[Federal Register Volume 63, Number 206 (Monday, October 26, 1998)]
[Notices]
[Page 57147]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28596]
[[Page 57147]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40570; File No. SR-NASD-98-76]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the National Association of
Securities Dealers, Inc., Relating to Standards for Individual
Correspondence
October 19, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on October 9, 1998, the National Association of Securities Dealers,
Inc. (``NASD'' or ``Association''), through its wholly-owned subsidiary
NASD Regulation, Inc. (``NASD Regulation''), filed with the Securities
and Exchange Commission (``SEC'' or ``Commission'') the proposed rule
change as described in Items I, II, and III below, which Items have
been prepared by NASD Regulation. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
NASD Regulation is proposing to change the effective date for its
members of SR-NASD-98-29, which amended Rule 2210 of the Conduct Rules
of the NASD to require that written or electronic communications
prepared for a single customer be subject to the general standards and
those specific standards of Rule 2210 that prohibit misleading
statements.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NASD Regulation included
statements concerning the purpose of and basis for the proposed rule
change and discussed any comments it received on the proposed rule
change. The text of these statements may be examined at the places
specified in Item IV below. NASD Regulation has prepared summaries, set
forth in Sections A, B, and C below, of the most significant aspects of
such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
SR-NASD-9-29 and amendments Nos. 1 and 2 thereto, were approved by
the SEC on August 26, 1998. In SR-NASD-98-29, the NASD requested that
the amendments be made effective within 45 days of Commission approval.
Because the NASD believes that members may require more time to adjust
their procedures to comply with the amendments, the staff proposes to
change the effective date of the amendments for NASD members. Pursuant
to this proposed rule change, the NASD will make the amendments
effective on November 16, 1998. This effective date will be announced
to member firms in a NASD Notice to Members published in October, 1998.
2. Statutory Basis
NASD Regulation believes that the proposed rule change is
consistent with the provisions of Section 15A(b)(6) of the Act,\3\
which requires among other things, that the Association adopt and amend
its rules to promote just and equitable principles of trade, and
generally provide for the protection of investors and the public
interest.
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\3\ 15 U.S.C. 78o-3(b)(6).
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B. Self-Regulatory Organization's Statement on Burden on Competition
NASD Regulation does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
The foregoing rule change constitutes a stated policy, practice or
interpretation with respect to the meaning, administration, or
enforcement of an existing rule of the NASD and, therefore, has become
effective pursuant to Section 19(b)(3)(A) of the Act \4\ and
subparagraph (e)(1) of Rule 19b-4 thereunder.\5\
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\4\ 15 U.S.C. 78s(b)(3)(A).
\5\ 17 CFR 240.19b-4(e)(1).
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing; including whether the proposed rule
change is consistent with the Act. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549. Copies
of the submissions, all subsequent amendments, all written statements
with respect to the proposed rule change that are filed with the
Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for inspection and copying at the
Commission's Public Reference Room. Copies of such filing also will be
available for inspection and copying at the principal office of the
NASD. All submissions should refer to File No. SR-NASD-98-76 and should
be submitted by November 16, 1998.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 98-28596 Filed 10-23-98; 8:45 am]
BILLING CODE 8010-01-M
