NASD Notice to Members 96-59 - September 1996

NASD Solicits Member Comment on Proposed Rule Governing Tape Recording of Telephone Conversations; Comment Period Expires October 31, 1996

Executive Summary

The NASD requests comment on proposed amendments to NASD® Rule 3010 (formerly NASD Rules of Fair Practice, Article III, Section 27) to adopt a rule requiring each member firm whose work force is comprised of a specified number of persons that have been associated with a disciplined firm, or each member firm that is itself a disciplined firm, to tape-record telephone conversations of all of its associated persons. The proposed Rule responds to concerns expressed in the SEC/SRO/NASAA Joint Regulatory Sales Practice Sweep Report regarding the need for heightened supervision of certain registered representatives with troubled regulatory and compliance records. The text of the proposed Rule follows the Notice.

 

Questions concerning this Notice may be directed to Mary Revell, Assistant General Counsel, NASD Regulation, Inc., at (202) 728-8203.