NASD Notice to Members 97-77 - November 1997

NASD Regulation Requests Comment on Proposed Rule Regarding Forms U-4 and U-5, Qualified Immunity, and Advance Employee Notice;Comment Period Expires December 31, 1997

Executive Summary

NASD Regulation, Inc. (NASD RegulationSM) requests comment on a proposed new rule, National Association of Securities Dealers, Inc. (NASD®) Rule 1150 (Rule), which would provide NASD members with a qualified immunity in arbitration proceedings for statements made in good faith in certain disclosures filed with the NASD on Forms U-4 and U-5.  The Rule would also require that member firms give notice of the contents of a Form U-5 (and amendments) to the subject of the form at least 10 days prior to filing the form with the NASD.  Members would also be required to provide immediate notification to employees of material revisions to be filed on Form U-5.

 

Questions concerning this Request For Comment should be directed to Jean Feeney, Assistant General Counsel, Office of General Counsel, NASD Regulation, at (202) 728-6959, or Laura Gansler, Attorney, Office of General Counsel, NASD Regulation, at (202) 728-8275.