of the calendar quarter, and such information may be entered and submitted at any time within that period. Any customer complaint information submitted after the 15th calendar day from the end of the calendar quarter is considered a late filing.
Q. Our firm was a defendant in a securities-related civil litigation that we settled for an amount that exceeds the threshold dollar amount in NASD Rule 3070(a)(7). For purposes of disclosing this event through the 3070 system, is the "Discovery Date" the date we knew or should have known that we were a defendant in the case, or is it the date we knew or should have known of the settlement?
The "Discovery Date" is the date the firm knew or should have known of the settlement.
Q. What is the difference between the "edit filing" function and "amend filing" function?
"Edit filing" can be performed only when the filing is still in the "draft" mode. Once a filing is submitted and a member wants to make certain changes to it, the firm must use the "amend filing" function and re-submit that filing. The amended filing will be version number "2".
Q. What kind of information is expected to be placed in the "Comment" field (which is an optional field)?
Any additional information regarding a customer complaint or disclosure event that a member believes may be useful to [the public or] regulators.
Q. What is the difference between the "Filing #" and the "Complaint #" fields?
"Filing #" is generated automatically by the system. "Complaint #" (or "Disclosure #") is a firm's own numbering system (if it has one) for tracking purposes.
Q. Where does a filing go if a member enters the information, closes the form, and fails to hit the "submit" button?
It will be stored in the "Draft" folder until submitted.
Q. Can a filing be submitted if any of the required fields are left blank?
No, the system will display an error message and will not submit the filing if any of the required fields are not entered.
