Simplifying, or even removing, regulations in this industry is a goal that every registrant will be happy to hear about. Earlier last year the NASD has announced that it is conducting a comprehensive review of its rules to ensure that they are as streamlined as possible, and “impose the least burden to accomplish their objectives” and asked for comment from the public. The NASD also appointed a special advisory board to look into prospective rule changes.
In Notice to Members 02-10 the NASD is providing its members with what it claims will be the first in a series of questionnaires designed to collect information that will assist the NASD in assessing the costs and benefits of certain rules. The Association is asking member firms to provide responses that include specific explanations of the burdens imposed by a rule and to do so by March 1, 2002.
The rules and proposals which are being examined are whether:
None of these proposals will radically alter the regulatory enviorment, but the attempt to streamline is certainly a worthwhile endeavor. There are far too many overlapping regulations in the securities industry, which are not only a waiting trap for the industry, but an unnecessary compliance burden for all members.
Some of the proposal have merit, some, such as the elimination of a sponsorship requirement for the Series 7 exam, may just be cosmetic, but all member firms should take a few moments and forward the questionaire to the NASD. The questionaire has been sent to all member firms, and is also available at the NASD’s web site as part of the release, at http://www.nasdr.com/pdf-text/0210ntm.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.