Beginning Tuesday, January 3, 2006 advisor firms will be able to retrieve their Final Renewal Statements via the Web CRD/IARD system. It is important that all advisor firms review their Final Renewal Statement to ensure its accuracy. The Final Renewal Statement will indicate one of three things.
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 you firm paid its Preliminary Renewal Statement in full, but added or removed a state registration or advisor representative during the time period from November 21 through December 21, then your firm will either have additional fees due or receive a credit. If additional fees are due, the fees must be submitted to your Renewal Account by February 1. 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 14 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.
In addition to the Final Renewal Statements availability on January 3, the Web CRD/IARD form filing functionality will resume and advisor firms will be able to submit any pending Form U4 and Form ADV filings. Regulatory authorities will also be able to resume approving registrations of advisor firms and representatives.
Additional information about the 2006 Renewal Season can be attained at the IARD website.
Posted by Bryan Hill