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News November 6, 2006 Issue

IARD Renewal Season Begins Anew

Beginning this week, firms can access their "Preliminary Renewal Statements" on IARD. For more information on IARD renewals, see the 2007 IARD Renewal Program Bulletin.

"Make sure that you get the fees deposited by the deadline," warned ACA consultant Rhea Shelton, a former state regulator. If the deadline is not met, the entire filing must be made over again. The firm wonít lose its money, he explained. "Itís just a hassle."

Shelton also reminded advisers to pay the total amount shown on the Preliminary Renewal Statements, even if they plan to drop an individual later. Any excess will remain as a credit, or the firm can request a refund after the first of the year.

Also, make sure you are sending money to the right place. "A lot of the questions I get are about the difference between daily fees and renewal fees," said Shelton. The IARD renewal account has a different address than the daily account, he noted. The renewal account is only used for renewal fees, whereas the daily account is used for day-to-day transactions throughout the year.

Firms can run a report listing all individuals currently registered as IA reps via IARD. This report can be used to confirm that all individuals required to be registered are registered. It also can be used to identify IARs that can be dropped, perhaps because theyíve left the firm, moved offices, or changed the nature of their business so as not to qualify as IARs under the SECís definition.