NASD Notice to Members 00-16 - March 2000

SEC Approves Changes to NASD Public Disclosure Program (Interpretive Material 8310-2)

Executive Summary

On February 7, 2000, the Securities and Exchange Commission (SEC) approved proposed changes to National Association of Securities Dealers, Inc. (NASD®) Interpretive Material 8310-2 (IM-8310-2), the provision that governs the NASD’s Public Disclosure Program (Program).


In summary, the approved changes clarify that the NASD: (1) will release information about persons formerly associated with a member only for a two-year period following the termination of their registration with the NASD; (2) will release information about terminated persons and firms that is provided on the Form U-6 (the form regulators use to report regulatory actions), if such matters would be required to be reported on the Form U-4 or Form BD; and (3) will begin using automated disclosure reports, which will include verbatim information submitted by filers on uniform forms.


Under this Program, the NASD discloses to the public certain information regarding the employment history, other business experience, and disclosure information of NASD members and their associated persons. The primary purpose of the Program is to help investors make informed choices about the individuals and firms with whom they may wish to do business. The changes approved by the SEC are intended to ensure that the NASD’s disclosure practices are clearer and fairer to NASD members, associated persons, and the public.


For more information about this Notice, please contact the following NASD Regulation, Inc. (NASD RegulationSM) staff: Ann Bushey, Assistant Director, CRD/Public Disclosure, at (301) 590-6389; or Rick Pullano, Associate Director and Counsel, CRD/Public Disclosure, at (301) 212-3789.