NASD Notice to Members 00-56 - August 2000 

SEC Approves Changes to Rule Regarding the Code of Procedure

Executive Summary

On August 1, 2000, the Securities and Exchange Commission (SEC or Commission) approved rule changes proposed by the National Association of Securities Dealers, Inc. (NASD® or Association) that amend the NASD Code of Procedure (the Code) and other provisions to: set forth more clearly the Department of Market Regulation's role in disciplinary proceedings; clarify the authority of Hearing Officers and make some limited changes to that authority; clarify the scope of the Association's document production requirements; provide for hearing panel review of staff determinations to impose limitations on member firms' business activities because of financial and/or operational difficulties; provide for changes to the process for appeals of disciplinary actions, statutory disqualification proceedings, and certain other accelerated proceedings; provide for a streamlined process to impose bars or expulsions for the failure to provide information to the Association; and provide for a process by which the Association can more expeditiously cancel memberships of firms that fail to meet the Association's eligibility and qualification standards.


Questions regarding this Notice may be directed to Eric Moss, Assistant General Counsel, Office of General Counsel, NASD Regulation, Inc. (NASD RegulationSM), at (202) 728-8982.