NASD directed all firms that processed more than a minimal amount of mutual fund transactions using an automated process to conduct a self-assessment of their mutual fund transactions in 2001 and 2002 and the sales discounts provided, and to submit the results to NASD. As of July 30, 2003, the 642 firms listed below submitted assessment results to NASD.
The Joint NASD/Industry Task Force recommended two changes to mutual fund confirmations that are intended to help investors determine whether they received all the breakpoints discounts to which they were entitled on each mutual fund transaction.
The Joint NASD/Industry Task Force urges mutual funds to include these definitions in their prospectuses and other relevant materials as soon as is reasonably practicable.
Questions and answers regarding the Mutual Fund Breakpoint Assessment
Registration Code Classifications
Test/CE session administration procedures at all international locations are, for the most part, the same as for tests/CE sessions administered domestically.
NASD, in conjunction with an industry working group, developed the outline provided below in response to Recommendation J of the Report of the Joint NASD/Industry Task Force on Breakpoints, which recommended that member firms provide enhanced training regarding mutual fund breakpoint discounts.
This outline is intended as a model of the critical topics that firms should address in training
At the request of the Securities and Exchange Commission ("SEC"), NASD convened and led a Joint NASD/Industry Breakpoint Task Force, with representatives from, among others, Investment Company Institute ("ICI"), Securities Industry Association ("SIA"), National Security Clearing Corporation ("NSCC"), broker/dealers, mutual funds, and transfer agents, to examine the difficulties that the financial industry experienced delivering breakpoint discounts on Class A mutual fund share sales and to develop recommendations to facilitate the complete and accurate delivery of breakpoint discounts in the future.
SIPC Materials
Securities Investor Protection Corporation (SIPC) publication and member identification materials can be purchased on the Media Source webstore.
Fingerprinting Materials
If you need a supply of fingerprint cards, FINRA-specific fingerprint cardstock may be purchased from Sterling for $14.00 (includes 25 cards with shipping & handling). To order FINRA-specific
Every broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934 (SEA) is required to file an annual report as specified under SEA Rule 17a-5(d). Members must submit their annual reports to FINRA in electronic form through FINRA’s Firm Gateway. See below for further information on FINRA Firm Gateway.
