Did your firm renew for 2007?
Now that renewal season is over, can you confirm your firm and its advisor representatives were properly renewed for 2007? It seems like every year there are always a handful of firms that fail to submit renewal fees through the IARD system in a timely fashion. Therefore, even if you think the renewal payment was sent in time, please make sure your firm retrieves the Final Renewal Statement and confirms it is renewed from 2007. The Final Renewal Statement will indicate one of the following.
1. Paid in Full - If your firm's renewal statement has been paid in full, your renewal process is complete. You should print a copy of the Final Renewal Statement and file it with your firm's books and records.
2. Outstanding Balance Due or Refund - If your firm paid its Preliminary Renewal Statement in full, but added or removed a state registration or advisor representative during the time period between the posting of Preliminary Renewal Statements and the 2006 shut down period, then your firm will either have additional fees due or receive a credit. If additional fees are due, the fees should be submitted as soon as possible. If your firm received a refund, the credit will automatically be transferred to your firm's Daily Account.
3. Failed to Renew - If a firm's Final Renewal Statement indicates Failed to Renew, the NASD did not receive the total balance due on the Preliminary Renewal Statement prior to the December deadline. In these cases, it is standard operating procedure for the NASD to automatically terminate all advisor representatives of the firm. In addition, over thirty states have given the NASD the authority to automatically terminate an advisor firm that does not pay its renewal fees in full. If your firm's statement indicates Failed to Renew, you will need to contact each state jurisdiction immediately to determine an appropriate course of action.
Finally, it is important to make sure your firm submits any required documentation directly to the states where the firm is registered.
If your firm did fail to renew through IARD system or you have questions on any state renewal requirements, call us immediately so we can provide assistance to get your firm in good standing.
1. Paid in Full - If your firm's renewal statement has been paid in full, your renewal process is complete. You should print a copy of the Final Renewal Statement and file it with your firm's books and records.
2. Outstanding Balance Due or Refund - If your firm paid its Preliminary Renewal Statement in full, but added or removed a state registration or advisor representative during the time period between the posting of Preliminary Renewal Statements and the 2006 shut down period, then your firm will either have additional fees due or receive a credit. If additional fees are due, the fees should be submitted as soon as possible. If your firm received a refund, the credit will automatically be transferred to your firm's Daily Account.
3. Failed to Renew - If a firm's Final Renewal Statement indicates Failed to Renew, the NASD did not receive the total balance due on the Preliminary Renewal Statement prior to the December deadline. In these cases, it is standard operating procedure for the NASD to automatically terminate all advisor representatives of the firm. In addition, over thirty states have given the NASD the authority to automatically terminate an advisor firm that does not pay its renewal fees in full. If your firm's statement indicates Failed to Renew, you will need to contact each state jurisdiction immediately to determine an appropriate course of action.
Finally, it is important to make sure your firm submits any required documentation directly to the states where the firm is registered.
If your firm did fail to renew through IARD system or you have questions on any state renewal requirements, call us immediately so we can provide assistance to get your firm in good standing.
posted by bhill at 11:45 AM
EIAs in Spotlight
For those of you following the debate over whether an equity-indexed annuity is a security or insurance product, there's an article on the subject in the January issue of Registered Representative magazine.
As we've discussed before, many state securities regulators are classifying an insurance licensed only agent selling equity-indexed annuities ("EIAs") as an unregistered investment advisor if the insurance licensed only agent discusses the general stock market with clients and then receives indirect compensation such as an EIA commissions.
Please contact us if you're insurance only agent interested in registering as an investment advisor.
As we've discussed before, many state securities regulators are classifying an insurance licensed only agent selling equity-indexed annuities ("EIAs") as an unregistered investment advisor if the insurance licensed only agent discusses the general stock market with clients and then receives indirect compensation such as an EIA commissions.
Please contact us if you're insurance only agent interested in registering as an investment advisor.
Labels: Equity-Indexed Annuities
posted by bhill at 11:53 AM
