NASD Notice to Members 05-32 - April 2005

SEC Approves Amendments to NASD Rule Governing Predispute Arbitration Agreements with Customers

Executive Summary

NASD Rule 3110(f) governs a member's use of predispute arbitration agreements with customers. The Securities and Exchange Commission (SEC) has approved changes to NASD Rule 3110(f) to conform the NASD delivery requirement for predispute arbitration agreements with the SEC's recordkeeping rules.1  The rule change also extends the date by which firms must begin using the disclosure required by the recent changes to NASD Rule 3110(f)(1) from May 1,2005 until June 1, 2005.2  The changes to NASD Rule 3110(f) are attached as Attachment A (new language is underlined; deletions are in brackets).

 

Questions concerning this Notice may be directed to Laura Gansler, Associate General Counsel, Office of General Counsel (OGC),Regulatory Policy and Oversight (RPO), at (202) 728-8275; or Brant K. Brown, Counsel, OGC, RPO, at (202) 728-6927.