Foreign Administration

Effective February 16, 2004, the Regulatory Element Continuing Education Supervisors Program (S201) became available for administration at certain Pearson VUE Centers in foreign countries (see Exhibit A). A complete list of all Pearson VUE and Prometric Centers can be viewed on the website of the Securities Industry/Regulatory Council on Continuing Education at http://www.securitiescep.com.

Supervisors and principals residing approximately 350 miles or less from these Pearson VUE Centers whose anniversary requirement windows open after Wednesday, March 24, 2004, will no longer be eligible for foreign deferrals.

The Regulatory Element Supervisors Program (S201) is required of supervisory personnel with the following NYSE registrations: Registered Options Principal, General Securities Sales Supervisor, Branch Office Manager, Allied Member, Compliance Official, Supervisory Analyst, Financial & Operations Principal, Introducing Broker-Dealer Financial & Operations Principal.

Registered supervisory personnel residing in locations outside a 350-mile radius of a Pearson VUE Center in a foreign country remain eligible for foreign deferrals until the S201 is available in other locations. Foreign deferral requests must be made in writing, signed by a principal of the firm, and mailed to NASD, Continuing Education Department, 9509 Key West Avenue, Rockville, MD 20850 or faxed to 240-386-4675. Requests must contain the individual's name, CRD number, and the city and country of residence. Firms must proactively request a foreign deferral for each anniversary date that subjects a registered person to a Regulatory Element requirement, because renewal of foreign deferrals is not automatic.

Any questions relating to this memorandum may be directed to Roni Meikle, Manager - Continuing Education at (212) 656-2156 or Pat DeVita, Senior Coordinator - Continuing Education at (212) 656-2746.

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Salvatore Pallante
Executive Vice President