Notice to Members 97-19
NASD Regulation and New York Stock Exchange Memorandum Discusses Sweep Report and Provides Guidance on Heightened Supervision Recommendations
The Joint Regulatory Sales Practice Sweep Report recommended that firms should, among other things: adopt stringent procedures for hiring registered representatives; initiate heightened supervisory procedures for registered representatives with a history of customer complaints, disciplinary actions, or arbitrations; and ensure compliance with cold-calling requirements. This Notice to Members contains a memorandum developed and jointly issued by NASD Regulation, Inc. (NASD RegulationSM) and the New York Stock Exchange, Inc. (NYSE) which describes the findings and recommendations of the Joint Regulatory Sales Practice Sweep (Sweep) that would alert firms of their responsibilities under NYSE and NASD rules to provide particularly close supervision to certain registered representatives. The memorandum also describes actions that could constitute heightened supervisory procedures.
Questions concerning this Notice may be directed to Mary Revell, Assistant General
Counsel, NASD Regulation, at (202) 728-8203.
Questions about the Sweep should be directed to Daniel M. Sibears, Vice President,
Member Regulation, NASD Regulation, at (202) 728-6911.