[Federal Register Volume 59, Number 117 (Monday, June 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14885]


[[Page Unknown]]

[Federal Register: June 20, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34207; File No. SR-NASD-94-29]

 

Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by National Association of 
Securities Dealers, Inc. Relating to Assessments and Fees on Members

June 13, 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 May 23, 
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 Sec. 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 50%, to 62%.

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. The NASD 
also allows a credit against such assessment pursuant to Subsection (d) 
to Section 1. 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 
final actual gross income reports for 1993, the NASD is proposing to 
amend the credit to adjust member assessments to reflect the 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 59%, to 62%, and applies the credit to 
the entire 1994 calendar budget year.
    The NASD believes that the proposed rule change is consistent with 
the provisions of Section 15A(b)(5) of the Act,\1\ 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 equitable adjusts the 1994 assessment credit rate 
based on the projected 1994 operating budget and actual gross income 
reports for 1993.
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    \1\15 U.S.C. 780o-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 Paragraph (e)(2) of Rule 19b-
4\2\ promulgated thereunder in that it constitutes a due, fee or other 
charge.
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    \2\17 CFR 240.19b-4.
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    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 amendment, 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 file number SR-NASD-94-29 and 
should be submitted by July 11, 1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\3\
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    \3\17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-14885 Filed 6-17-94; 8:45 am]
BILLING CODE 8010-01-M