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Clarification.

The Insurance Issues column that ran in the December 2001 JofA (page 37), raised the question about what type of entity CPA 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 license. Additionally, that individual must be associated With a firm that is an NASD member.

NASD rules prohibit 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 or by outside securities counsel.
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Publication:Journal of Accountancy
Date:Nov 1, 2002
Words:108
Previous Article:How to respond to policy changes: coping with rising premiums and decreasing death benefits.
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