NASD Notice to Members 07-10 - February 2007

SEC Approves Changes to NASD Interpretive Material 8310-2 Regarding the Release of Information through NASD BrokerCheck; Effective Date: March 19, 2007

Executive Summary

The Securities and Exchange Commission (SEC) has approved amendments to Interpretive Material 8310-2 (IM-8310-2), governing the release of information through NASD BrokerCheck (formerly known as NASD’s Public Disclosure Program).1 These amendments expand the information NASD makes available through BrokerCheck and reflect NASD’s commitment to strike a fair balance between investor protection and the privacy interests of member firms and their associated persons. Additionally, NASD is making BrokerCheck more user-friendly and improving its security and integrity by replacing the current method for the electronic delivery of BrokerCheck reports and by introducing a redesigned BrokerCheck Web site. NASD is also introducing an educational component of the BrokerCheck report and Web site that it believes will enable the reader to view disclosure events in the appropriate context and give appropriate weight to all disclosure events when evaluating a particular firm or broker. Upon request, subject to terms and conditions established by NASD and after execution of a licensing agreement prepared by NASD, NASD will also provide a compilation of selected data of NASD members. The amendments to IM-8310-2 and changes to NASD BrokerCheck are effective March 19, 2007. The amended text of IM-8310-2 and IM-8310-3 is attached to this Notice in Attachment A.

 

Questions concerning this Notice may be directed to Richard E. Pullano, Chief Counsel and Associate Vice President, Registration and Disclosure, at (240) 386-4821; or Stefanie M. Watkins, Senior Counsel, Registration and Disclosure, at (240) 386-4824.

 

1Securities Exchange Act Release No. 55127 (January 18, 2007), 72 FR 3455 (January 25, 2007) (SR-NASD-2003-168). These amendments also created IM-8310-3, which was formerly denominated as IM-8310-2(b). IM-8310-3 contains the rules regarding the release of disciplinary complaints, decisions and other information.