NASD Special Notice to Members 98-071 - August 1998

NASD Regulation Requests Comment on Whether to Modify the Public Disclosure Program to Limit the Period for Disclosure of Certain Criminal Information; Comment Period Expires September 30, 1998

Executive Summary

Under the current interpretation governing the Public Disclosure Program, information on all felony offenses is disclosed indefinitely. NASD Regulation, Inc. (NASD Regulation) requests comment from members and other interested persons on whether to: (1) maintain the current interpretation; or (2) amend the interpretation to disclose indefinitely information concerning “investment-related” offenses, as described below, but limit to 10 years disclosure of information concerning all other felonies. Any such change would not affect the information required to be reported on Form U-4 and permanently made available to federal and state regulators, self-regulatory organizations (SROs), and prospective employers in the securities industry. In other words, such information would remain on an individual’s record, but as proposed would not be disclosed publicly after 10 years.