SR-NASD-2005-007

Proposed Rule Change to Amend the Code of Arbitration Procedure by Adopting a New Interpretive Material (IM) 10308 on Mediators Serving as Arbitrators

NASD has filed with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to amend the Code of Arbitration Procedure (“Code”) by adopting a new Interpretive Material (IM) 10308 to clarify that (1) fees for service as a mediator are not included in determining whether an attorney, accountant, or other professional derives 10% of his or her annual revenue from industry-related parties; and (2) service as a mediator is not included in determining whether an attorney, accountant, or other professional devotes 20% or more of his or her professional work to securities industry clients.