The NASD lists its total number of registered representatives as approximately 660,000. The annual turnover rate of representatives in the securities industry, according to the Securities Industry Association, is about 19%.

With such volatility, it is little wonder that fund companies struggle to keep tabs on who is selling their funds, or how to reconcile unmatched trades to their sales reporting databases. When trades come through clearing firms, funds face a double layer of complexity in identifying the introducing dealer and its affiliated representative.

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