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9551. Failure to Comply with Public Communication Standards
This rule is no longer applicable. NASD Rule 9551 has been superseded by FINRA Rule 9551. Please consult the appropriate FINRA Rule.
(a) Notice of Pre-Use Filing Requirement
Pursuant to Rules 2210(c)(5) and 2220(c)(2), NASD staff may issue a written notice requiring a member to file advertising, educational material or sales literature with the NASD Advertising Regulation Department at least ten days prior to use if NASD staff determines that the member has departed from the standards of Rule 2210 or Rule 2220.
(b) Service of Notice of Pre-Use Filing Requirement
NASD staff shall serve the member with such notice in accordance with Rule 9134.
(c) Contents of Notice
A notice issued under this Rule shall state the specific grounds and include the factual basis for the NASD action. The notice shall state when the NASD action will take effect. The notice shall state that the respondent may file a written request for a hearing with the Office of Hearing Officers pursuant to Rule 9559. The notice also shall inform the respondent of the applicable deadline for filing a request for a hearing and shall state that a request for a hearing must set forth with specificity any and all defenses to the NASD action. In addition, the notice shall explain that, pursuant to Rules 8310(a) and 9559(n), a Hearing Officer or, if applicable, Hearing Panel, may approve, modify or withdraw any and all sanctions or limitations imposed by the notice, and may impose any other fitting sanction.
(d) Effective Date of Notice of Pre-Use Filing Requirement
Pursuant to Rules 2210(c)(5) and 2220(c)(2), the pre-use filing requirement referenced in a notice issued and served under this Rule shall become effective 21 days after service of the notice, unless stayed by a request for a hearing pursuant to Rule 9559.
(e) Request for Hearing
A member served with a notice under this Rule may file with the Office of Hearing Officers a written request for a hearing pursuant to Rule 9559. A request for a hearing shall be made before the effective date of the notice, as indicated in paragraph (d) of this Rule. A request for a hearing must set forth with specificity any and all defenses to the NASD action.
(f) Failure to Request Hearing
If a member does not timely request a hearing, the pre-use filing requirements specified in the notice shall become effective 21 days after service of the notice and the notice shall constitute final NASD action.
(g) Request for Modification or Termination of Pre-Use Filing Requirement
A member that is subject to a pre-use filing requirement under this Rule may file a written request for modification or termination of the requirement. Such request shall be filed with the head of the NASD department or office that issued the notice or, if another NASD department or office is named as the party handling the matter on behalf of the issuing department or office, with the head of the NASD department or office that is so designated. The head of the appropriate department or office may grant relief for good cause shown.
Adopted by SR-NASD-2003-110 eff. June 28, 2004.
Selected Notice: 04-36.