NASD Notice to Members 04-09 - February 2004

SEC Announces Immediate Effectiveness of Amendments to Section 4 of Schedule A to the NASD By-Laws

Executive Summary

The Securities and Exchange Commission (SEC) has announced the immediate effectiveness of amendments to Section 4 of Schedule A to the NASD By-Laws establishing a late fee of $10 dollars per day, up to a maximum of $300, to be assessed by NASD against members that fail timely to report a new disclosure event or a change in the status of a disclosure event previously reported on an initial Form U5, an amendment to a Form U5, or an amendment to a Form U4. NASD will assess this fee starting on the day following the last date on which the event was required to be reported under NASD rules.

 

The amendments to Section 4 become operative on March 8, 2004. As described below, starting on March 8, 2004, there will be a six-month transition period during which NASD will waive certain fees.

 

Questions concerning this Notice may be directed to Ann E. Bushey, Director, Registration and Disclosure, at (240) 386-4724; and Scott Trilling, Assistant Director, Registration and Disclosure, at (240) 386-5113.