[13337]
April 3, 2001
TO: INVESTMENT ADVISERS COMMITTEE No. 10-01
SEC RULES COMMITTEE No. 33-01
SMALL FUNDS COMMITTEE No. 3-01
STATE SECURITIES MEMBERS No. 4-01
RE: NASAA PUBLISHES REVISED FORMS U-4 AND U-5 FOR COMMENT
In anticipation of the rollout of the next phase of Investment Adviser Registration
Depository (IARD), which will enable the system to process applications for registration filed by
investment adviser representatives, the North American Securities Administrators Association
(NASAA) has proposed revisions to Form U-4, Uniform Application for Securities Industry
Registration and Transfer, and Form U-5, Uniform Termination Notice for Securities Industry
Registration. (The functionality allowing the IARD to accept representatives’ applications is
expected to be deployed in July 2001.) Though these forms have been revised for use with the
IARD system, the revised forms will also be the forms used to register broker-dealer
representatives through the CRD system.
NASAA has requested comments on the proposed revisions to the forms by April 20,
2001. Persons with comments they would like the Institute to consider including in the
Institute’s comment letter should provide them to the undersigned no later than Monday,
April 16, 2001. Comments may be submitted by phone
(202-326-5825), fax (202-326-5839) or e-mail (tamara@ici.org).
Though the proposed forms are substantially longer than the current version of these
forms, for the most part, they are substantively identical to the forms currently in use. The
increased length of these forms results from their conversion to a more user-friendly format for
electronic filing. (For example, the new forms will provide drop-down pick lists that the
applicant can use when filling out the form.) In addition, while the current forms include one
Disclosure Reporting Page (DRP), which is used irrespective of the nature of the disciplinary
event reported, proposed Forms U-4 and
U-5 have seven and five different types of DRPs, respectively, one for each of the types of
disciplinary events that must be disclosed on the form.
The technical changes proposed to Form U-4 include: boxes for the applicant to indicate
whether the application is filed with a jurisdiction to obtain registration as a broker/dealer
agent or an investment adviser representative or both (Item 5); more questions relating to
2multiple affiliations (Item 6); more specific information regarding the examinations offered by
the various self-regulatory organizations (Item 7); and extending the period of disclosure of
other names or aliases used by the applicant from “since adulthood” to “since the age of 18”
(Item 10). The Form U-5 has been revised to distinguish termination of registration as a
broker/dealer agent from termination as an investment adviser representative and to add more
options with respect to partial terminations. For example, it would permit terminations of
different types of registration categories (e.g., the registrant could terminate its registration as a
Series 7 representative while maintaining its registration as a Series 24 principal) and it would
permit the registrant to terminate with one or more of several affiliated firms, while still
maintaining its registration with at least one of the firms. (See Items 5.A. and 6, respectively.)
In addition, the execution statements on both forms have been revised so that typing the
name of the applicant and the firm’s appropriate signatory on the electronic version of the form
constitutes a valid signature. According to the instructions to the forms, “By typing a name in
this field the signatory acknowledges and represents that the entry constitutes in every way, use
or aspect, his or her legally binding signature.”
A copy of proposed Form U-4 and U-5 is attached. The forms may also be accessed
through the NASAA web site at nasaa.org.
Tamara K. Reed
Associate Counsel
Attachments
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please call the ICI Library at (202) 326-8304 and request the attachments for memo 13337. ICI Members may retrieve
this memo and its attachments from ICINet (http://members.ici.org).
Attachment no. 1 (in .pdf format)