Clarification.The Insurance Issues column that ran in the December 2001 JofA (page 37), raised the question about what type of entity CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. firms should set up to allow them to sell insurance policies that qualify as investment securities. Generally, anyone who sells investment securities or receives commissions from their sale must have the appropriate NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). license. Additionally, that individual must be associated With a firm that is an NASD member. NASD rules prohibit pro·hib·it tr.v. pro·hib·it·ed, pro·hib·it·ing, pro·hib·its 1. To forbid by authority: Smoking is prohibited in most theaters. See Synonyms at forbid. 2. the sharing of securities commissions with unlicensed persons. Issues of how to handle securities commissions within an accounting firm are best handled by the compliance department of the firm's broker-dealer Broker-Dealer A person or firm in the business of buying and selling securities operating as both a broker and dealer depending on the transaction. Notes: Technically, a broker is only an agent who executes orders on behalf of clients, whereas a dealer acts as a principal or by outside securities counsel. |
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