SEC Approves CEO Compliance Certification Rule


September 24, 2004


 

The SEC has approved new NASD Rule 3013 and an accompanying interpretive material that requires members to (1) designate a chief compliance officer (CCO) and (2) have the chief executive officer (CEO) (or equivalent officer) certify annually that the member has in place processes to establish, maintain, review, test, and modify written compliance policies and written supervisory procedures reasonably designed to achieve compliance with applicable NASD rules, MSRB rules, and federal securities laws and regulations.

 

NASD expects to publish a Notice to Members announcing the rule approval around November 1, 2004. The rule will become effective 30 days following publication of that Notice to Members. Members therefore will be required to designate and identify to NASD on Schedule A of Form BD a principal to serve as CCO by that effective date. Accordingly, NASD recommends that members begin thinking about the designation of the CCO now to ensure that they will meet the compliance date. The certification must be executed within one year after that effective date and annually thereafter.

 

View the rule and interpretive material text.