SEC Approves Rule Change To Permit Publication Of All Final Litigated Decisions Issued By The Office Of Hearing Officers, The National Adjudicatory Council, And The NASD Board
Effective Date: July 10, 2000
Legal & Compliance
The National Association of Securities Dealers, Inc. (NASD®) publishes disciplinary decisions that meet certain criteria; these criteria are outlined in Interpretative Material 8310-2 (the Interpretation). On May 15, 2000, the Securities and Exchange Commission (SEC) approved a change to the Interpretation to permit publication of all final, litigated decisions issued by the Office of Hearing Officers (OHO), the National Adjudicatory Council (NAC), and the NASD Board. Under the approved change, a decision that does not satisfy the enumerated criteria of the Interpretation will be released, but will not identify the parties to the decision. The rule change becomes effective on July 10, 2000, but permits publication of all final, litigated decisions issued after August 7, 1997, the effective date of the current NASD Code of Procedure.1 Attachment A includes the amendments to the Interpretation.
Questions regarding this Notice should be directed to Sarah Williams, Assistant General Counsel, Office of General Counsel, NASD Regulation, Inc. (NASD RegulationSM), at (202) 728-8083.
Some, but not all, NASD disciplinary decisions are currently released to the public. The Interpretation permits the NASD to release to the public any disciplinary decision that:
Because disciplinary decisions provide guidance in the interpretation and enforcement of NASD rules, it is in the public interest to make available all final, litigated decisions issued by the OHO, the NAC, and the NASD Board. Accordingly, the SEC approved amendments to the Interpretation to provide for the publication of these decisions. However, the names of the parties and other identifying information mentioned in decisions that do not meet the current enumerated publication criteria, as outlined in the Interpretation (and listed above), will be redacted from these decisions. These amendments do not apply to Settlements; Letters of Acceptance, Waiver, and Consent; and Minor Rule Violation Plan letters. The amendments will have no impact on the information contained in the Web Central Registration Depository (CRDSM) system, and disclosed to a requesting party pursuant to Interpretative Material 8310-2(b).
When this rule change becomes effective, all final, litigated OHO, NAC, and NASD Board decisions issued after August 7, 1997 (the effective date of the current NASD Code of Procedure) will be publicly available.
1 See Special Notice to Members 97-55.
Text Of Amendments
(Note: New text is underlined.)
IM-8310-2. Release of Disciplinary Information