Saturday, June 10, 2023
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Frequently-Asked-Questions (FAQ)

I have assembled this FAQ to help answer some of the more common questions that I receive. None of the answers to these questions should be considered legal advice. When in doubt, consult an attorney.

Q: I held the Series 7 and Series 63 back in 1987. Do I have to retest?

A: Generally, your qualifications will expire two years from your last association with a broker dealer. Rule 1031(c).

Q: Do you know of any companies where I could 'park' my series 7 & 63 for a fee.

A: Parking of licenses is a violation of NASD Rules. Specifically, Rule 1031, which states in pertinent part:

"A member shall not maintain a representative registration with the Association for any person (1) who is no longer active in the member's investment banking or securities business, (2) who is no longer functioning as a representative, or (3) where the sole purpose is to avoid the examination requirement prescribed in paragraph (c).

Q: I am a corporate finance attorney with over 18 years of fairly heavy securities regulatory work as well as a LL.M degree (masters in law) in securities regulation . . . I have been told that the NASD on occasion grants waivers to people such as me in order to obatin [sic] my registrations without examination. Is this correct, and if so, where would I inquire on this.

A: The answer to your question is governed by Rule 1070 - Qualification and Waiver of Requirements, which I quote:

" (e) The President of the Association may, in exceptional cases and where good cause is shown, waive the applicable Qualification Examination upon written request by the member, and accept other standards as evidence of an applicant's qualifications for registration. Advanced age, physical infirmity or experience in fields ancillary to the investment banking or securities business will not individually of themselves constitute sufficient grounds to waive a Qualification Examination."
So, you'd have to write the President of the Association (i.e. the NASD) and your experience may not necessarily be enough, but it could be :)

Q: I have previously submitted a job-request, info-request, or RIA-request and have yet to receive a response.

A: Each month my web page generates over 100 requests. The sponsors, employers, and material providers are becoming more picky regarding who to send information to. Unfortunately, I have no control over this. However, one suggestion is to answer the forms more professionally (which would include pasting your resume if using the job-request form). I will continue to contact employers and secure discounts on materials.

Q: I have a prior X (where X = bankruptcy, felony, etc.) Can you please tell me what I must disclose on the U-4 form?

A: U-4 and U-10 Forms can be obtained on-line from the NASD Regulation website.