NASD Notice to Members 97-32 - May 1997

NASD Regulation Files Proposed Changes to Disciplinary, Election, and
Membership Procedures With the SEC

Executive Summary

On April 18, 1997, NASD Regulation, Inc. (NASD RegulationSM) filed with the Securities and Exchange Commission (SEC) for its approval a comprehensive proposed rule change that will address three primary issues: (1) how an entity or person becomes a member of the NASD (membership procedures); (2) how the NASD may discipline a member or a person associated with a member for misconduct (disciplinary procedures); and (3) how NASD and NASD Regulation  nominations and elections for certain board and committee positions are conducted (election procedures). The proposal is contained in rule filing number SR-NASD-97-28.

 

The SEC will publish the proposed rules in the Federal Register, indicating a time period when members and other interested parties may comment. Comment letters should be submitted directly to the SEC once the rule proposal is published in the Federal Register to ensure that the SEC receives all comments. The proposed rules will not become final until approved by the SEC.

 

NASD Regulation is publishing this Notice to alert members to the fact that this proposed rule change has been filed with the SEC. Those interested in reviewing and/or commenting on the proposed changes to the disciplinary, election, and membership procedures should look for publication of the proposal in the Federal Register and should submit comments to the SEC by the date indicated in the Federal Register Release.

 

Questions concerning this Notice should be directed to Sharon Zackula or Mary Dunbar, Office of General Counsel, NASD Regulation, at (202) 728-8985 or (202) 728-8252, respectively.