[Federal Register Volume 60, Number 3 (Thursday, January 5, 1995)]
[Notices]
[Pages 1816-1817]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-193]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35167; File No. SR-NASD-94-75]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by National Association of
Securities Dealers, Inc. Relating to the Modification of Filing Fees
Under Sections 43(e) and 44(e) of the NASD's Code of Arbitration
Procedure
December 28, 1994.
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 December
13, 1994, the National Association of Securities Dealers, Inc.
(``NASD'' or ``Association'') 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 the NASD. The NASD has designated this proposal as one establishing
or changing a fee under Section 19(b)(3)(A)(ii) of the Act, which
renders the rule effective upon the Commission's receipt of this
filing. The Commission is publishing this notice to solicit comments on
the proposed rule change from interested persons. [[Page 1817]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The NASD is proposing to amend Sections 43(e) and 44(e) of the Code
of Arbitration Procedure (``Code'') to modify the non-refundable filing
fee for industry parties when submitting claims, disputes or
controversies which do not involve, disclose or specify monetary
relief.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the NASD 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. The NASD 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
The Code presently provides in Section 43(a) that an industry
claimant whose dispute, claim or controversy involves, discloses or
specifies a money claim, regardless of the amount, must submit a non-
refundable claim filing fee of $500. However, the Code also provides in
Sections 43(e) and 44(e) that any party, including public customers and
industry parties, whose dispute, claim or controversy does not involve,
disclose or specify monetary damages shall submit a non-refundable
filing fee of only $250.
The NASD has determined that there have been situations in which
industry parties have purposely not disclosed the monetary amount of
their claim in order to reduce the non-refundable fee from $500 to
$250. Therefore, the NASD is proposing to amend Sections 43(e) and
44(e) of the Code to require that a uniform, non-refundable $500 filing
fee be assessed against all industry parties, regardless of whether the
dispute, claim or controversy involves, discloses or specifies a money
claim. However, Section 43(e) will retain the current claim-filing fee
of $250 for public customers whose dispute, claim or controversy does
not involve, disclose, or specify a money-claim.
The NASD believes that the proposed rule change is consistent with
the provisions of Section 15A(b)(5)\1\ of the Act, which require that
the rules of the Association provide for the equitable allocation of
reasonable dues, fees and other charges among members, and the
provisions of Section 15A(b)(6) of the Act, which require that the
rules of the Association be designed to prevent fraudulent and
manipulative acts, promote just and equitable principles of trade, and
protect investors and the public interest, in that the proposed rule
clarifies that the correct filing fee for industry parties in an
arbitration case, regardless of whether an amount of claim is stated,
is $500, which prevents industry parties from unfairly and improperly
avoiding the proper amount of fees to be assessed when filing a claim
under the Code.
\1\15 U.S.C. Sec. 78o-3.
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(B) Self-Regulatory Organization's Statement on Burden on Competition
The NASD 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
The foregoing rule change has become effective upon filing pursuant
to Section 19(b)(3)(A)(ii) of the Act and subparagraph (e) of Rule 19b-
4 thereunder in that it constitutes a due, fee or other charge.
At any time within 60 days of the filing of a rule change pursuant
to Section 19(b)(3)(A) of the Act, the Commission may summarily
abrogate the 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. 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 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 (SR-NASD-94-75) and should be submitted by [insert date 21 days
from the date of publication].
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. 95-193 Filed 1-4-95; 8:45 am]
BILLING CODE 8010-01-M