NASD Notice to Members 05-08 - January 2005

Guidance Regarding the Application of the Supervisory Control Amendments to Members’ Securities Activities, Including Members’ Institutional Securities Activities

Executive Summary

On September 30, 2004, the Securities and Exchange Commission (SEC) approved the Supervisory Control Amendments in their final form.1 Previously, on June 17, 2004, the SEC approved similar rule changes proposed by the New York Stock Exchange (NYSE) to enhance its members’ supervisory and supervisory control systems (Internal Control Amendments).2 NASD’s Supervisory Control Amendments and the NYSE’s Internal Control Amendments become effective on January 31, 2005. Although NASD and the NYSE (the SROs) have previously provided their respective members with general guidance regarding the application of the new rule changes,3 additional questions have been raised. Accordingly, the SROs are issuing this joint memorandum to address those issues.

 

Questions or comments concerning this Notice may be directed to Patricia Albrecht, Assistant General Counsel, Office of General Counsel, Regulatory Policy and Oversight, at (202) 728-8026.