Finra Continuing Membership Agreement

For example, such a change in the product line would require a CMA (and prior approval from FINRA) in the event of cancellation or modification of a limitation of the affiliation agreement; Your company has become for the first time the market creator, songwriter or distributor; or if the new products required higher net capital. A CMA may also be required if the size of your business changes, including the number of related persons and branches. If you are considering such changes, please read section 1017 carefully. If you have any further questions, please contact your FINRA district office or coordinator. According to Regulatory Notice 12-32, finra assesses a fee for continuing membership applications (CMA). To determine the tax charged to your business, please read the regulatory notice or access the spreadsheet. In accordance with Rule 1015 of the NASD, the applicant may submit a written request for review of the decision to FINRA`s National Adjudicator Council (NAC) within 25 days of notification of the accession decision. FINRA decides whether all such applications are approved, denied or approved with restriction in accordance with Rule 1017. In these applications, the overt idea is an applicant`s ability to continue to meet the membership standards contained in NASD (Department of Decision) Rule 1014. If you have any questions or suggestions regarding this guide, please contact your business coordinator, your local district office or the Sales Practice Policy Group at (202) 728-8221. A14. Rule nasD 1017 (g) (2) requires finRA to make a written decision regarding MACs "within 30 days of the end of the hearing of members or the filing of additional information or documents, depending on their subsequent value. If the service does not require the applicant to participate in a consultation of members or requests additional information or documents, the service gives a written decision within 45 days of filing the application referred to in point (a)" Note that Rule 1017(g)(2) provides that the CMA verification procedure is completed within 180 days of filing a DAC.

A11. A company may use the safe harbor provisions of IM-1011-1 if it has the right to do so. If a company or a company`s principal has a disciplinary history in the last five years (as defined in IM-1011-1) or if the company is subject to a restriction in its affiliation agreement, it cannot use safe harbor. Note that the Safe Harbor rules only apply to the business extensions listed in the table below. Note that each CMA, since each application for continuous membership is unique, needs different supporting documents, specific to the facts and circumstances of this CMA. According to Rule 1014, a decision on an application for membership must be taken within 30 days of the end of the membership interview or after the submission of additional information or documents, depending on the subsequent amount. Overall, FINRA is required to make a written decision on the application within 180 days of the filing date or other date on which the applicant will end and have given its consent. Here are some important references to appealing a membership decision: Companies must submit an application for permanent membership (CMA form) when attempting to change their business (described below). You must also submit a CMA if you are trying to change or remove restrictions previously imposed in an affiliate agreement.

This is all part of the process of updating a business registration. This section contains information on the types of membership decisions made by FINRA staff following the application review, the date of these decisions and related considerations. Question 7. If a company that currently operates without a written affiliation agreement adds its activities, must it terminate its activities in accordance with NASD Rule 1017? A7. Depending on the facts and circumstances, a complement to a company`s activities may or may not be essential, whether or not the company works with a written affiliation agreement. . . .