Notice to Members 99-16
SEC Approves Changes to Rules Regarding Membership and Registration; Investigation and Sanctions; and Conduct and Code of Procedure
On December 28, 1998, the Securities and Exchange Commission (SEC) approved rule changes proposed by the National Association of Securities Dealers, Inc. (NASD® or Association) that amend the Rules of the Association to permit the Department of Enforcement to amend complaints one time prior to the filing of responsive pleadings, without Hearing Officer approval; to clarify and consolidate default provisions and shorten the call for review period for default decisions to 25 days; to require the Office of General Counsel to issue decisions in settled cases; to change the trigger date for which the timing of motions to introduce new evidence is keyed; to make certain sanctions effective 30 days after the service of the decision constituting final disciplinary action; to provide that decisions involving bars or expulsions be served by overnight courier, facsimile, or other means likely to obtain prompt service; to permit the Advertising Department staff to impose advertising pre-use filing requirements on members; to consolidate procedures for cancellation or suspension for failure to provide requested information; to simplify and expedite certain non-summary procedures in the Rule 9500 Series; and for other purposes.
The rule changes become effective on March 26, 1999. Questions regarding this Notice should be directed to Eric Moss, Assistant General Counsel, Office of General Counsel, NASD Regulation, Inc. (NASD RegulationSM), (202) 728-8982.