Does a firm that sells mutual funds and wants to offer Section 529 Plans to its customers need to go through FINRAs membership process to get approval to add this product?
Probably not. Adding Section 529 Plans to a firm’s product line will not constitute a material change in business requiring the filing of an application under NASD Rule 1017. If, however, a firm has a restriction in its membership agreement that specifically limits the firm’s expansion beyond the product lines approved in the original membership application or otherwise prohibits the firm from engaging in this activity, then the firm would have to file a Rule 1017 application to get approval to lift the restriction.
Related Questions
- My firm wants to use the established existing customer relationship to cold call our customers. If the customer has registered with the Telephone Preference Service (TPS) are we able to call them?
- Does a firm that sells mutual funds and wants to offer Section 529 Plans to its customers need to go through FINRAs membership process to get approval to add this product?
- In reviewing a member firms application to offer portfolio margining to customers, does FINRA require minimum equity to be maintained in individual accounts?
