ACLI objects to proposed NASD rule on branch offices

National Underwriter Life & Health, November, 2004 by Matt Brady

THE NATIONAL ASSOCIATION of Securities Dealers, in proposing a rule to redefine what constitutes a branch office for brokers, is favoring large full service brokerages and placing an undue burden on those specializing in life products, according to an official with the American Council of Life Insurers.

Under current rules, branch offices are required to be registered with regulators from the NASD, the Securities and Exchange Commission and their state regulators, and are subject to inspection. Additionally, there are rules that require a supervisory structure within each branch office. These offices are presently defined by the functions that are undertaken there.

As an example, Carl Wilkerson, vice president and chief counsel, securities and litigation,...