NASD is proposing to amend Rule 3010 and adopt related interpretive material to require each member to designate a Chief Compliance Officer who, jointly with a member's Chief Executive Officer, must certify annually that the member has in place adequate compliance and supervisory policies and procedures. The proposed rule changes are intended to enhance investor protection by encouraging senior management to focus increased attention to a member's compliance and supervisory systems and by fostering regular interaction between business and compliance officers. The proposal also would promote joint consideration by the Chief Compliance Officer and senior management of specific compliance problems or initiatives. This proposal is intended to foster greater investor protection by providing a strong consultative voice to Chief Compliance Officers in their dealings with other supervisors, managers, and officers of the member. The accompanying interpretive material makes it clear that the obligation of the Chief Executive Officer and Chief Compliance Officer is limited to executing the certification upon a reasonable basis that comports with the high standards of commercial honor and just and equitable principles of trade. Provided that the signatories execute upon such a basis, neither would incur any greater liability for the adequacy of supervisory and compliance policies and procedures than would otherwise be the case in the absence of this certification.
Questions or comments concerning this Notice may be directed to Philip Shaikun, Assistant General Counsel, Regulatory Policy and Oversight, at 202-728-8451.
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