[Federal Register Volume 59, Number 249 (Thursday, December 29, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-32098] [[Page Unknown]] [Federal Register: December 29, 1994] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-35138; File No. SR-NASD-94-59] Self-Regulatory Organizations; Order Approving Proposed Rule Change by National Association of Securities Dealers, Inc. Relating to Publication of Final NASD Disciplinary Decisions December 22, 1994. On October 23, 1994, the National Association of Securities Dealers, Inc. (``NASD'' or ``Association'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') a proposed rule change pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder.\2\ The proposed rule change amends the NASD's 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 under Article V, Section 1 of the Association's Rules of Fair Practice (``Resolution'').\3\ --------------------------------------------------------------------------- \1\15 U.S.C. Sec. 78s(b)(1). \2\17 CFR 240.19b-4. \3\NASD Manual, Rules of Fair Practice, Art. V, Sec. 1 (CCH) 2301. --------------------------------------------------------------------------- Notice of the proposed rule change, together with the substance of the proposal, was provided by issuance of a Commission release (Securities Exchange Act Release No. 34954, November 9, 1994) and by publication in the Federal Register (59 FR 59263, November 16, 1994). No comment letters were received. This order approves the proposed rule change. The Resolution currently requires that a final decision of the NASD's National Business Conduct Committee (``NBCC'') or the Board of Governors of the NASD (``Board'') be promptly transmitted to the membership and to the press concurrently, if it imposes 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. However, the Resolution currently does not permit such a notice to be sent prior to the expiration of 30 days from the date of a decision. Upon review, the NASD determined that it should: (i) eliminate the 30 day notification delay regarding NASD final decisions ordering the most serious sanctions (i.e., expulsion, revocation, and/ or the baring of a person from being associated with all members); and (ii) notify the membership and the press promptly upon issuance of a final decision of expulsion, revocation, and/or the barring of a person from being associated with all members. The rule change approved herein eliminates the 30 day notification delay regarding an NASD final decision ordering expulsion, revocation, and/or the barring of a person from being associated with all members. However, the rule change does not alter the 30 day notification delay with respect to a decision imposing sanctions other than expulsion, revocation, and/or the barring of a person from being associated with all members, nor does it alter the Resolution's current procedures with respect to decisions of the District Business Conduct Committees. The Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to the NASD and, in particular, the requirements of Section 15A(b)(6) of the Act.\4\ Section 15A(b)(6) requires, inter alia, that the NASD's rules be designed to prevent fraudulent and manipulative acts, promote just and equitable principles of trade, and protect investors and the public interest. The Commission believes that promptly notifying NASD members and the press of a final decision of the NBCC or the Board ordering an expulsion, revocation, and/or the barring of a person from being associated with all members will provide important information to investors, thereby serving the interest of investor protection. --------------------------------------------------------------------------- \4\15 U.S.C. Sec. 78o-3. --------------------------------------------------------------------------- It Is Therefore Ordered, pursuant to Section 19(b)(2) of the Act, that File No. SR-NASD-94-59 be, and hereby is, approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority, 17 CFR 200.30-3(a)(12). Margaret H. McFarland, Deputy Secretary. [FR Doc. 94-32098 Filed 12-28-94; 8:45 am] BILLING CODE 8010-01-M