Revisions to By-Laws Regarding the Regulatory Fee and the SEC Section 31 Transaction Fee

NASD has filed with the SEC a proposed rule change to Schedule A to NASD By-Laws to amend its member regulatory pricing structure. Under the current structure, three types of fees and assessments are used to fund NASD’s member regulatory activities: Regulatory Fee, Personnel Assessment, and Gross Income Assessment. The proposed restructuring is comprised of four important amendments: 1) eliminate the Regulatory Fee; 2) institute a new transaction-based Trading Activity Fee similar to the SEC’s Section 31 Fee; 3) increase the rates assessed to member firms under the Personnel Assessment; and 4) implement a simplified three-tiered flat rate for the Gross Income Assessment and eliminate current deductions and exclusions. This rule filing is a part of a package of two separate yet related rule filings being submitted to the SEC as a result of a review of the overall NASD pricing structure and is intended to address the first two amendments to NASD pricing restructuring by eliminating the Regulatory Fee and instituting a new transaction-based Trading Activity Fee.

TitleFormat - SizeStatus
Text of proposed rule changePDF - 67.3 KB
Amendment No. 1 to Proposed Rule ChangePDF - 47.28 KB
Approval OrderPDF - 60.76 KB