Letter to Members - September 18, 2006

September 18, 2006

Dear NASD Member,

In early September, the Small Firm Advisory Board met in Washington, DC, and I wanted to report back to you on a few key issues we discussed.

Mary Schapiro, NASD's new Chairman and CEO, opened our meeting by announcing that NASD has just created two new task forces as part of its efforts to improve communications with smaller firms:

  • The Small Firm Rules Impact Task Force has been created to examine how existing NASD rules impact smaller firms. According to Mary, this group will focus on possible opportunities to either amend or modernize certain conduct rules that may be particularly burdensome for small firms. And, while NASD says that it cannot make any guarantees, they are committed to working with us on reviewing these rules. Debbie Castiglioni of Cutter & Company will be chairing the committee.
  • The Small Firm Advisory Board Task Force will be reviewing how the SFAB is structured and the way that we bring members on to our Board. Mary stated that she thought it was a good time for this kind of review—especially with her role change at NASD and considering that the SFAB has been structured the same way since it was formed in 1998. By putting together a group of small firm representatives to look at how the SFAB operates, NASD is looking to make sure that it addresses the broadest range of small firm issues in the most effective way possible. SFAB Vice Chair Lou Denton of Borer Denton & Associates will be chairing the committee.

In addition to discussing NASD's new task forces, one of the other things we talked about at our meeting was how the SFAB could better keep you updated on the work the SFAB is doing on behalf of small firms.

So, in addition to the periodic "small firm hot topics" communications you have been getting from me, you can now expect to receive a regular update from the SFAB member in your District after each of our meetings. We will report back to you on the issues that come before us and what we're doing to bring them to the attention of NASD. It's our intent not only to keep you informed about our activities, but to keep you involved, as well.

As usual, please contact me or any other SFAB Board member if you have any questions or concerns.


Bill Alsover


Small Firm Advisory Board