June 16, 1989
TO: OPERATIONS COMMITTEE NO. 10-89
SEC RULES COMMITTEE NO. 28-89
BROKER/DEALER ADVISORY COMMITTEE NO. 27-89
TRANSFER AGENT SHAREHOLDER ACCOUNTING ADV. COMMITTEE NO. 12-89
RE: SEC APPROVES NASD PROPOSAL OF NEW REGISTRATION CATEGORY --
ADOPTING RELEASE CLARIFIES THAT MUTUAL FUND MINISTERIAL
PERSONNEL ARE EXEMPT
__________________________________________________________
The SEC has approved the proposal of the NASD to establish a new
category of registration, Assistant Representative - Order Processing.
The category is limited to accepting unsolicited customer orders on
behalf of existing accounts. The SEC published the proposal for
comment last fall. (See Memorandum to Broker-Dealer Advisory
Committee No. 16-88, Operations Committee No. 26-88, SEC Rules
Committee No. 64-88 and Transfer Agent Shareholder Advisory Committee
No. 28-88, dated October 28, 1988).
The Institute previously had filed a comment letter on the
proposal, in which it expressed concern that the new category would
encompass employees engaged solely in routine mutual fund shareholder
servicing and transfer agent operations, such as accepting telephone
purchases, exchanges and redemptions. This would require such
employees to register and take examinations. In the adopting release,
the SEC responded to these comments by stating that the proposal "is
not intended to cover such personnel" and that the "ministerial"
exemption from registration in the By-Laws of the NASD would continue
to be available.
Copies of the adopting release and the Institute's comment
letter are attached.
Craig S. Tyle
Assistant General Counsel