B. Retrieve your firm’s online Final Renewal Statement in IARD on or after January 2, 2004

Pay your firm’s Final Renewal Statement by the February 6, 2004, receipt deadline

Beginning January 2, 2004, online Final Renewal Statements for investment advisers will be available in IARD. These statements will reflect the final registration statuses of your IA firm and its IA representatives as of December 31, 2003. Any adjustments as a result of registration approvals or terminations subsequent to the Preliminary Renewal Statement will be made in this final reconciled statement. If your firm’s statement shows an amount due then NASD must receive full payment of your firm’s Final Renewal Statement by February 6, 2004.

To retrieve your firm’s Final Renewal Statement:

1. Logon to IARD at https://www.webiard.com/iad
2. You will be required to enter your User Name and Password.
   (Please note: The IARD System requires users to change their passwords every 120 days. If you have not logged onto the system in the past 120 days, you will first be prompted to change your password after you logon. Once you change your password, you will need to logoff and close your browser for at least 15 minutes before logging back onto IARD.)
3. Accept the disclaimer. (The system will then display the Site Map.)
4. From the Site Map, click on the 'Renewal Statement' link under the 'Accounting' section.
5. The total adjusted amount on your firm’s Final Renewal Statement will display either 'Paid In Full' or an 'Amount Due.'
   • If your statement shows an 'Amount Due' (i.e., positive amount or debit balance), then your firm needs to pay the balance to NASD by February 6, 2004.
   • If the 'Paid In Full' amount on your firm’s Final Renewal Statement is less than the amount your firm paid for its Preliminary Renewal Statement then your overpayment has been systematically transferred to your firm’s Daily Account. Any refunds should be requested from that account.
6. Print the statement. (A copy of the statement’s first page should be included with any check payment.)
7. If your firm’s statement shows an amount due then NASD must receive full payment of your firm’s Final Renewal Statement by February 6, 2004.
   • Acceptable Renewal Payment Methods listed previously for Preliminary Renewal Statement payment are also accepted for payment of your Final Renewal Statement.

The statement will reflect the total adjusted amount for approved or terminated registration statuses in Web CRD/IARD as of December 31, 2003:

• The jurisdictions with which the firm is registered and the amount paid to jurisdictions to renew those registrations/Notice Filings.
• The number of IA representatives with approved registrations with jurisdictions and the amount paid to renew those registrations.
• The IARD Firm Annual Fee (System Processing Fee) that was assessed and paid to NASD.
  • For state-registered firms with assets under management that are less than $25 million, this fee was $100 per firm.
    (NOTE: For SEC-registered firms, the IARD Firm Annual Fee is due at the time the firm files its Annual Amendment Filing, which is 90 days after the firm’s fiscal year-end.)
• The IA Representative Annual Fees (System Processing Fee is $45 per IA representative) that were assessed and paid to NASD.
• Renewal Fees owed by your IA firm for any firm or representative registrations that were approved after the Preliminary Renewal Statement was generated but prior to system shutdown on December 20, 2003.

Request a refund for any overpayment of Renewal Fees:

In conjunction with Renewal processing, all 2004 Renewal overpayments by firms made to NASD will systematically be transferred to the firms’ Daily Accounts. Firms may leave the funds in their Daily Accounts to use for future registration fees or request refund checks from NASD from their Daily Accounts. To request a refund check, have an appropriate signatory sign the first page of the Final Renewal Statement and mail it to NASD by February 6, 2004.

Send Renewal Refund requests to:

NASD
Decoverly
User Support—CRD Accounting
9509 Key West Avenue
Rockville, MD 20850
(240) 386-4848

Report any discrepancies on your firm’s Final Renewal Statement by February 6, 2004:

If your firm believes there are discrepancies on your Final Renewal Statement, report them in writing directly to NASD by February 6, 2004. Along with your letter describing the discrepancy, please include a copy of your Final Renewal Statement and any supporting documentation such as Forms U4, U5, ADV, ADV-W, or Amendment Filings.

Send Final Renewal Statement Discrepancy letters to:

NASD
Decoverly
User Support—Research
9509 Key West Avenue
Rockville, MD 20850
(240) 386-4848

VI. What is a Firm Renewal Report and what is it used for?

A Firm Renewal Report is sorted by regulator and lists all of your firm’s IA representatives with approved registration statuses in Web CRD. Firms should use the report to verify the number of IA representatives and their approved registration statuses for which the firm is being assessed 2004 Renewal Fees.

• Preliminary Firm Renewal Reports:

  On or after November 3, 2003, firms may begin to request, print, and/or download their Preliminary Firm Renewal Reports. Beginning January 2, 2004, this preliminary information will be updated and populated in the Final Firm Renewal Report.

• Final Firm Renewal Reports:

  On or after January 2, 2004, firms may begin to request, print, and/or download their Final Firm Renewal Reports.

• To request either a Preliminary or Final Firm Renewal Report via IARD, follow these steps:
  1. Logon to IARD at the following address: https://www.webiard.com/iad
  2. You will be required to enter your User Name and Password.
  3. Accept the disclaimer. (The system will then display the Site Map.)
  4. From the Site Map, click on the “Request Reports” under the “Reports” section (if you do not have entitlement to see the Reports Tab, please contact your Account Administrator).
  5. Click on the “Renewals—Firm Renewal Report” hyperlink. {A form will open up and you will need to submit all required information for fields with an asterisk (*) next to them.}
  6. Click the Submit Button. (You will receive a Report ID Number. Record this number for reference when you view your report.)
  7. Most reports will be available to view shortly after you submit your request.

• To view the report once it is available:
  1. From the Site Map, click on the “View Report” link under the “Reports” section (A new browser window will appear that will list all of the reports that you have requested).
  2. Click on the hyperlink for the report. (The Report ID Number will be listed as a hyperlink in the ‘Request #’ column. The link will either open the report in the browser window or prompt you to save the document to your computer depending on the type of report that you requested.)

• Firm Renewal Report Download:

  The Firm Renewal Download is a downloadable report of all individuals who are eligible for renewal or were renewed for the firm. Download reports are usually requested by large firms that plan to import the downloadable data into a spreadsheet or database in order to format or sort the data differently. Your firm will be able to download this report from View Reports (Reports Tab). After downloading the report, firms may need an application to unzip the file. There are no fees associated with this report request. Detailed instructions are available on how to download this report.

• Please note the following regarding reports:
  • The 'RA Discount Fee' is only applicable to an individual that is both an IA representative (RA) and a broker/dealer agent (AG).
  • Some reports may take longer than others to appear in View Reports. (If you do not see your report when you first go into View Reports, please check back in another 15 to 20 minutes.)
  • Reports will expire after a certain amount of time. The length of time each report remains in your ReportMart is detailed in the Glossary for your reference.

VII. What will happen if my firm fails to renew?

An IA firm that has an online Preliminary Renewal Statement and does not pay it in full will have all of its IA representatives’ (RAs) registrations with jurisdictions terminated effective December 31, 2003. Additionally, your IA firm's registration/Notice Filings with jurisdictions will be terminated effective December 31, 2003, if your firm was registered/Noticed Filed for 2003 in a jurisdiction that participates in the IARD Automatic Failure To Renew Program. This program provides jurisdictions the ability to authorize NASD to systematically terminate the firm’s registration, on behalf of the jurisdiction, with a termination date of December 31, 2003, if the firm fails to pay the full amount of its online Preliminary Renewal Statement. If this should occur, firms are advised to contact each jurisdiction directly to determine the appropriate reinstatement procedures.

NOTE: An IA firm and its IA representatives that are approved between November 3 and December 20, 2003, will have their applicable Renewal Fees assessed and collected in the firm’s online Final Renewal Statement, which will be available on IARD January 2, 2004. These firms will neither have an online Preliminary Renewal Statement nor will they automatically fail to renew on December 31, 2003.

Please be advised that many jurisdictions levy fines for failure to renew properly. A complete list of each state office’s contact information is provided on the NASAA Web Site.

The following jurisdictions are participating in the Automatic Fail To Renew Program for 2004 (current as of December 4, 2003):

Jurisdictions Participating In Auto Fail To Renew
Arkansas	Minnesota	Oregon
California	Mississippi	Puerto Rico
Delaware	Missouri	Rhode Island
Dist of Columbia	Montana*	South Dakota
Florida	Nebraska	Texas
Idaho	Nevada	Utah
Indiana	New Jersey	Vermont
Kentucky	New Mexico	Virginia
Maryland	North Dakota	Washington
Massachusetts	Ohio	Wisconsin

* This state has withdrawn from the Automatic Fail To Renew Program for 2004.

VIII. What will be the IARD and Web CRD System Availability during the Renewal Processing Shutdown period (from December 21, 2003, thru January 1, 2004)?

Remember that no Web CRD/IARD System processing will occur between December 21, 2003, and January 1, 2004. During the shutdown period, the system will be available for your firm to query the system and create Pending form filings but you will not be able to submit them until January 2, 2004, when full system functionality becomes available again. Please refer to the 2004 IARD Renewal Program Calendar for important Renewal dates and deadlines. Additionally, the System Availability Schedule lists the days and hours IARD and Web CRD are available for querying and creating Pending filings during the shutdown.

The following are highlighted Renewal dates and times to keep in mind:

• No Transition Filings can be created or submitted from 11 p.m., Eastern Time (ET), October 31, 2003, through January 1, 2004.
• No electronic Form Filings may be submitted from 6 p.m., December 20, 2003, through January 1, 2004.
• Web CRD/IARD will be available for querying the system and creating a Pending form filing on December 24 and 31, 2003, from 7:00 a.m., ET, to 6:00 p.m., ET.
• Web CRD/IARD will be completely unavailable:
  • Thursday, December 25, 2003, in observance of the Christmas holiday.
  • Saturday, December 27, 2003, due to Renewal Processing.
  • January 1, 2004, in observance of the New Year’s Day holiday.
• Beginning January 2, 2004, your firm may once again begin submitting filings for processing on Web CRD/IARD. All Pending form filings may be submitted. Transition Filings can be created and submitted.

IX. Additional resources available that provide Renewal information

2004 IARD Renewal Program Calendar

October 2003
27	Firms may begin to submit post-dated Form U5s via Web CRD. All post-dated forms must be dated 12/31/03.
31	ALL Transition Filing functionality for investment advisers is shut down at 11:00 p.m., Eastern Time (ET), and WILL NOT become available again until 01/02/04.
November 2003
1	NASD runs extract of PRELIMINARY Renewal Statements.
3	Firms may begin to submit post-dated Form ADV-Ws via IARD. All post-dated forms must be dated 12/31/03. PRELIMINARY RENEWAL STATEMENTS are available to firms via Web CRD/IARD Site Maps for viewing and printing. (They are not mailed to firms.) To retrieve your Preliminary Renewal Statement: Logon on to Web CRD/IARD. From the Site Map, click on the Renewal Statement link under the Accounting section. Firms may submit their 2004 Renewal Payments by: Electronic Payment via Web CRD/IARD E-Pay You can access Web CRD/IARD E-Pay at www.iard.com There will also be a hyperlink to Web CRD/IARD E-Pay on your online Renewal Statement. Wire Transfer Wire Transfer instructions are available in this Bulletin. Check (Make checks payable to NASD and be sure to indicate your firm's CRD/IARD Number and the word "Renewals" on the memo line of the check.) Print your Statement and include a copy of the first page with your firm's check payment to: FOR US MAIL: NASD, CRD-IARD P.O. Box 7777-W8705 Philadelphia, PA 19175-8705 (The P.O. Box will not accept courier or overnight deliveries.) FOR OVERNIGHT/EXPRESS DELIVERY: NASD, CRD-IARD W8705 c/o Mellon Bank, Rm 3490 701 Market Street Philadelphia, PA 19106 Phone Number: 240-386-4848 Please note that the Renewal Payment addresses noted above are DIFFERENT than the payment addresses for your firm's Daily (Registration) Account. Transfer of Funds from the Firm’s Daily Account to its Renewal Account A firm may elect to pay its Preliminary Renewal Statement and/or its Final Renewal Statement by requesting that the TOTAL amount on the Statement be transferred from the firm’s Daily Account to its Renewal Account. To do so, the firm should: Call the IARD Call Center at (240) 386-4848 Verify that the TOTAL amount on its Renewal Statement is available in its Daily Account Request that NASD transfer the funds to your firm’s Renewal Account Firms may begin to request and view their Preliminary Firm Renewal Report. (This report lists individuals included in Renewal processing and includes Billing Codes.)
December 2003
3	Last day to send wire, Web CRD/IARD E-Pay, overnight Preliminary Renewal Statement check payments to NASD, or transfer funds from the firm’s Daily Account to its Renewal Account to ensure posting to your firm's Renewal Account by the December 5 "receipt of" payment deadline.
5	PRELIMINARY RENEWAL STATEMENT PAYMENT DEADLINE—Your firm's Renewal payment must be posted to your firm's Renewal Account with NASD by 12/05/2003.
20	2:00 p.m., (E.T.), DEADLINE for submission of all EFT (electronic file transfer) filings. 6:00 p.m., (E.T.), DEADLINE for submission of all electronic form filings (including Forms U4, U5, ADV, ADV-W, and Amendments) via Web CRD and/or IARD. *At this time, Web CRD/IARD System processing is shut down. Investment adviser firms and investment adviser representatives (RAs) will not be approved or terminated from this time until Web CRD/IARD processing resumes on 01/02/04.
21	NASD extracts FINAL Renewal Statement data from Web CRD/IARD database.
22, 23, 24, 26, 29, 30, 31	Web CRD/IARD available for QUERY-only and the creation of "Pending" filings. Form Filings can be created but not submitted during the shutdown. Please note that any pending U4 filings may be invalidated if a post-dated U5 filing is processed during Renewals. If a Pending filing is invalidated you will need to recreate the filing in order to submit it. Transition Filing functionality remains unavailable until 01/02/04.
31	2004 Renewal Payments sent to all regulators participating in the 2004 Renewal Program.
January 2004
2	Web CRD/IARD Systems' complete functionality available as of 7:00 a.m., (E.T.). All form filing functionality is available. Investment adviser firms and investment adviser representatives may be approved or terminated at this time. All 2004 Preliminary Renewal Statement overpayment amounts will be transferred to firms' Daily (Registration) Accounts. Refund requests will be made from this account. FINAL RENEWAL STATEMENTS are available via Web CRD/IARD for viewing and printing. To retrieve your Final Renewal Statement: Logon to Web CRD/IARD. From the Site Map, click on the Renewal Statement link under the Accounting section. Firms may submit their payments by: Electronic Payment via Web CRD/IARD E-Pay Wire Transfer Check (Make checks payable to NASD and be sure to indicate your firm's CRD Number and the word "Renewals" on the memo line of the check.) Print your Statement and mail the first page with your firm's payment to: FOR US MAIL: NASD, CRD-IARD P.O. Box 7777-W8705 Philadelphia, PA 19175-8705 (The P.O. Box will not accept courier or overnight deliveries.) FOR OVERNIGHT/EXPRESS DELIVERY: NASD, CRD-IARD W8705 c/o Mellon Bank, Rm 3490 701 Market Street Philadelphia, PA 19106 Phone Number: 240-386-4848 Please note that the Renewal Payment addresses noted above are DIFFERENT than the payment address for your firm's Daily (Registration) Account. Transfer of Funds from the Firm’s Daily Account to its Renewal Account A firm may elect to pay its Preliminary Renewal Statement and/or its Final Renewal Statement by requesting that the TOTAL amount on the Statement be transferred from the firm’s Daily Account to its Renewal Account. To do so, the firm should: Call the IARD Call Center at (240) 386-4848 Verify that the TOTAL amount on its Renewal Statement is available in its Daily Account Request that NASD transfer the funds to your firm’s Renewal Account Firms may begin to request and view their Final Firm Renewal Report (This report lists all individuals included in Renewal processing and includes Billing Codes.)
February 2004
6	FINAL RENEWAL STATEMENT PAYMENT DEADLINE. Deadline for reporting Renewal discrepancies.
7	NASD runs extract for PAST DUE Renewal Statements.
9	PAST DUE Renewal Statements are available via Web CRD/IARD for viewing and printing.
March 2004
1	DEADLINE for payment of PAST DUE Renewal Statements.

Questions?

For questions regarding the IARD Renewal Program, please call the IARD Call Center at (240) 386-4848 or send an e-mail to webiard@nasd.com.