[Federal Register Volume 59, Number 15 (Monday, January 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-1545]
[[Page Unknown]]
[Federal Register: January 24, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33488; File No. SR-NASD-94-3]
January 18, 1994.
Self-Regulatory Organizations; Filing and Immediate Effectiveness
of Proposed Rule Change by National Association of Securities Dealers,
Inc. Relating to Credit Against the Annual Assessments and Fees on
Members
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 January
14, 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.
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The NASD is proposing a rule change to amend Schedule A to the By-
Laws to adjust the amount of credit as set forth in Section 1(d) of
Schedule A, which is currently 67%, to 59%, and to amend the calendar
year dates from 1993 to 1994.
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
Pursuant to Article VI of the By-Laws of the Corporation, the NASD
requires its members to pay an annual assessment fee based on gross
income as defined by Schedule A, Section 1 to the By-Laws.\1\ The NASD
also allows a credit against such assessment pursuant to Section 1(d).
The NASD calculates the gross income assessment from the gross income
reported for the calendar or fiscal year preceding the NASD's calendar
budget year. Based on the operating budget for 1994, and subject to
revision based on final actual gross income reports for 1993, the NASD
is proposing to amend the credit to adjust member assessments to
reflect the estimated revenue needed to fund 1994 operations. This
proposed rule change, therefore, amends the amount of credit set forth
in Section 1(d) of Schedule A to the By-Laws, which is currently 67%,
to 59%, and applies the credit to the entire 1994 calendar budget year,
and amends the calendar year dates from 1993 to 1994.\2\
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\1\NASD Manual, Schedule A to the By-Laws, Sec. 1(d), (CCH)
1752.
\2\See Securities Exchange Act Release No. 33363 (December 21,
1993), 58 FR 68974 (December 29, 1993) (noticing file SR-NASD-93-
71).
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The NASD believes that the proposed rule change is consistent with
the provisions of Section 15A(b)(5) of the Act,\3\ which require that
the rules of the Association provide for the equitable allocation of
reasonable dues, fees, and other charges among members in that the
proposed rule change equitably adjusts the 1994 assessment credit rate
based on the projected 1994 budget.
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\3\15 U.S.C. 78o-3 (1988).
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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 Section (e) of Rule 19b-4
promulgated there under in that it constitutes a due, fee or other
charge imposed by a self-regulatory organization.
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 and should be submitted on February 14, 1994.
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. 94-1545 Filed 1-21-94; 10:00 am]
BILLING CODE 8010-01-M