[Federal Register Volume 62, Number 52 (Tuesday, March 18, 1997)]
[Notices]
[Pages 12866-12871]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6714]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38380; File No. SR-NASD-97-11]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change and Amendment No. 1 by National Association of Securities
Dealers, Inc. Relating to the Release of Disciplinary Information
March 10, 1997.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on February
11, 1997, the NASD Regulation, Inc. (``NASD Regulation'') filed with
the Securities and Exchange Commission (``SEC'' or ``Commission'') the
proposed rule change and on March 10, 1997, proposed Amendment No. 1.
The proposed rule change and Amendment No. 1 are 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.
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NASD Regulation is proposing to amend the Interpretation on the
Release of Disciplinary Information in IM-8310-2 of the Rules of the
National Association of Securities Dealers, Inc. (``NASD'' or
``Association''). Below is the text of the proposed rule change.
Proposed new text is in italics; deleted text is in brackets.
IM-8310-2 Release of Disciplinary Information \1\
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\1\ The underlined language in paragraph (a) treats as if
adopted the language changes already proposed in file SR-NASD-96-38.
File SR-NASD-96-38 has been published for comment in Securities
Exchange Act Release No. 37994 (November 27, 1996), 61 FR 64549
(December 5, 1996).
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(a) The Association shall, in response to a written inquiry,
electronic inquiry, or telephonic inquiry via a toll-free telephone
listing, release certain information [as] contained in its files
regarding the employment and disciplinary history of members and their
associated persons, including information regarding past and present
employment history with Association members; all final disciplinary
actions taken by federal, [or] state, or foreign securities agencies or
self-regulatory organizations that relate to securities or commodities
transactions; all pending disciplinary actions that have been taken by
federal or state securities agencies or self-regulatory organizations
that relate to securities and commodities transactions and are required
to be
[[Page 12867]]
reported on Form BD or U-4 and all foreign government or self-
regulatory organization disciplinary actions that [are] relate to
securities or commodities [related] transactions and are required to be
reported on Form BD or U-4 and all criminal indictments, informations
or convictions that are required to be reported on Form BD or Form U-4.
The Association will also release information required to be reported
on Form BD or Form U-4 concerning civil judgments and arbitration
decisions in securities and commodities disputes involving public
customers, pending and settled customer complaints, arbitrations and
civil litigation, current investigations involving criminal or
regulatory matters, terminations of employment after allegations
involving violations of investment related statutes or rules, theft or
wrongful taking of property, bankruptcies less than ten (10) years old,
outstanding judgments or liens, any bonding company denial, pay out or
revocation, and any suspension or revocation to act as an attorney,
accountant or federal contractor.
(b) The Association shall, in response to a request, release to the
requesting party a copy of any identified disciplinary complaint or
disciplinary decision issued by the Association or any subsidiary or
Committee thereof; provided, however, that each copy of:
(1) a disciplinary complaint shall be accompanied by [a] the
following statement [that]: ``The issuance of a disciplinary complaint
represents the initiation of a formal proceeding by the Association in
which findings as to the allegations in the complaint have not been
made and does not represent a decision as to any of the allegations
contained in the complaint. Because this complaint is unadjudicated,
you may wish to contact the respondent before drawing any conclusions
regarding the allegations in the complaint.''
(2) a disciplinary decision that is released prior to the
expiration of the time period provided under the [Code of Procedure]
Rule 9000 Series for appeal or call for review within the Association
or while such an appeal or call for review is pending, shall be
accompanied by a statement that the findings and sanctions imposed in
the decision may be increased, decreased, modified, or reversed by the
Association;
(3) a final decision of the Association that is released prior to
the time period provided under the [Securities Exchange] Act [of 1934]
for appeal to the Commission or while such an appeal is pending, shall
be accompanied by a statement that the findings and sanctions of the
Association are subject to review and modification by the Commission;
and
(4) a final decision of the Association that is released after the
decision is appealed to the Commission shall be accompanied by a
statement as to whether the effectiveness of the sanctions has been
stayed pending the outcome of proceedings before the Commission.
(c) (1) The Association shall release to the public information
with respect to any disciplinary complaint initiated by the Department
of Enforcement of NASD Regulation, Inc., the NASD Regulation, Inc.
Board of Directors, or the NASD Board of Governors containing an
allegation of a violation of a designated statute, rule or regulation
of the Commission, NASD, or Municipal Securities Rulemaking Board, as
determined by the NASD Regulation, Inc. Board of Directors (a
``Designated Rule''); and may also release such information with
respect to any disciplinary complaint or group of disciplinary
complaints that involve a significant policy or enforcement
determination where the release of information is deemed by the
President of NASD Regulation, Inc. to be in the public interest.
(2) Information released to the public pursuant to subparagraph
(c)(1) shall be accompanied by the statement required under
subparagraph (b)(1).
[(c)](d) (1) The Association shall [report to the membership and to
the press pursuant to the procedures and at the times outlined herein
any order of] release to the public information with respect to any
disciplinary decision issued pursuant to the Rule 9000 Series imposing
a suspension, cancellation or expulsion of a member: or suspension or
revocation of the registration of a person associated with a member; or
suspension or barring of a member or person associated with a member
from association with all members; or imposition of monetary sanctions
of $10,000 or more upon a member or person associated with a member; or
containing an allegation of a violation of a Designated Rule; and may
also release such information with respect to any disciplinary decision
or group of decisions that involve a significant policy or enforcement
determination where the release of information is deemed by the
President of NASD Regulation, Inc. to be in the public interest. The
[Board of Governors] National Business Conduct Committee (NBCC) may, in
its discretion, determine to waive the [notice provisions set forth
herein as to an order of imposition of monetary sanctions of $10,000 or
more upon a member or person associated with a member,] requirement to
release information with respect to a disciplinary decision under those
extraordinary circumstances where [notice] the release of such
information would violate fundamental notions of fairness or work an
injustice.
(2) Information released to the public pursuant to subparagraph
(d)(1) shall be accompanied by a statement to the extent required for
that type of information under subparagraphs (b)(2)-(4).
[(d)] (e) If a decision [of a District Business Conduct Committee]
issued pursuant to the Rule 9000 Series other than by the NBCC is not
appealed to or called for review by the NBCC, the [order of the
District Business Conduct Committee] decision shall become effective on
a date set by the Association but not before the expiration of 45 days
after the date of decision. [Notices of decisions imposing monetary
sanctions of $10,000 or more or penalties of expulsion, revocation,
suspension and/or the barring of a person from being associated with
all members shall promptly be transmitted to the membership and to the
press, concurrently; provided, however, no such notice shall be sent
prior to the expiration of 45 days from the date of the said decision.]
[(e)] (f) Notwithstanding paragraph [(d)] (e), expulsions and bars
imposed pursuant to the provisions of Rules 9217 and 9226 shall become
effective upon approval or acceptance by the [National Business Conduct
Committee] NBCC, and [publicity] information regarding any sanctions
imposed pursuant to those Rules may be [issued] released to the public
pursuant to paragraph (d) immediately upon such approval or acceptance.
[(f)](g) If a decision [of a District Business Conduct Committee]
issued pursuant to the Rule 9000 Series is appealed to or called for
review by the NASD Regulation, Inc. Board of [Governors] Directors or
called for review by the NASD Board of Governors, [the order of the
District Business Conduct Committee is] the decision shall be stayed
pending a final determination and decision by the Board [and notice of
the action of the District Business Conduct Committee shall not be sent
to the membership or the press during the pendency of proceedings
before the Board of Governors].
[(g)](h) If a final decision of the Association is not appealed to
the Commission, the sanctions specified in the decision (other than
bars and expulsions) shall become effective on a
[[Page 12868]]
date established by the Association but not before the expiration of 30
days after the date of the decision. Bars and expulsions, however,
shall become effective upon issuance of the decision, unless the
decision specifies otherwise. [Notices of decisions imposing monetary
sanctions of $10,000 or more or penalties of expulsion, revocation,
suspension and/or the barring of a person from being associated with
all members shall promptly be transmitted to the membership and to the
press concurrently; provided, however, that any notice shall be sent
prior to the expiration of 30 days from the date of a decision imposing
sanctions other than expulsion, revocation, and/or the barring of a
person from being associated with all members].
[(h)](i) If a decision of the [Board of Governors] Association
imposing monetary sanctions of $10,000 or more or a penalty of
expulsion, revocation, suspension and/or barring of a member from being
associated with all members is appealed to the Commission, notice
thereof shall be given to the membership and to the press as soon as
possible after receipt by the Association of notice from the Commission
of such appeal and the Association's notice shall state whether the
effectiveness of the Board's decision has [or has not] been stayed
pending the outcome of proceedings before the Commission.
[(i)](j) In the event an appeal to the courts is filed from a
decision by the Commission in a case previously appealed to it from a
decision of the [Board of Governor] Association, involving the
imposition of monetary sanctions of $10,000 or more or a penalty of
expulsion, revocation, suspension and/or barring of a member from being
associated with all members, notice thereof shall be given to the
membership as soon as possible after receipt by the Association of a
formal notice of appeal. Such notice shall include a statement [that]
whether the order of the Commission has [or has not] been stayed.
[(j)](k) Any order issued by the Commission of revocation or
suspension of a member's broker/dealer registration with the
Commission; or the suspension or expulsion of a member from the
Association; or the suspension or barring of a member or person
associated with a member from association with all broker/dealers or
membership; or the imposition of monetary sanctions of $10,000 or more
shall be [made known to the membership of the Association] released to
the public through a notice containing the effective date thereof sent
as soon as possible after receipt by the Association of the order of
the Commission.
[(k)](l) Cancellation of membership or registration pursuant to the
Association's By-Laws, Rules and Interpretative Material shall be [sent
to the membership and, when appropriate, to the press] released to the
public as soon after the effective date of the cancellation as
possible.
[(l)](m) [Notices to the membership and r] Releases to the [press]
public referred to in paragraphs (c) and (d) above shall identify the
Rules and By-Laws of the Association or the SEC Rules violated, and
shall describe the conduct constituting such violation. [Notices]
Releases may also identify the member with which an individual was
associated at the time the violations occurred if such identification
is determined by the Association to be in the public interest.
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
The NASD's Public Disclosure Program (``Program'') currently
provides through the Central Registration Depository (``CRD'') a
synopsis of all pending NASD disciplinary information regarding members
and associated persons, including information on disciplinary
complaints \2\ when they are issued by the Association and disciplinary
decisions when they are issued by any Committee or Board of the
Association. Recently, the SEC approved an amendment that also requires
the Association to provide copies of disciplinary complaints and
decisions upon request.\3\
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\2\ This rule filing relates to ``disciplinary complaints,'' and
does not address ``customer complaints.''
\3\ See, Securities Exchange Act Release No. 37797 (October 9,
1996); 61 FR 53984 (October 16, 1996).
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The Interpretation on the Release of Disciplinary Information
(``Interpretation''), contained in IM-8310-2,\4\ currently permits the
Association to issue information regarding certain specified
significant disciplinary decisions when they become final.\5\ The
specified decisions are those that impose sanctions of a suspension,
bar or fine of $10,000 or more.
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\4\ The Interpretation was previously cited as ``Resolution of
the Board of Governors--Notice to Membership and Press of
Suspensions, Expulsions, Revocations, and Monetary Sanctions and
Release of Certain Information Regarding Disciplinary History of
Members and Their Associated Persons'' and appeared after paragraph
2301 of the NASD Manual, following Article V, Section 1 of the Rules
of Fair Practice.
\5\ The publication of information is normally done through a
monthly press release containing information about significant
disciplinary actions that have become final during the preceding
month. In addition, a more detailed press release may be issued on a
more expedited basis about a case of particular importance.
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As the Program has expanded to provide through CRD a synopsis of
all pending NASD disciplinary information regarding members and
associated persons, including information on the filing of disciplinary
complaints, concerns have arisen that there is a disparity of access to
information. Those individuals that are not familiar with the Program
are not apprised by NASD publication to the membership and the press of
the issuance of a significant complaint regarding a member or
associated person with whom the individual., does business. Moreover,
although individuals that are aware of the Program can obtain
information on any NASD disciplinary decision from CRD, the current
provisions of IM-8310-2 do not permit the Association to be proactive
in providing notification to the membership and the press of non-final
disciplinary decisions and does not permit the Association to also
publicize other (final and non-final) disciplinary decisions that do
not meet the current publication criteria but nonetheless involve a
significant policy or enforcement issue that should be brought to the
attention of the public.
In considering this issue, NASD Regulation believes that the
interests of the public in obtaining improved access to information
concerning significant disciplinary matters must be balanced against
the legitimate interests of respondents not to be subject to unfair
publicity concerning unadjudicated allegations of violations (i.e.,
complaints) and non-final determinations of violations (i.e., non-final
decisions). The proposed rule change seeks to balance these interests
by providing for publicity at the
[[Page 12869]]
Association's initiative of those disciplinary matters that could most
significantly affect investor interests and by enhancing the disclosure
accompanying the release of disciplinary complaints. NASD Regulation
is, therefore, proposing to amend IM-8310-2 to authorize the
Association to release information on those disciplinary complaints
that: (1) contain an allegation of violation of significant designated
SEC, NASD, or Municipal Securities Rulemaking Board (``MSRB'') \6\
rules; or (2) the President of NASD Regulation determines should be
publicized in the public interest. In addition, the Association would
be authorized to release information on final and non-final
disciplinary matters that: (1) meet the current criteria for
significant disciplinary decisions; (2) meet the specific criteria
proposed for disciplinary complaints, or (3) the President of NASD
Regulation determines should be publicized in the public interest.
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\6\ NASD Regulation maintains the authority and responsibility
to enforce compliance with MSRB rules with respect to member firms.
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Notice of Disciplinary Complaints
NASD Regulation is proposing to amend IM-8310-2 to authorize the
Association to release information on those disciplinary complaints
that present the most significant investor protection issues, i.e.,
violations of anti-fraud, anti-manipulation, and sales practices rules
that impact investors. New paragraph (c) to IM-8310-2 would authorize
the Association to release to the public information on NASD-initiated
\7\ disciplinary complaints that contain an allegation of a violation
of a specifically identified statute, rule or regulation of the SEC,
NASD, or MSRB that is determined by the NASD Regulation Board of
Directors to involve serious misconduct that affects investors
(``Designated Rules''). NASD Regulation is proposing to adopt a list of
Designated Rules that includes only those SEC, NASD, and MSRB rules
that prohibit significant fraudulent activity or egregious conduct.
Following is the list of Designated Rules that relate to complaints as
to which information would be automatically released:
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\7\ With respect to the methodology for the release of
information on complaints and decisions, it is anticipated that
information will be released through an omnibus press release (that
is subsequently included in an NASD Notice to Members), a press
release on an individual matter, or through the NASD Regulation
WebSite.
List of Designated Rules
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Sec Rules
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Rule 10b-5............................................. Employment of Manipulative and Deceptive Devices.
Rules 15g-1 to 15g-9................................... Sales Practice Requirements for Certain Low-Priced
Securities (Penny Stock Rules).
Section 17(a).......................................... Fraudulent Interstate Transactions.
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NASD Rules
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Rule No. Title
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2110................................................... Standards of Commercial Honor and Principles of Trade.
(Only if the complaint alleges unauthorized trading,
churning, conversion, material misrepresentations or
omissions to a customer, front-running, trading ahead
of research reports, excessive mark-ups).
2120................................................... Use of Manipulative, Deceptive, or Other Fraudulent
Devices.
2310................................................... Recommendations to Customers (Suitability).
2330................................................... Customers' Securities or Funds.
2440................................................... Fair Prices and Commissions.
3310................................................... Publication of Transactions and Quotations.
3330................................................... Payment Designed to Influence Market Prices, Other than
Paid Advertising.
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MSRB Rules
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Rule Title
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Rule G-19.............................................. Suitability of Recommendations and Transactions.
Rule G-30.............................................. Prices and Commissions (Mark-ups).
Rules G-37 (b) & (c)................................... Political Contributions and Prohibitions on Municipal
Securities Business.
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This list of Designated Rules would be included in the Notice to
Members announcing SEC approval of this proposed rule change. In the
future, any changes to the list will be published by the Association in
a Notice to Members, after approval by the Board.
For the same reasons that support the release of information
concerning complaints, NASD Regulation also believes that the
Association should have authority to release information on
disciplinary complaints that contain allegations of violations of other
rules and regulations not included on the list of Designated Rules but
that nonetheless involved serious misconduct that could affect
investors. It is, therefore, also proposed that new subparagraph (c)(1)
to IM-8310-2 include a provision that would grant authority to the
President of NASD Regulation to issue information on ``any complaint or
group of complaints'' that involve a significant policy or enforcement
determination where the release of the information is deemed to be in
the public interest.
In order to ensure that appropriate disclosures accompany
information on any disciplinary complaint, NASD Regulation is also
proposing to require in new subparagraph (c)(2) of the Interpretation
that any disciplinary complaint be accompanied by disclosure regarding
the status of the complaint. Subparagraph (b)(1) of the
[[Page 12870]]
Interpretation currently requires disclosure that ``the issuance of a
disciplinary complaint represents the initiation of a formal proceeding
by the Association in which findings as to the allegations in the
complaint have not been made and does not represent a decision as to
any of the allegations contained in the complaint.'' The proposed
amendment would expand this disclosure to include the following
statement: ``Because this complaint is unadjudicated, you may wish to
contact the respondent before drawing any conclusions regarding the
allegations in the complaint.'' NASD Regulation believes that this
disclosure will help to enable recipients of the information to view it
in an appropriate context and, thereby, provide appropriate protections
to the respondent.
Notice of Non-Final Disciplinary Decisions
With respect to non-final disciplinary decisions, NASD Regulation
is proposing to amend the Interpretation to require that the current
significance test for release of information on final decisions also be
applied to the release of information on non-final decisions--with the
additional requirement that non-final decisions be accompanied by
appropriate disclosures as to the status of the case. It is proposed,
therefore, that current paragraph (c) of the Interpretation be amended
to be redesignated as subparagraph (d)(1) and to delete the provisions
that currently prevent the Association from releasing information on
non-final disciplinary decisions. As a result of these changes, the
Association would be authorized to release information on non-final
disciplinary decisions that impose monetary sanctions of $10,000 or
more or penalties of expulsion, revocation, suspension, or a bar from
being associated with members firms.
In addition, redesignated subparagraph (d)(1) is proposed to be
amended to require that information on all non-final and final
decisions that contain an allegation of a Designated Rule be released,
regardless of the extent of the sanction or whether any sanction had,
in fact, been imposed. NASD Regulation believes that where information
on a disciplinary complaint is released because it includes an
allegation of violation of one or more Designated Rules, information on
the decision involving the same matter should also be released based on
the same public policy interests that justify the release of complaint
information--regardless of whether the decision results in the finding
of a violation and the imposition of sanctions, a dismissal of the
allegation, or a reversal of earlier findings.
Moreover, consistent with the same provision proposed in
subparagraph (c)(1), it proposed that renumbered subparagraph (d)(1) be
amended to authorize the President of NASD Regulation to release
information on ``any decision or group of decisions'' that involve a
significant policy or enforcement determination where the release of
the information is deemed to be in the public interest.
Renumbered subparagraph (d)(1) allows a waiver of the release of
information in a particular case where the release of information would
be deemed to violate fundamental notions of fairness or work an
injustice. NASD Regulation is proposing to amend this provision to
transfer the authority to grant exceptions from the Board of Governors
of the NASD to the National Business Conduct Committee (``NBCC''), in
order to facilitate consideration of any application for an exception
pursuant to the standard NBCC review procedures for motions by
respondents.
Finally, NASD Regulation is proposing to add new subparagraph
(d)(2) to require that the information required by subparagraphs
(b)(2)-(4) accompany such a non-final decision, thereby providing
appropriate disclosures regarding the status of any non-final
disciplinary decision.
General
The Interpretation is proposed to be amended to replace references
to the ``membership and the press'' with a general reference requiring
the ``public'' release of information on complaints and decisions. Such
a general reference will permit the Association to choose any
appropriate methodology to release information in an environment where
the methodologies for informing the public are changing frequently. It
is believed that the current focus of the Interpretation on releasing
information ``to the membership and the press'' makes a distinction
between forms of publication that is no longer meaningful.\8\
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\8\ At the time this language was originally adopted, it was
most likely assumed that only NASD members would have access to
information published to the membership and the general public would
have access to such information only through the press. Today, NASD
Notices to Members that contain information on disciplinary
decisions and cancellations of membership are available through a
number of electronic third-party vendors, including LEXIS, with the
result that persons outside of the membership have the same access
to releases to the ``membership'' as they do to information
published by the press. It is also anticipated that the
Association's WebSite on the Internet will post information that was
previously issued through press releases and Notices to Members,
further blurring the distinction between these two forms of
publication. Finally, the ``press'' now makes information available
to the public through different technologies, including broadcast
and computer-accessed media.
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Moreover, renumbered subparagraphs (e), (g), and (h) are proposed
to be amended to delete current language prohibiting the release of
information until the expiration of the time for appeal or call for
review or during the pendency of any appeal. As a result of these
changes, the Association will be permitted to release information on
non-final disciplinary decisions pursuant to the standards adopted in
new subparagraph (d)(1).
Other conforming amendments are proposed to renumbered
subparagraphs (e)-(m).
Implementation of Proposed Rule Change
NASD Regulation is proposing that the proposed rule change be
effective 30 days after the date a Notice to Members is issued
announcing adoption of the proposed rule change and containing the list
of Designated Rules. The Notice to Members will be issued within 45
days of SEC approval.
2. Statutory Basis
NASD Regulation believes that the proposed rule change is
consistent with the provisions of Section 15A(b)(6) of the Act \9\ in
that the proposed rule change to expand the Association's authority to
release information on significant disciplinary complaints and
significant final and non-final disciplinary decisions is consistent
with the Association's obligations to protect investors and the public
interest.
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\9\ 15 U.S.C. Sec. 78o-3.
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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, as amended.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received from Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such
[[Page 12871]]
longer period to be appropriate and publishes its reasons for so
finding or (ii) as to which the self-regulatory organization consents,
the Commission will:
A. by order approve such proposed rule change, or
B. institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549.
Copies of the submission, 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 in the
Commission's Public Reference Room. Copies of such filing will also be
available for inspection and copying at the principal office of the
NASD. All submissions should refer to the file number in the caption
above and should be submitted by April 8, 1997.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12) (1989).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-6714 Filed 3-17-95; 8:45 am]
BILLING CODE 8010-01-M