This rule is no longer applicable. NASD Rule 1010 Series has been superseded by FINRA Rule 1000 Series. Please consult the appropriate FINRA Rule.
Unless otherwise provided, terms used in the
Rule 1010 Series shall have the meaning as defined in
[Rule 0120].
(a) "Applicant"
The term "Applicant" means a person that applies for membership in
FINRA under
[Rule 1013] or a member that files an application for approval of a change in ownership, control, or business operations under
Rule 1017.
(b) "Associated Person"
The term "Associated Person" means: (1) a natural person registered under NASD Rules; or (2) a sole proprietor, or any partner, officer, director, branch manager of the Applicant, or any person occupying a similar status or performing similar functions; (3) any company, government or political subdivision or agency or instrumentality of a government controlled by or controlling the Applicant; (4) any employee of the Applicant, except any person whose functions are solely clerical or ministerial; (5) any person directly or indirectly controlling the Applicant whether or not such person is registered or exempt from registration under the FINRA By-Laws or NASD Rules; (6) any person engaged in investment banking or securities business controlled directly or indirectly by the Applicant whether such person is registered or exempt from registration under the FINRA By-Laws or NASD Rules; or (7) any person who will be or is anticipated to be a person described in (1) through (6) above.
(c) "Department"
The term "Department" means the Department of Member Regulation of FINRA.
(d) "Director"
The term "Director" means a member of the FINRA Regulation Board.
(e) "district"
The term "district" means a district established by the FINRA Regulation Board.
(f) "district office"
The term "district office" means an office of FINRA located in a district.
(g) "FINRA Board"
The term "FINRA Board" means the Board of Governors of FINRA.
(h) FINRA Regulation Board"
The term "FINRA Regulation Board" means the Board of Directors of FINRA Regulation.
(i) "Governor"
The term "Governor" means a member of the FINRA Board.
(j) "Interested FINRA Staff"
The term "Interested
FINRA Staff" means an employee who directly participates in a decision under
Rule 1014 or
1017, an employee who directly supervises an employee with respect to such decision, an employee who conducted an investigation or examination of a member that files an application under
Rule 1017, the District Director for the relevant district, and the head of the Department.
(k) "material change in business operations"
The term "material change in business operations" includes, but is not limited to:
(1) removing or modifying a membership agreement restriction;
(2) market making, underwriting, or acting as a dealer for the first time; and
(3) adding business activities that require a higher minimum net capital under SEC Rule 15c3-1;
(l) "principal place of business"
The term "principal place of business" means the executive office from which the sole proprietor or the officers, partners, or managers of the Applicant direct, control, and coordinate the activities of the Applicant, unless the Department determines that the principal place of business is where: (1) the largest number of Associated Persons of the Applicant are located; or (2) the books and records necessary to provide information and data to operate the business and comply with applicable rules are located.
(m) "sales practice event"
The term "sales practice event" means any customer complaint, arbitration, or civil litigation that has been reported to the Central Registration Depository, currently is required to be reported to the Central Registration Depository, or otherwise has been reported to FINRA.
(n) "Subcommittee"
The term "Subcommittee" means a subcommittee of the National Adjudicatory Council that is constituted pursuant to
Rule 1015 to conduct a review of a Department decision issued under the
Rule 1010 Series.
