Notice to Members 01-27

NASD Revises Sanction Guidelines

The National Adjudicatory Council (NAC) has revised the National Association of Securities Dealers, Inc. (NASD®) Sanction Guidelines (Guidelines). The various bodies that adjudicate disciplinary matters use the Guidelines to determine appropriately remedial sanctions. NASD Regulation, Inc., staff and respondents also use the Guidelines to craft settlements in disciplinary matters. The NAC revised the introductory section, amended individual guidelines, and added several new guidelines. As with prior versions of the Guidelines, in this edition, the NAC does not prescribe fixed sanctions for particular violations. Rather, the NAC encourages adjudicators to exercise discretion and consider the unique facts and circumstances of each particular case.

The revised Sanction Guidelines supersede guidelines previously published by the NAC and referenced in prior NASD Notices to Members. The revised Sanction Guidelines are effective as of April 10, 2001, and apply to all actions as of that date, including pending disciplinary actions.

The revised Sanction Guidelines will be available on the NASD Regulation Web Site ( The Sanction Guidelines will also be available, within the next two months, for purchase in hard-copy format for $35 by calling NASD MediaSource at (240) 386-4200.

Questions concerning this Notice may be directed to Carla Carloni, Associate General Counsel, Office of General Counsel, NASD Regulation, at (202) 728-8019.