Notice to Members 03-04
NASD Solicits Vote on Amendments to the NASD By-Laws Concerning the Definition of Disqualification and Failure to Pay Arbitration Awards
NASD invites members to vote to approve three amendments to the NASD By-Laws. The first amendment would make the definition of "disqualification" in the NASD By-Laws consistent with the definition of "statutory disqualification" in Section 3(a)(39) of the Securities Exchange Act of 1934 (Exchange Act). The second amendment would permit NASD to suspend for failure to pay an arbitration award former associated persons who terminated their registration before the award was entered. The amendment would provide that NASD can take such action for a period of two years after the award is entered. The third amendment would clarify that NASD may suspend the association, and not just the registration, of any person who fails to pay an arbitration award.
Questions concerning this Notice may be directed to T. Grant Callery, Senior Vice President and General Counsel, NASD Office of General Counsel, at (202) 728-8285, Shirley Weiss, Office of General Counsel, NASD Regulatory Policy and Oversight, at (202) 728-8844, or Sarah Williams, Office of General Counsel, NASD Regulatory Policy and Oversight, at (202) 728-8083.