NASD Notice to Members 06-55 - September 2006

NASD Revises Sanction Guidelines to Further Address Consideration of a Firm's Size

Executive Summary

This Notice advises NASD member firms of modifications to the NASD Sanction Guidelines (Guidelines). NASD has amended the General Principles Applicable to All Sanction Determinations (General Principles) to clarify that adjudicators should consider a firm's size and available resources when imposing monetary sanctions. In particular, as revised, the Guidelines state that, in determining sanctions for violations that are not egregious and do not involve fraud, adjudicators should take into account a firm's revenues, as well as other factors indicative of firm size. The revisions also state that, as a result of adjudicators' consideration of size and available resources, a fine that is below the minimum level otherwise recommended in the Guidelines may be imposed. The revisions to the General Principles are effective immediately and are available on NASD's Web site at www.finra.org/Industry/Enforcement/SanctionGuidelines/index.htm.

 

Questions concerning this Notice may be directed to Carla Carloni, Office of General Counsel, Regulatory Policy and Oversight, at (202) 728-8019.