FINRA has amended Rules 1022 and 1032 to introduce a new registration category for representatives engaged in investment banking activities. Effective November 2, 2009, amendments to NASD Rules 1022 and 1032 will require individuals whose activities are limited to investment banking and principals who supervise such activities to pass the new Limited Representative – Investment Banking Qualification Examination, also known as the Series 79 Exam. FINRA has developed this exam to provide a more targeted assessment of the job functions performed by the individuals that fall within the registration category.
What does this mean for you? If you currently are a Series 7 registered representative and engage in your firm’s investment banking business, you will be able to “opt-in” for this new registration category. The opt-in period is for a limited six-month time from November 2, 2009 through May 3, 2010. To do this, you must file a U4 amendment to add the Series 79 registration to your U4.
After November 2, 2009, newly hired representatives who do not already have the Series 7 registration can request the Series 79 registration, in lieu of the Series 7, if they will be engaged in only investment banking.
NASD Rule 1032(i) requires an associated person to register with FINRA as a Limited Representative – Investment Banking (Investment Banking Representative) and pass a corresponding qualification examination if such person’s activities involve:
- advising on or facilitating debt or equity securities offerings through a private placement or a public offering, or
- advising on or facilitating mergers and acquisitions, tender offers, financial restructurings, asset sales, divestitures or other corporate reorganizations or business combination transactions.
The registration category does not cover individuals whose investment banking work is limited to public (municipal) finance or direct participation programs as defined in NASD Rule 1022(e)(2).
As a Compliance Partner, we will file these amendments for you and will be in contact with you again closer to November 2 to determine which representatives will need to carry this registration.
If you have questions regarding the new Series 79 registration or other compliance matters, please feel free to contact your account manager at 603-434-3594.
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