The Investment Dealers Association is proposing to impose a late fee on brokerage firm CFOs who haven’t completed the CFO qualifying exam.

A new registration requirement under which firms are required to appoint and register a CFO came into effect Jan. 5, 2004. All existing CFOs that held that position at the time of implementation were granted an 18-month transition period to complete the CFO qualification exam.

Now, it’s proposing to adopt a late fee that it will be able to impose on those that haven’t completed the exam. “The remedies currently available regarding any current CFOs that have not completed the examination by the deadline would be, in many cases, ineffectual or unduly harsh,” it says. “IDA staff is proposing to impose a late filing fee as a more moderate and appropriate remedial measure.”

The objective is to provide an incentive for all registered CFO’s write and pass the CFO qualifying exam on a timely basis. ”The imposition of a late completion fee will not add to the cost of compliance as compliant firms will not be charged any fees,” it notes.

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