[Federal Register Volume 63, Number 49 (Friday, March 13, 1998)]
[Notices]
[Pages 12558-12559]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-6525]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39731; File No. SR-NASD-98-19]
Self-Regulatory Organization; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by National Association of
Securities Dealers, Inc. Relating to Interim Forms and Public
Disclosure Program
March 6, 1998.
On March 2, 1998, the NASD Regulation, Inc. (``NASDR'') filed with
the Securities and Exchange Commission (``Commission'' or ``SEC'') 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 is described in Items I, II, and III below, which
Items have been prepared by NASDR. NASDR has designated this proposal
as one constituting a stated policy, practice, or interpretation with
respect to the enforcement of an existing rule under Section
19(b)(3)(A)(i) \3\ of the Act, which renders the proposal effective
upon receipt of this filing by the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(i).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
NASDR is proposing to postpone the effective date of recently
approved amendments to NASD Interpretive Material 8310-2 and Forms U-4
and U-5.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NASDR 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. NASDR has prepared summaries, set forth in Sections A,
B, and C below, of the most significant aspects of such statements.
[[Page 12559]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for the Proposed Rule Change
1. Purpose
The proposed rule change postpones the effective date of the
amendments set forth in SR-NASD-97-78 that was approved on January 20,
1998.\4\ In that Release, the Commission approved amendments to NASDR's
Public Disclosure Program (``PDP''), as set forth in Interpretive
Material 8310-2, and amendments to the Forms U-4 and U-5. These
amendments were to become effective on February 17, 1998.\5\ Between
January 20 and February 17, 1998, member firms expressed concern that
they did not have sufficient time to change their operations for filing
the Forms and for educating their employees as to changes in the Forms,
and therefore requested that the implementation of the Forms be delayed
for one month.\6\ Because the Forms are designed to provide NASDR with
information that will be used as the basis for the modification to the
PDR, NASDR has determined that it is appropriate to delay the effective
date for the amendments to Interpretive Material 8310-2 as well
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\4\ See Securities Exchange Act Rel. No. 39562 (January 20,
1998), 63 FR 3942 (January 27, 1998). See also Securities Exchange
Act Rel. No. 39442 (December 11, 1997) 62 FR 66706 (December 19,
1997), (partially approving, on an accelerated basis, that portion
of the proposed rule change giving the NASD the option of responding
to electronic inquiries requesting employment and disciplinary
history of its members and their associated persons).
\5\ Id. at p. 3943.
\6\ On February 17, 1998, the NASDR submitted a letter informing
the Division that it was changing the implementation date of the
Interim Forms U-4 and U-5 from February 17, 1998 to March 16, 1998.
See letter from Alden S. Adkins, General Counsel, NASD Regulation,
Inc., to Katherine A. England, Assistant Director, Division of
Market Regulation, SEC, dated February 13, 1998.
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2. Statutory Basis
NASDR believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) \7\ of the Act. NASDR believes that
delaying the effective date of the new rules to ensure that members are
provided with a sufficient amount of time to change their operations so
that Forms U-4 and U-5 are properly submitted will not be inconsistent
with these requirements.
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\7\ Section 15A(b)(6) requires that the rules of the Association
be designed to prevent fraudulent and manipulative acts and
practices, to remove impediments to and perfect the mechanism of a
free and open market, and in general, to protect investors and the
public interest.
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B. Self-Regulatory Organization's Statement on Burden on Competition
NASDR 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
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 pursuant to Section
19(b)(3)(A)(i) of the Act and subparagraph (e) of Rule 19b-4 thereunder
\8\ in that it constitutes a stated policy, practice, or interpretation
with respect to the meaning of an existing rule.
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\8\ 17 CFR 240.19b-4(e)(1).
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At any time within 60 days of the filing of a rule change, 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, including 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, 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 3, 1998.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-6525 Filed 3-12-98; 8:45 am]
BILLING CODE 8010-01-M