Criteria for NASP Membership
To be a considered for Regular Memberships in NASP, a company, firm, entity, or individual must:
- Be substantially involved in the secondary market
- Be primarily financed by non-affiliated third party investors
- Have transacted significant, demonstrable originations and/or brokerage activities, for a minimum period of one year immediately before applying for membership
Others may qualify as Regular Members, if they are:
- Origination companies that are no longer actively involved in originating structured settlement receivables, but which still actively service a significant portfolio
- Companies, firms, entities, and individuals that broker transactions to other, non-affiliated entities, or service their own, originated portfolios of secondary market transactions
NASP Membership is a privilege held in the legal name of the approved entity which is the member. A member may refer to itself or may designate a single affiliate or fictitious name as the brand holding itself out to the world as a NASP Member in communications, marketing materials, or other manner.
Standards of Conduct
Business practices that reflect negatively on the secondary market, which are unfair or deceptive, or which attract criticism from courts, legislators, regulators, or participants in the primary market pose a significant threat to the continued viability of the secondary market. Companies, firms, entities, or individuals that engage in these practices are not welcome in NASP and will not be invited to join NASP or to continue their membership.
Specifically, Regular Members must:
- Use their best efforts to comply with all applicable laws, rules, and regulations relative to the secondary market, including applicable federal tax laws and all applicable transfer statutes
- Adhere to NASP’s Code of Ethics and the Consumer Bill of Rights
- Comply with the rules for use of the NASP Anti-Fraud Database
- Pay annual dues on time
- Not take or advocate positions or legal theories relative to transfers of structured settlement payments, specifically including legal positions in court or in the general marketplace that conflict with or contradict NASP’s positions
Respect and not divulge in any way any confidential information received in the course of their NASP membership. Confidential information includes:
- Proprietary, private, strategic, and/or legally privileged information, documents, and materials about the secondary market; structured settlements; pending legal cases; pending or anticipated legislation, and court procedures and practices
- The NASP Anti-Fraud Database; NASP finances, dues, and budgets; disputes or legal proceedings involving NASP Members
- Any information provided in the context of a NASP Legal/Legislative Committee meeting or a NASP Board Meeting, unless otherwise noted
- Information provided in connection with meetings of the NASP Membership and Finance Committee about NASP financial matters, dues, budgets, expenditures, and information discussed about prospective members
- Information provided at NASP Regular Membership meetings, including information discussed as part of a Legal/Legislative Committee presentation, and information about NASP financial matters
- NASP Members shall not knowingly disclose confidential information to any unauthorized person without the consent of NASP, or as required by law.
- NASP Members may share confidential information with their own employees, officers, directors, agents, attorneys, accountants, auditors, bankers, and financial advisors in the ordinary course of business operations, as necessary. When this happens, the Member must advise the person receiving the information that it is confidential and should be used only in the service of the NASP Member.
- Comply with and follow any other rules or standards set forth by the Board.
Each NASP Member is responsible for the activities and communications of its affiliates and may be subject to sanctions for violations of these criteria and other rules or principles of NASP by its affiliates.
A NASP Member may be sanctioned or removed by the NASP Board for failure to remedy violations of NASP’s membership criteria, bylaws, and other NASP rules, or for failure to pay its dues in a timely manner.
By majority vote, the NASP Board may:
- Assess fines
- Suspend a Member’s membership or privileges (including use of the NASP Anti-Fraud Database) for a specific period of time or until violations are cured
- Terminate membership
- Minimum Dues for Regular Members are determined annually by the Board. The Board may take into consideration the size of the firm when setting dues, and may decide to set dues for large firms about the minimum level. Dues typically are set in November or December for the upcoming year.
- Dues for Board Members are higher than for other levels of membership and are typically based, to some extent, on the level of involvement and activity of the Board Member in the secondary market. Dues are not the same for all Board Members.
Affiliate Membership is open to law firms or attorneys who represent NASP member companies in court on a regular, recurring basis. Individuals and entities that advise, consult with, or represent persons or entities involved in the structured settlement secondary market as a consultant, attorney or advisor may be eligible for Affiliate Membership, subject to Board approval.
Affiliate member dues are $375.00 annually for law firms, companies, or individuals.