I know this has been discussed here before, but there seem to be differing opinions. I have been unable to contact Nasdaq for an answer. Does anyone here know (definitively!): If you have a Series 7 and are with a pro firm, then leave the firm and trade retail only, do you have to continue paying professional fees for Nasdaq, NYSE, etc for the next two years? Is there any documentation for this? (I can't find anything!) Also, can you call Nasdaq and request to have your license canceled?
I believe that is once again one of those "grey areas" that the nasd is so famous for...however, If you have a 7 and are trading retail and only using the standard 4:1 intraday buying power...you should be ok...but if you are getting extra leverage via the firm ( 10:1 ect..) you most likely are considered a prop trader by the NASD and would have to pay pro fees...
This is as close to an answer as I could find: "Your NASD registration effectively terminates when your broker/ dealer employment is terminated..." http://nasd.broaddaylight.com/nasd/FAQ_23_624.shtm
I'm in the same situation. I feel that you are not a registered representative (always a qualifier for pro status) unless affiliated with a firm. The 2 year holding period is there to enable you to be a RR again , if desired Regards, Tbill
That's my interpretation too. Did you have to convince your broker that you're not a pro anymore? I had to send an email stating that my understanding is that I am no longer considered a pro. http://nasd.broaddaylight.com/nasd/FAQ_24_677.shtm "The two-year rule applies to NASD examinations only..." I take this to mean that the ONLY thing that the two-year rule applies to is the grace period that expires before you have to retake the exam.
(Not official by any means).... If you're not going to stay registered, do your continuing education, and take your name off of the CRD (Central Records Depository) then by all means tell your retail firm that you're not a professional. And don't pay the extra fees. Heck, if you're trading with margin and all the rest, why in the heck pay up? Don
Nasdaq finally contacted me with a response. In case anyone else finds himself in a similar situation, here's the email they sent. "Currently, if an individual is registered with any state, federal, or international securities agency or self-regulatory body, they are automatically defined as a professional end user. HOWEVER, IF THE INDIVIDUAL HAS FILED A FORM U-5, OR ANY ORGANIZATION HAS FILED A FORM U-5 ON BEHALF OF THE INDIVIDUAL, THAT PERSON IS NOT CONSIDERED TO BE REGISTERED AND IS NOT AUTOMATICALLY CONSIDERED A PROFESSIONAL EVEN THOUGH THEY HAVE BEEN REGISTERED. They still may be a professional because they meet the criteria in other ways. That being said, as soon as a Form U-4 is filed, he or she becomes a pro again. The Forms U-4 and U-5 are used by broker/dealers to register, and terminate the registrations of, associated persons with self-regulatory organizations and the jurisdictions. The Form U-4 is the Uniform Application for Securities Industry Registration or Transfer. Representatives of broker-dealers, investment advisors, or issuers of securities must use this form to become registered in the appropriate self-regulatory organizations and jurisdictions. The form U-5 is the Uniform Termination Notice For Securities Industry Registration. Broker-dealers, investment advisors, or issuers of securities must use this form to terminate the registration of an individual in the various self-regulatory organizations and jurisdictions.
I think my answer was at least as clear...LOL (...AND IS NOT AUTOMATICALLY CONSIDERED A PROFESSIONAL EVEN THOUGH THEY HAVE BEEN REGISTERED. ....They still may be a professional because they meet the criteria in other ways)....???? OK, that's as clear as can be, yeah, sure, ok... (don't pay unless you think you should, let your conscience be your guide, I guess). Happy New Year, again... Don