NASD Notice to Members 06-04 - January 2006

SEC Approves Amendments to NASD Rule 3012 to Require Members Relying on Rule 3012's "Limited Size and Resources" Exception to Notify NASD of their Reliance; Effective Date:  February 14, 2006

Executive Summary

On November 18, 2005, the Securities and Exchange Commission (SEC) approved amendments to NASD Rule 3012 to require members relying on the "limited size and resources" exception to Rule 3012's general supervisory requirement for conducting producing managers' supervisory reviews to report electronically to NASD their reliance on the exception.

 

NASD is issuing this Notice to Members (NTM) to advise members of the rule change and to introduce the electronic reporting system that members will need to use to notify NASD of their reliance on Rule 3012's "limited size and resources" exception. Questions and answers relating to the rule change and the reporting system are included. The new rule text is in Attachment A and is effective on February 14, 2006. A sample screen shot of the electronic notification system Web page is in Attachment B.

 

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