NASD Notice to Members 04-16 - March 2004

NASD Adopts Rule 2130 Regarding Expungement of Customer Dispute Information From The Central Registration Depository; Effective Date: April 12, 2004

Executive Summary

On December 16, 2003, the Securities and Exchange Commission (SEC) approved new Rule 2130 concerning the expungement of customer dispute information from the Central Registration Depository (CRD® or the CRD system). As further discussed below, Rule 2130 will apply to any request made to a court of competent jurisdiction to expunge customer dispute information from the CRD system that has its basis in an arbitration or civil lawsuit filed on or after April 12, 2004. All requests to expunge customer dispute information from the CRD system arising from arbitrations or civil lawsuits filed before April 12, 2004, including any settlements arising therefrom, will continue to be subject to the terms of the moratorium in effect as of January 19, 1999, as discussed in Notice to Members 99-09 (February 1999).

 

Questions concerning this Notice may be directed to Richard E. Pullano, Associate Vice President/Chief Counsel, Registration and Disclosure, at (240) 386-4821; Jean I. Feeney, Vice President and Chief Counsel, NASD Dispute Resolution, at (202) 728-6959; or Shirley H. Weiss, Associate General Counsel, Office of General Counsel, Regulatory Policy and Oversight, at (202) 728-8844. Technical and procedural questions may be directed to Ann E. Bushey, Director, Registration and Disclosure, at (240) 386-4724. In addition, questions and answers concerning the application of Rule 2130 soon will be available from NASD’s Registration and Disclosure Department at http://www.nasdr.com/3400_filing_online.asp.