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Additional Material for Release No. 34-41594:
Appendix A: Technical, Formatting, and Conforming Amendments to 1996 Form BD

The Commission is adopting the following technical, formatting, and conforming amendments to 1996 Form BD:

A. Use of Italics for Defined Terms

The amendments will italicize terms that are defined in Form BD's "Explanation of Terms." Defined terms are being italicized throughout Form BD as an aid to filers. This is also consistent with Web CRD's Forms U-4 and U-5 and with Interim Form BD.

B. Form BD Instructions

The following portions of the Instructions to Form BD will be changed as noted:

Instruction A. General Instructions, 5. Federal Information Law and Requirements – The amendment to Instruction A.5 will correct an oversight by replacing "This information contained . . ." with "The information contained . . ."
Instruction B. Paper Filing Instructions, 1. Format ("Instruction B.1") – The amendments to Instruction B.1 will add the following explanatory language under section "A": "A full paper Form BD is required when the applicant is filing with the CRD for the first time. In addition, some jurisdictions may require a separate paper filing of Form BD. The applicant should contact the appropriate jurisdiction(s) for specific filing requirements." This language makes clear that initial Form BD filings must be submitted on paper. Therefore, sections A-D in the 1996 Form BD will be reformatted as sections B-E. In addition, revised section B will be amended by removing all language following "Attach an Execution Page (Page 1) with original manual signatures to the initial Form BD filing . . ." The removed language pertains to amendments to Form BD and is no longer relevant under Paper Filing Instructions. Moreover, the amendments will correct an oversight in Instruction B.1.B. by adding a period at the end of the sentence.
Instruction B. Paper Filing Instructions, 3. Schedules A, B, and C ("Instruction B.3") – The amendments to Instruction B.3 will italicize the term "applicant" because it is defined under Form BD's "Explanation of Terms." The amendments will also conform this instruction to changes that have been proposed by the NASD in Form U-4.¹ Specifically, "Form U-4 Item 20A or 20B" will be replaced with "Form U-4 Item 20 or 21."²
Instruction C. Electronic Filing Instructions, 3. Direct and Indirect Owners ("Instruction C.3") – The amendments to Instruction C.3 will replace the phrase "Applicant must complete the Direct Owners and Executive Officers screen³ and the Indirect Owners screen when filing an initial application" with "Amend the Direct Owners and Executive Officers screen and the Indirect Owners screen when changes in ownership occur." This change is necessary because initial applications of Form BD will only be filed on paper and, therefore, all references to "screen" amendments are only appropriate when Form BD is being amended.

The amendments to Instruction C.3 will also replace screen references applicable to Redesigned CRD with references compatible with Web CRD. The phrase "Personal Data screen, the Residential History screen and the Employment and Personal History screen of Form U-4" will be replaced with "page 2 of Form U-4." In addition, the sentence "The applicant broker-dealer must be listed on the Other Business screen of Form U-4" will be replaced with "The applicant broker-dealer must be listed in Form U-4 Item 20 or 21." These changes are necessary because the Personal Data, Residential History, Employment, Personal History, and Other Business screens have been removed from Form U-4. The information elicited in these screens will now be found on Web CRD's page 2 of Form U-4. In particular, the information elicited on the "Other Business" screen will now be found in Form U-4 Item 20 or 21 in Web CRD.

CRD Mailing Address

The amendments will replace the P.O. Box number "9401" with "9495." P.O. Box 9401 will remain active initially but will eventually be phased out.

C. Form BD's Explanation of Terms

The amendments to Form BD's "Explanation of Terms" will italicize all defined terms found within this section.⁴ The specific changes to each of the affected Instructions are:

1. General ("Section 1"), Control – The term "person" will be italicized.
3. For the Purpose of Item 11 and the Corresponding Disclosure Reporting Pages (DRPs):
- Control Affiliate – The terms "person,""applicant," and "control" will be italicized.
- Foreign Financial Regulatory Authority – The terms "self-regulatory organization" and "investment or investment-related" will be italicized.
- Proceeding – The terms "self-regulatory organization," "foreign financial regulatory authority," "felony," and "misdemeanor" will be italicized.
- Felony – The terms "jurisdictions," "felony," and "misdemeanor" will be italicized.
- Misdemeanor – The terms "jurisdictions," "felony," and "misdemeanor" will be italicized.
- Minor Rule Violation – The term "self-regulatory organization" will be italicized.

D. Form BD – Main Section

The main section of Form BD will be amended as follows:

Warning – The term "jurisdictions" will be italicized because it is a defined term under Form BD's Explanation of Terms.
Item 1.D. – The amendments will replace, "If this filing makes a name change on behalf of the applicant, enter the previous name and specify whether the name change is the r applicant name (1A) or r business name (1C)," with, "If this filing makes a name change on behalf of the applicant, enter the new name and specify whether the name change is the r applicant name (1A) or r business name (1C)." Applicant is a defined term under Form BD's "Explanation of Terms," and, therefore, will be italicized. The change from "previous" to "new" will preserve the integrity of the broker-dealer name-change approval process by allowing Items 1A and 1C to remain as read-only fields. Name change requests will appear in Item 1D. This change will clarify that a broker-dealer name-change request must be approved by the NASD before it becomes effective.
Item 2.- SRO. – "AMEX," which is now the term commonly used to identify the American Stock Exchange, will replace "ASE." Similarly, "PCX," which is now the term commonly used to identify the Pacific Stock Exchange, will replace "PSE."
Item 5. – The amendments will replace "If `Yes,' complete appropriate items on Schedule D, Page 1, Section III," with "If `Yes,' contact CRD prior to submitting form; Complete appropriate items on Schedule D, Page 1, Section III." The additional language is necessary because succession filings are often completed incorrectly. The change is intended to help eliminate incorrect filings by requiring broker-dealers to discuss their succession filings prior to submission.⁵
Item 11.E.2. – The amendments will italicize the word "involved," a defined term.

E. Disclosure Reporting Pages of Form BD

1. Separation of Financial DRP 2

The amendments will divide the Financial DRP 2 (Bonding Payout and Judgments/Liens) into two separate DRPs – one to report information about actions taken by a bonding company against the applicant and the other to report the applicant's unsatisfied judgments or liens. Therefore, Form BD will include six DRPs: Criminal, Regulatory, Civil Judicial, Bankruptcy and SIPC, Bond, and Judgments/Liens.

2. Amendments Applicable to All DRPs

The amendments will also make certain changes that are common to all six DRPs.

a. General Instructions

The "General Instructions" section will be amended by adding the clarifying phrase "Use a separate DRP for each event or proceeding. An event or proceeding may be reported for more than one person or entity using one DRP. File with a completed Execution Page." The General Instructions will also be amended by adding, "Documents will not be accepted as disclosure in lieu of answering the questions on this DRP." These amendments were established in Interim Form BD and have proved successful in clarifying for applicants what information is needed for DRP submissions.

b. Part I Split Into Two Sections

The amendments will split Part I into two parts.⁶ Part I.A will prompt the applicant to indicate for whom the DRP is being filed ("The Applicant," the "Applicant and one or more control affiliates," or "One or more control affiliates"). Part I.B. will ask the applicant whether the control affiliate for which the DRP was filed has already submitted a DRP (either with Form U-4 or Form BD). These amendments to Part I were also established in Interim Form BD and have been successful in eliciting accurate responses from applicants. These changes are to specify whether the control affiliate is registered and whether the control affiliate is a firm or individual. In addition, the terms "applicant" and "control affiliate" will be italicized in Part I of all DRPs.

c. Clarification of "Control Affiliate" Language

The amendments will add clarifying language to Part I (revised Part I.A) of all DRPs.⁷ The amendments will add these sentences: "If this DRP is being filed for a control affiliate, give the full name of the control affiliate below (for individuals, Last name, First name, Middle name). If the control affiliate is registered with the CRD, provide the CRD number. If not, indicate `non-registered' by checking the appropriate checkbox."

d. Removal of Unaffiliated Entities

The amendments will also amend Part I (revised Part I.A) to add the phrase "¨ This DRP should be removed from the BD record because the control affiliate(s) are no longer associated with the BD."⁸ This amendment will keep a broker-dealer's registration updated by removing entities that are no longer affiliated with it from the current file. This information, however, will not be deleted. Rather, it will be stored as part of the broker-dealer's historical record, which could be searched by regulators.

3. Amendments Applicable to Particular DRPs

There are also amendments that are unique to particular DRPs. These are discussed below in the order in which they appear in (paper) Form BD:⁹

a. Criminal DRP – Parts I and II

The amendments will restructure Parts I and II of the 1996 Form BD Criminal DRP as Part II.1-5 and make the following specific changes:

Part I of old Form BD asks whether the control affiliate is involved in an investment -related business. This question will now be asked under Part II.1. This amendment will clarify the relationship of the applicant or control affiliate to the organization against which charges were brought. This change will make the Form BD Criminal DRP consistent with the Form BD Civil Judicial DRP and the counterpart Form U-4 DRPs.
"Part II.1. Formal charges were brought in" will be renumbered as "Part II.2. Formal charges were brought in." The defined terms "applicant" and "control" will be italicized.
"Part II.2. Charge Detail Disclosure" will be renamed and renumbered as "Part II.3. Event Disclosure Detail." Part II.3 will also now include Text Boxes. This change will request information regarding an entire reportable event (rather than on a charge-by-charge basis), and provide the applicant with a Text Box in which to describe specific charges that arose out of the event. This amendment will keep information pertaining to a single event in one search category, which should provide regulators with more accurate and complete search results.
Revised Part II.3 will be divided into Parts II.3.A – E in order to elicit more detailed information and to categorize information for easier retrieval. The date that the applicant was first charged with an offense will be placed under Part II.3.A. The applicant will also have the option to estimate the date it was charged rather than provide the specific date. An accompanying Text Box will allow the applicant to explain why the date is estimated. This amendment responds to industry concerns that a broker-dealer will, in effect, be making a false filing if it selected an exact date.
The categories "Formal Charge(s) Description," "Number of Counts," "Charge Type – Felony or Misdemeanor," "Plea," and "Product Type (if charge is investment related)" in Part II.2. will be changed to "Part II.B Event Disclosure Detail (include Charge(s)/Charge Description(s), and for each charge provide: 1. number of counts, 2. felony or misdemeanor, 3. plea for each charge, and 4. product type if charge is investment-related." This change will allow the applicant to describe the event, including all charges arising from it, in a Text Box.
The question of whether any of the charges within an event involve a felony will be asked separately under revised Part II.3.C.
The category "Charge is Currently," in Part II.2 will be renumbered as Part II.D and renamed "Current Status of the Event." It will also be amended by including the "Pre-trial Intervention" selection as a category more appropriately belonging under the "Pending" selection.
The category "Appeal Date" under Part II.2 will be reformatted as Part II.E. and renamed "Event Status Date (complete unless status is Pending)." A Text Box will be added to this section to enable the applicant to provide estimated dates and accompanying explanations.
The category "Disposition Detail Disclosure" under Part II.3 will be reformatted and renumbered as Part II.4. A Text Box will be added to this section to allow the applicant to describe, in context, the disposition of a particular charge.
Part II.4 will be renumbered as Part II.5.

b. Regulatory Action DRP

The amendments to the Regulatory Action DRP are as follows:

Part II.1. – The amendments will replace "commodities exchange" as a selection under "Regulatory Action initiated by:" with "Other Federal" and "State." This change is necessary because a commodities exchange is an SRO (a category that is already listed as an option in Part II.1). "Other Federal" and "State" will be added to make Part II.1 consistent with question 11D on Form BD. In addition, the defined term "SRO" will be italicized.
Part II.2. – The amendments will rephrase "Regulatory Action Type" as "Principal Sanction" with an accompanying Text Box entitled "Other Sanctions." The renaming of this section as Principal Sanction is intended to more accurately portray the kind of information sought by regulators. The Principal Sanction box will also be a Pick List that includes the following categories of sanctions: Civil and Administrative Penalty(ies)/Fine(s), Bar, Cease and Desist, Censure, Denial, Disgorgement, Expulsion, Injunction, Prohibition, Reprimand, Restitution, Revocation, Suspension, Undertaking, and Other. The addition of "Other," with an accompanying Other Sanctions Text Box, was in response to industry concerns that certain sanctions may not be adequately explained by the Pick List categories. This amendment will enable an applicant to fully describe the circumstances of a sanction.
Part II.3. – As adopted in connection with the criminal DRP, this DRP will also be amended to add an "Explanation" selection and Text Box to allow the applicant to estimate the date on which a sanction was initiated, and to explain why the date is estimated.
Part II.5. – The amendments will change the phrase "Employing Firm when events occurred" to "Control Affiliate Employing Firm when activity occurred which led to the regulatory action (if applicable)." This amendment is intended to clarify that this question only applies to control affiliates.
Part II.6. – The amendments will reformat the category "Product Type(s)" into two categories, "Principal Product Type" and "Other Product Types." The Principal Product Type category will also contain a Pick List which includes the following selections: Annuity(ies)-Fixed, Annuity(ies)-Variable, CD(s), Commodity Option(s), Debt-Asset Backed, Debt-Corporate, Debt-Government, Debt-Municipal, Derivative(s), Direct Investment(s)-DPP & LP Interest(s), Equity-OTC, Equity Listed (Common & Preferred Stock), Futures-Commodity, Futures-Financial, Index Option(s), Insurance, Investment Contract(s), Money Market Fund(s), Mutual Fund(s), No Product, Options, Penny Stock(s), Unit Investment Trust(s), and Other. The addition of Other Product Types will enable an applicant to describe a product that does not fit under one of the other selections on the Pick List.
Parts II.9 and 10. – The amendments will combine current Part II, questions 9 and 10 into new question 9. New question 9 will ask in which tribunal, and on what date, a regulatory action was appealed. In addition, "State Court" will be added to the list of possible tribunals in which an appeal could be filed and "U.S. Court of Appeals" will be replaced with "Federal Court."
Part II.11. – Question 11 will be renumbered as question 10.
Part II.12. – Question 12 will be renumbered as question 11. It will also be amended to add an "Explanation" selection and Text Box to allow an applicant to estimate the date on which a matter was resolved, and to explain why the date is estimated.
Parts II.13 – 19. – The amendments to questions 13–19 are for technical and reformatting purposes and are not intended to affect the substance of these questions. The amendments are as follows:
- Question 13 (Sanctions) will be renumbered as question 12 and rephrased as "Were any of the following Sanctions Ordered? (Check all appropriate items)." New question 12 will be divided into three sections. Section A will prompt an applicant to check the boxes of applicable sanctions ordered against it. The choices include "Monetary/Fine Amount $_______," "Revocation/Expulsion/Denial," "Disgorgement/Restitution," "Censure," "Cease and Desist/Injunction," "Bar," and "Suspension." Section B will provide the applicant with a Text Box to describe sanctions (other than those listed in Section A) that were ordered against it. Section C will provide the applicant with a Text Box to describe in detail the conditions of the sanction. Specifically, Section C will be amended to read "C. Sanction detail: if suspended, enjoined or barred, provide duration including start date and capacities affected (General Securities Principal, Financial Operations Principal, etc.). If requalification by exam/retraining was a condition of the sanction, provide length of time given to requalify/retrain, type of exam required and whether condition has been satisfied. If disposition resulted in a fine, penalty, restitution, disgorgement or monetary compensation, provide total amount, portion levied against applicant or control affiliate, date paid and if any portion of the penalty was waived."
- Questions 14 (Suspension, Injunction, Bar), 15 (Requalification), 16 (Fine, Penalty, Restitution, Disgorgement or Monetary Compensation), 17 (Payment by Control Affiliate of a Monetary Sanction), and 18 (Waiver of Penalty) will be combined under question 12, and renamed "Resolution Detail."
- Question 19 will be renumbered as question 13.

c. Civil Judicial DRP

The amendments will make the following changes to the Civil Judicial DRP:

Part II.2. – The amendments will rename "Relief Sought: (Temporary Restraining Order, Mandatory Injunction, Preliminary Injunction, etc.:" as "Principal Relief Sought," with an accompanying Text Box entitled "Other Relief Sought." The Principal Relief Sought box will be a Pick List that includes the following categories of sanctions: Cease and Desist, Civil Penalty(ies)/Fine(s), Disgorgement, Injunction, Money Damages (Private/Civil Complaint), Restitution, Restraining Order, and Other. The addition of Other will enable an applicant to more fully describe regulatory sanctions taken against him as well as any other sanctions that are not covered in the Pick List.
Part II.3. – The amendments will add an "Explanation" selection and Text Box to allow an applicant to estimate the date on which a civil court action was filed, and to explain why the date is estimated.
Part II.4. – The amendments will reformat the category "Product Type(s)" into two categories, "Principal Product Type" and "Other Product Types." The Principal Product Type category will also contain a Pick List that includes the following selections: Annuity(ies)-Fixed, Annuity(ies)-Variable, CD(s), Commodity Option(s), Debt-Asset Backed, Debt-Corporate, Debt-Government, Debt-Municipal, Derivative(s), Direct Investment(s)-DPP & LP Interest(s), Equity-OTC, Equity Listed (Common & Preferred Stock), Futures-Commodity, Futures-Financial, Index Option(s), Insurance, Investment Contract(s), Money Market Fund(s), Mutual Fund(s), No Product, Options, Penny Stock(s), Unit Investment Trust(s), and Other. The addition of Other Product Types will enable an applicant to describe a product that does not fit under one of the other selections on the Pick List.
Part II.5. – The amendments will delete "Military" as a type of court in which a formal action may have been brought. This change is necessary because military courts may hear criminal, and not civil, actions.
Part II.6 and 7. – The amendments will also combine questions 6 (Location of Court) and 7 (Docket/Case Number) under question 5. As amended, Part II, question 5 will read "Formal Action was brought in (include name of Federal, State or Foreign Court, Location of Court – City or County and State or Country, Docket/Case Number."
Part II.8. – The amendments will renumber question 8 as question 6. It will change the phrase "Employing Firm when events occurred" to "Control Affiliate Employing Firm when activity occurred which led to the civil judicial action (if applicable)." This amendment will clarify that the question seeks the name of the employing firm when the underlying activity took place, and not the name of the employing firm when the civil action was filed.
Parts II.9, 10, 12, and 13. – The amendments will renumber question 9 as question 7, renumber question 10 as question 8, and combine questions 12 and 13 and renumber them as question 9.
Part II.11. – Question 11 will be renumbered as question 10. In addition, the amendments will add an "Explanation" selection and Text Box to allow the applicant to estimate the date when a notice/process was served, and to explain why the date was estimated.
Part II.14 – The amendments will renumber question 14 as question 11. The new question 11 will contain a Pick List that includes the following resolution categories: Consent, Dismissed, Judgment Rendered, Opinion, Settled, Withdrawn, and Other.
Part II.15 – The amendments will renumber question 15 as question 12. In addition, the amendments will add an "Explanation" selection and Text Box to allow the applicant to estimate the resolution date of a civil action, and to explain why the date is estimated.
Parts II.16, 17, 18, 19, 20 and 21 – The amendments to questions 16–21 are for technical and reformatting purposes and are not intended to effect the substance of these questions. The amendments are as follows:
- Question 16 (Sanctions), Questions 17 (Suspension, Injunction, Bar), 18 (Requalification), 19 (Fine, Penalty, Restitution, Disgorgement or Monetary Compensation), and 20 (Payment by Control Affiliate of a Monetary Sanction) will be combined under question 13 and renamed "Resolution Detail."
- New question 13 will be divided into three sections: Section A will prompt the applicant to check the boxes of applicable sanctions ordered against it. The choices will include "Monetary/Fine Amount $_______," "Revocation/Expulsion/Denial," "Disgorgement/Restitution," "Censure," "Cease and Desist/Injunction," "Bar," and "Suspension." Section B will provide the applicant with a Text Box to describe sanctions (other than those listed in Section A), that were ordered against it. Section C will provide the applicant with a Text Box to describe in detail the conditions of the sanction. Specifically, Section C will be amended to read "C. Sanction detail: If suspended, enjoined or barred, provide duration including start date and capacities affected (General Securities Principal, Financial Operations Principal, etc.). If requalification by exam/retraining was a condition of the sanction, provide length of time given to requalify/retrain, type of exam required and whether condition has been satisfied. If disposition resulted in a fine, penalty, restitution, disgorgement or monetary compensation, provide total amount, portion levied against applicant or control affiliate, date paid and if any portion of penalty was waived:" The question of whether any portion of a penalty was waived will be added in order to make the sanction details in the Civil Judicial DRP consistent with the sanction details in the Regulatory Action and Form U-4 DRPs.
Part II.21 – Question 21 will be renumbered as question 14.

d. Financial DRP (Bankruptcy and SIPC)

The amendments will restructure those portions of the Financial DRP relating to bankruptcy and SIPC (Part II, Sections I (bankruptcy) and Part II (SIPC)) under revised Part II, questions 1-10. Specifically, the amendments are as follows:

Part II, Sections I and II, number 1 (Action Type) will be combined and renumbered as Part II.1. Revised Part II.1 will contain a Pick List that includes the following selections: Bankruptcy, Compromise, Declaration, Liquidated, Receivership, and Other.
Part II, Sections I and II, number 2 (Action Date) will be combined and renumbered as Part II.2. In addition, revised Part II.2 will include an "Explanation" selection and Text Box to allow an applicant to provide an estimated action date, and to explain why the date was estimated.
Part II, Sections I and II, number 3 (Securities firm name when events occurred) will be combined and renumbered as Part II.3. The new question will also be clarified by specifically reminding applicants to disclose information regarding an entity over which they or their control affiliate exercised control. The question "Was the Organization investment-related?" will also be added to Part II.3. This change will clarify the relationship of the applicant or control affiliate to the organization against which charges were brought.
Part II, Sections I and II, numbers 5-7 (Court name, location, docket/case number, and federal bankruptcy chapter number) will be combined and renumbered as Part II.4. Applicants will respond to the new question in the provided Text Box.
Part II, Sections I and II, number 9 (pending action) will be combined and renumbered as Part II.5.
Part II, Sections I and II, number 10 (Disposition Type) will be combined and renumbered as Part II.6. In addition, a Text Box will be provided with the following "Disposition Types" selections: Direct Payment Procedure, Discharged, Dismissed, Dissolved, Satisfied/Released, SIPA Trustee Appointed, and Other.
Part II, Sections I and II, number 11 (Disposition Date) will be combined and renumbered as Part II.7. In addition, revised Part II.7 will now include an "Explanation" selection and Text Box to allow an applicant to provide an estimated disposition date, and to explain why the date was estimated.
Part II, Sections I and II, number 12 (Summary of Events) will be combined and renumbered as Part II.8.
Part II, Section II, numbers 13-17 (SIPA Trustee) will be combined and renumbered as Part II.9. In addition, revised Part II.9 will include an "Explanation" selection and Text Box to allow an applicant to provide an estimated date on which a direct payment was initiated or filed, or a Trustee was appointed. The applicant will have to explain why the date was estimated.
Part II, Section II, number 18 (Status Disposition details) will be renumbered as Part II.10.

e. Bond Payout DRP

The amendments to Financial DRP 2 – Bonding Payout and Judgments/Liens, Section I will involve the following structural and reformatting changes:

Because the Bonding Payout DRP will be separated from the Judgments/Liens DRP,¹⁰ the Section I designation will no longer be necessary. As a result, Section I, numbers 1-6 of Financial DRP 2 will be renumbered as questions 1-6 (without sections) of the revised Bonding Payout DRP.
Question 3 will provide a Pick List that lists the following Disposition Type selections: Denied, Payout, and Revoked.
Question 4 of the revised Bonding Payout DRP will include an "Explanation" selection and Text Box to allow an applicant to provide an estimated disposition date, and to explain why the date was estimated.

f. Judgments/Liens DRP

The amendments to Financial DRP 2 – Bonding Payout and Judgments/Liens, Section II will also involve structural and reformatting changes. These changes are as follows:

Because the Judgments/Liens DRP will be separated from the Bond Payout DRP,¹¹ the Section II designation will be deleted as unnecessary. As a result, Section II, numbers 1-9 of Financial DRP 2 will be renumbered and reformatted as questions 1-9 of the revised Judgments/Liens DRP (without sections).
Revised question 3 (Judgment/Lien Type) will provide a Pick List with the following selections: Civil, Default, and Tax.
Question 4 will include an "Explanation" selection and Text Box to allow an applicant to provide an estimated filing date, and to explain why the date was estimated.
Question 5 will include an "Explanation" selection and Text Box to allow an applicant to provide an estimated status date, and to explain why the date was estimated. If the matter was resolved, an applicant will choose from a Pick List containing the following selections: Discharged, Released, Removed, and Satisfied.
Questions 6-7 will be combined and renumbered as question 6. A Text Box will be provided for an applicant to describe the name of the court, the location of the court, and the docket/case number.
Question 9 will be renumbered as number 7.

4. Amendments to Schedule E of Form BD

The amendments will replace the sentence "Check `Yes' or `No' to denote whether the location will be an Office of Supervisory Jurisdiction (OSJ) as defined in the NASD Rules of Fair Practice, Article III, Section 27" in Item 10 of Schedule E to Form BD with the following: "Check `Yes' or `No' to denote whether the location will be an Office of Supervisory Jurisdiction (OSJ) as defined in NASD Rule 3010." This change is intended to reflect the current numbering scheme for NASD Rules.¹²

Footnotes

-[1]-[1] SR-NASD-98-96

-[2]- Items 20A and 20B on Form U-4 have been renumbered as items 20 and 21, respectively (SR-NASD-98-96).

-[3]- The current instructions erroneously use the word "screen."

-[4]- See section A supra.

-[5]- For example, some successions must be done by application rather than by amendment. However, firms may not be familiar with this distinction.

-[6]- The Bond Disclosure and Judgment/Lien DRPs are not, however, split into Parts A and B. Part B of other DRPs relates to control affiliates. In contrast, these DRPs are only applicable to the applicant. Accordingly, Part A of the Bond Disclosure and Judgment/Lien DRPs have been modified to exclude the control affiliate references.

-[7]- This change will not apply to the Bond Disclosure and Judgment/Lien DRPs. (See discussion, supra Footnote No. 5.)

-[8]- This change will not apply to the Bond Disclosure and Judgment/Lien DRPs. (See discussion, supra Footnote No. 5.)

-[9]- In Web CRD, the DRPs will be placed in alphabetical order.

-[10]- See section E.1, above. See also section E.3.f., below.

-[11]- See sections E.1 and E.3.e., above.

-[12]- The NASD Manual was reformatted in 1996. See NASD Notice to Members 96-25.

http://www.sec.gov/rules/final/3441594x.htm

Additional Material for Release No. 34-41594: Appendix A: Technical, Formatting, and Conforming Amendments to 1996 Form BD