Additional Arbitration Filing Fee and Advertising Service Charge

TO: All NASD Members and Other Interested Persons

EXECUTIVE SUMMARY

The NASD has adopted an arbitration filing fee and advertising service charge that will be imposed on certain arbitration Submission Agreements, advertisements, sales literature, and other such material received by the NASD on and after February 22, 1988.

The NASD Board of Governors believes the arbitration filing fee and advertising service charge are necessary to reduce the NASD's reliance upon general assessments and to institute a user-based fee and service charge to assist the NASD in recouping a portion of costs incurred in operating its arbitration facilities and reviewing advertising, sales literature and other such material.

ARBITRATION FILING FEE

An amendment to the NASD Code of Arbitration Procedure adds Section 44, which establishes a non-refundable filing fee of $500.00 imposed on all members for each arbitration Submission Agreement filed with the NASD against a non-member on and after February 22, 1988. Payment may be made by a check or money order payable to NASD, Inc. Any material submitted without the fee will be returned to the member and any applicable filing requirement will not be considered fulfilled. The rule provides:

Code of Arbitration Procedure

Section 44 - Filing Fee for Members

A member firm shall, when filing a Submission Agreement against a non-member, pay a non-refundable filing fee of $500.00. This fee shall be in addition to all other fees, deposits, or costs which may be required.

Questions concerning this rule can be directed to Ms. Deborah Masucci, Director, NASD Arbitration, at (212) 839-6246. (On February 22, 1988, the Arbitration Department will relocate and the new telephone number will be (212) 858-4000.)

ADVERTISING SERVICE CHARGE

An amendment to Schedule A to the NASD By-Laws adds Section 13. This section establishes a service charge of $15.00 for each and every item of advertisement, sales literature, and other such material filed with or submitted to the NASD on and after February 22, 1988, except for items that are filed or submitted in response to a written request from the NASD Advertising Department issued pursuant to Article III, Section 35(c)(6) of the NASD's Rules of Fair Practice. Payment may be made by a check or money order payable to NASD, Inc. Any material submitted without the fee will be returned to the member and any applicable filing requirement will not be considered fulfilled. If multiple copies of identical material are submitted as one package, one filing has been made and one $15.00 fee should be paid. If several distinct items are submitted in one package, a separate $15.00 fee should be included for each individual piece. The rule provides:

NASD By-Laws Schedule A

Section 13 - Service Charge for Advertisement, Sales Literature, and Other Such Material Filed or Submitted

There shall be a service charge of $15.00 for each and every item of advertisement, sales literature, and other such material filed with or submitted to the Association, except for items that are filed or submitted in response to a written request from the Association's Advertising Department issued pursuant to Article III, Section 35(c)(6) of the Association's Rules of Fair Practice.

* * * * *

Questions concerning this notice can be directed to Ms. R. Clark Hooper, Director, NASD Advertising, at (202) 728-8330.

Sincerely,

Frank J. Wilson
Executive Vice President and General Counsel