[Federal Register Volume 69, Number 17 (Tuesday, January 27, 2004)]
[Notices]
[Pages 3973-3974]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-1666]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49110; File No. SR-NASD-2003-184]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the National Association of Securities Dealers, Inc. To 
Require Members To Review and Update Executive Representative Contact 
Information on a Quarterly Basis

January 21, 2004.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'')\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on December 8, 2003, the National Association of Securities Dealers, 
Inc. (``NASD''), filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in items I, II, 
and III below, which items have been prepared by NASD. 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    NASD is proposing to require members to review and, if necessary, 
update their executive representative (``Representative'') contact 
information on a quarterly basis. The text of the proposed rule change 
is below. Proposed new language is in italics.\3\

    \3\ The Commission notes that NASD filed the proposed rule 
change with a typographical error in the proposed rule text. In this 
instance, because the error was technical in nature, the Commission 
did not require NASD to file an amendment to the proposed rule 
change. In the future, the Commission expects that NASD will 
carefully review proposed rule changes before filing them with the 
Commission to ensure their accuracy.
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1000. MEMBERSHIP, REGISTRATION AND QUALIFICATION REQUIREMENTS

* * * * *
1150. Executive Representative
    Each member must review and, if necessary, update its executive 
representative designation and contact information as required by 
Article IV, Section 3 of the NASD By-Laws within 17 business days after 
the end of each calendar quarter.
* * * * *

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, 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. 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

1. Purpose
    Under Article IV, section 3 of the NASD By-Laws, members must 
appoint and certify to NASD one Representative to represent, vote, and 
act for the member in all affairs of NASD. The Representative must be a 
member of senior management and a registered principal of the member. 
In addition, the Representative is required to maintain an Internet 
electronic e-mail account for communication with NASD and must update 
firm contact information.
    Given the important role of the Representative in representing, 
voting, and acting for the member, NASD believes that members should 
review and update the Representative designation and contact 
information periodically to ensure its accuracy. Accordingly, the 
proposed rule change would require that each member conduct a review 
and, if necessary, update its Representative information on a quarterly 
basis, specifically within 17 business days after the end of each 
calendar quarter. NASD is examining different methods of reminding 
members of their need to review and update their Representative 
information on a quarterly basis, including the possibility of a Web 
page linked to the act of filing the FOCUS report that would prompt 
members to update such designation and contact information and/or 
through e-mail reminders to the firm.
2. Statutory Basis
    NASD believes that the proposed rule change is consistent with the 
provisions of section 15A(b)(6) of the Act \4\, which requires, among 
other things, that NASD's rules be designed to prevent fraudulent and 
manipulative acts and

[[Page 3974]]

practices, to promote just and equitable principles of trade, and, in 
general, to protect investors and the public interest. NASD believes 
that this proposed rule change will ensure that members' Representative 
contact information is accurate and that NASD can timely contact 
members.
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    \4\ 15 U.S.C. 78o-3(b)(6).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    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

    Comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which NASD consents, the Commission will:
    A. By order approve such proposed rule change, or
    B. Institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether 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, DC 20549-0609. 
Comments may also be submitted electronically at the following e-mail 
address: [email protected]. All comment letters should refer to 
File No. SR-NASD-2003-184. This file number should be included on the 
subject line if e-mail is used. To help the Commission process and 
review comments more efficiently, comments should be sent in hardcopy 
or by e-mail but not by both methods. 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 file number SR-NASD-2003-184 and should be 
submitted by February 17, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-1666 Filed 1-26-04; 8:45 am]
BILLING CODE 8010-01-P