| Wednesday, July 27, 2005
Nancy Condon (202) 728-8379
Herb Perone (202) 728-8464
NASD Acts to Clarify, Expand Regulatory Relief For Associated Persons on Active Military Duty
Washington, D.C. — NASD announced today it will file rule amendments to clarify and expand the scope of relief from NASD rules provided to securities industry professionals actively serving in the Armed Forces of the United States.
Since the Sept. 11, 2001, terrorist attacks, NASD has provided tailored regulatory relief to registered industry professionals who volunteer for, or were called into, active military duty. NASD currently permits firms to place a registered representative on "inactive" status, which excuses the representative from continuing education obligations, waives dues and assessments, and ensures that the representative is not subject to the two-year expiration period for securities licenses of individuals who terminate their associations with registered firms. Additionally, NASD has informed firms that registered persons serving in the Armed Forces may continue to receive transaction-related compensation, provided that they do not perform any functions of a registered person while on inactive status.
In response to continuing questions from firms, NASD will propose amendments to NASD rules that will:
NASD will submit formal proposal for these rule amendments to the SEC in the near future.
Investors can obtain more information about, and the disciplinary record of, any NASD-registered broker or brokerage firm by using NASD's BrokerCheck. NASD makes BrokerCheck available at no charge to the public. In 2004, members of the public used this service to conduct more than 3.8 million searches and request almost 190,000 reports for existing brokers or firms. Investors can link directly to BrokerCheck at www.nasdbrokercheck.com. Investors can also access this service by calling (800) 289-9999.
NASD is the leading private-sector provider of financial regulatory services, dedicated to investor protection and market integrity through effective and efficient regulation and complementary compliance and technology-based services. NASD touches virtually every aspect of the securities business - from registering and educating all industry participants, to examining securities firms, enforcing both NASD rules and the federal securities laws, and administering the largest dispute resolution forum for investors and member firms. For more information, please visit our Web site at www.nasd.com.