Regulation Form Filing: New Firm Contacts Screen

Regulation Form Filing is a Web-based system for various applications used by member firms to report regulatory information to NASD Regulation. The applications include: FOCUS, Blue Sheets, Customer Complaints, Reg T/15c3-3 Extension Requests, and Short Interest Reporting.

Form Filing Account Administrators will be responsible for providing and maintaining the new Firm Contacts fields with the most current and accurate information.

Bank Notification Used In Conjunction With A Special Reserve Bank Account For The Exclusive Benefit Of Customers

In order to protect customer cash held at a clearing firm, SEC Rule 15c3-3 requires that customer cash and other customer credits be deposited into a Special Reserve Bank Account for the Exclusive Benefit of Customers (Reserve Account). This requirement serves as a safeguard for investors so that the clearing firm does not utilize these funds for its own use.

Submission of PAIB Computation in FOCUS Filings

Beginning with the June 2002 FOCUS Report, members that hold assets of other member firms and compute a PAIB Reserve with respect to such assets will need to include the PAIB Reserve computation with their regular FOCUS filing. The PAIB Reserve computation will be included as page 9B in the Part II FOCUS filing.

Revision to Net Capital Treatment of Clearing Agreement Penalty Clauses

In the Regulatory Short Takes section of the Spring 2000 Regulatory & Compliance Alert, Volume 14-1, NASD indicated that all or a portion of the amount specified in a clearing agreement as a termination fee would be treated as a charge to the introducing firm's net capital. The Question and Answer included in the Regulatory Short Take was as follows:

Q:   Is the penalty amount in a penalty clause contained in a clearing agreement a charge to net capital?

Update to Web CRD Firm Notification Functionality

Important Information Regarding Annual Audited Report

Under Securities and Exchange Commission (SEC) Rule 17a-5, NASD members must file with NASD an Annual Audited Report not more than 60-calendar days after the date selected for their fiscal year end.

Reminder to NASD Members - Transactions with NASD and American Stock Exchange Employees

NASD Reminds Firms of E-Mail Address Established to Report System Outages to Market Regulation Department

New Series 51 Examination

This article is intended to clarify a factual reference to SEC Rule 17a-4 (f)(2)(i) previously reported in the Fall 2000, Volume 14.3, of the NASD Regulatory & Compliance Alert.

SEC Rule 17a-4 (f)(2)(i)

Q:   If a broker/dealer intends to store records using electronic storage media, can a third party vendor provide services to a broker/dealer if the third-party vendor is an affiliated company?