NASD Looking For Comments
Yesterday the NASD released a Notice to Members soliciting comments on two proposed rule changes. The proposed amendments appear driven by the NYSE and NASD's ongoing efforts to consolidate member regulation into a single SRO with the expectation and anticipation of reducing regulatory redundancy and inefficiency.
The first proposal includes elimination of the definition of "Office of Supervisory Jurisdiction" contained in Rule 3010(g)(1). According to the NASD, a key effect of this proposal would be "to prevent locations where the only activity being conducted is principal review and approval of research reports from being classified as branch offices under Rule 3010(g)."
The second proposal is to codify the term "initial public offering" for purposes of the NASD research analyst rule to make it consistent with the NYSE research analyst rule. The NASD notes that "[w]hile Rule 2711 does not expressly define the term "initial public offering," NASD has interpreted the term as used in Rule 2711 to have the same meaning as in NYSE Rule 472. As a result, NASD is proposing to amend Rule 2711 to codify this interpretation." Accordingly, it would seem this proposed change is more formulaic that substantive.
For a more complete description on the intended effect and purpose of the proposed rule changes see http://www.nasd.com/web/groups/rules_regs/documents/notice_to_members/nasdw_018691.pdf
Note that comments on the proposed amendments must be submitted to the NASD by March 26, 2007.
The second proposal is to codify the term "initial public offering" for purposes of the NASD research analyst rule to make it consistent with the NYSE research analyst rule. The NASD notes that "[w]hile Rule 2711 does not expressly define the term "initial public offering," NASD has interpreted the term as used in Rule 2711 to have the same meaning as in NYSE Rule 472. As a result, NASD is proposing to amend Rule 2711 to codify this interpretation." Accordingly, it would seem this proposed change is more formulaic that substantive.
For a more complete description on the intended effect and purpose of the proposed rule changes see http://www.nasd.com/web/groups/rules_regs/documents/notice_to_members/nasdw_018691.pdf
Note that comments on the proposed amendments must be submitted to the NASD by March 26, 2007.
