Notice to Members 02-23

The NASD Seeks Comment on Proposed Rules Relating to Member Firm Business Continuity Plans and Emergency Contact Information

The NASD is seeking comment from NASD members, investors, and other interested parties on proposed rules that would require members to create and maintain business continuity plans. Following the events of September 11th, most member firms were able to resume their business operations relatively quickly. Building upon the lessons learned from September 11th, the NASD is considering steps that member firms can take to ensure that they are prepared for possible future business disruptions. Through an extensive fact gathering process, including a significant survey initiative, the NASD obtained a wealth of data on the business continuity plans of NASD member firms.

The NASD is seeking comment on whether to require members to create and maintain business continuity plans. Further, the NASD is soliciting comment on whether the NASD should, through the Member Firm Contact Questionnaire, collect additional information about member firms to assist the NASD in the event of future significant business disruptions.

Questions regarding this Notice to Members may be directed to Daniel M. Sibears, Senior Vice President and Deputy, Member Regulation, NASD Regulation, at (202) 728-6911, and Brian J. Woldow, Attorney, Office of General Counsel, NASD Regulation, at (202) 728-6927.