NASD Notice to Members 04-23 - March 2004

NASD Seeks Comment on (1) Amending Its Minor Rule Violation Plan (MRVP) to Include Failure Timely to Submit Amendments to the Uniform Termination Notice for Securities Industry Registration (Form U5); and (2) Adopting a Rule to Create an Inactive Disclosure Review Registration Status; Comment Period Expires April 19, 2004

Executive Summary

In July 2002, an NASD task force (the Public Information Review or PIR Task Force) initiated a comprehensive review of disciplinary and other information that NASD makes public, including the information released under NASD Interpretive Material 8310-2 (IM-8310-2). NASD is requesting comment from its members and other interested parties on two of the PIR Task Force’s recommendations: (1) expanding the coverage of NASD’s MRVP to include the failure to amend the Uniform Termination Notice for Securities Industry Registration (Form U5) in a timely manner; and (2) creating an “Inactive Disclosure Review” (Inactive DR) registration status that would require a registered individual to cease all activities requiring registration and prohibit that individual from functioning in any capacity requiring registration until the member either reports or updates a disclosure item on a Uniform Application for Securities Industry Registration or Transfer (Form U4) or provides the disclosure documentation requested for that individual. These proposals are part of a multi-pronged effort to help ensure that members make required disclosures on all Uniform Forms in a timely manner.

 

Questions concerning this Notice may be directed to Victoria M. Pawelski, Assistant Chief Counsel and Assistant Director, Registration and Disclosure, at (240) 386-4803; or Shirley H. Weiss, Associate General Counsel, Office of General Counsel, Regulatory Policy and Oversight, at (202) 728-8844.

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The views, expressions, findings and opinions expressed in the comments on this Web page are solely those of the author(s) and FINRA accepts no responsibility for the content of the comments.


Comments By Date Received
Cutter & Company, Inc. (PDF 30 KB) 3/22/2004
Scott D. Ruczko (PDF 27 KB) 3/25/2004
Cantella & Co., Inc. (PDF 72 KB) 3/29/2004
Anonymous (PDF 27 KB) 4/18/2004
Hochman & Baker, Inc. (PDF 30 KB) 4/19/2004
Financial Network (PDF 36 KB) 4/19/2004
Empire Corporate FCU (PDF 49 KB) 4/19/2004