NASD Notice to Members 04-17 - March 2004

NASD Revises NASD Sanction Guidelines

Executive Summary

This Notice advises NASD members of modifications to the NASD Sanction Guidelines (Guidelines). NASD is modifying General Principles Nos. 1 and 3 of the Guidelines to emphasize its commitment to imposing sanctions in disciplinary actions that are designed to modify the behavior of respondents and to deter future misconduct in the securities industry. The modifications also clarify that NASD may—in egregious cases—suspend or bar a firm from engaging in one or more areas of business. The changes are effective as of March 15, 2004, and apply to all actions as of that date, including pending disciplinary cases.

 

General Principle No. 1 and General Principle No. 3, as modified, may be read in their entirety in Attachment A to this Notice.

 

Questions concerning this Notice may be directed to Carla Carloni, Office of General Counsel, Regulatory Policy and Oversight, at (202) 728-8019.