NASD Modifies Disciplinary Proceeding Rules

securities lawyer

By Mark J. Astarita, Esq.


On August 1, 2000, the SEC approved rule changes proposed by the NASD that amend the NASD Code of Procedure (the Code) and other provisions. The changes include provisions to:

  • set forth more clearly the Department of Market Regulation’s role in disciplinary proceedings;
  • clarify the authority of Hearing Officers and make some limited changes to that authority;
  • clarify the scope of the Association’s document production requirements;
  • provide for hearing panel review of staff determinations to impose limitations on member firms’ business activities because of financial and/or operational difficulties;
  • provide for changes to the process for appeals of disciplinary actions, statutory disqualification proceedings, and certain other accelerated proceedings;
  • provide for a streamlined process to impose bars or expulsions for the failure to provide information to the Association; and provide for a process by which the Association can more expeditiously cancel memberships of firms that fail to meet the Association’s eligibility and qualification standards.

The rule changes are included with this Notice (see Attachment A). These changes become effective on September 11, 2000.

The full text of the Notice of the change is available at http://www.nasdr.com/pdf-text/0056ntm.txt

Nothing herein is intended as legal or financial advice. The law is different in different jurisdictions, and the facts of a particular matter can change the application of the law. Please consult an attorney or your financial advisor before acting upon the information contained in this article.

 

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