What NASD license is required to sell certificates of deposit?

Answer 1

None, but you may have state registration requirements. NASD registration is only required for assets sold and regulated by the NASD. Assets sold or regulated by an exchange require registration separately. Certificates of Deposit are not registered securities BUT most states consider the acceptance of money to open an account as a CD as the act of banking and require you to meet all the requirements of a bank unless you are exempt such as a broker or insurance agent.

In other words, in most states, if you are not registered as a brokerage firm or insurance company you may only sell CDs IF you qualify as a banking institution. Usually that means you must be:

1)Incorporated
2)Have a minimum of 2-3 unrelated shareholders
3)Be willing as a shareholder to be personally liable for twice the indebtedness of the organization. (Bank shareholders do not always enjoy limited liability in theory, in practice they do.)
4)Have a president and cashier who are unrelated.
5)In most states, have $2,000,000 in unimpared capital.
6)Pass a range of tests of character, knowledge, experience and education.
7)Have a dedicated fixed location of business in which no other type of business can be conducted.

Answer 2

I don't believe there is a license requirement for CDs. Bank tellers sell them all the time and they are not licensed.

Answer 3

none-- that is an fdic -- banking