HelpFINRA Manual: Contents
FINRA Manual
Corporate Organization Notices
2002
02-85 NASD Requires Immediate Member Firm Action Regarding Mutual Fund Purchases and Breakpoint Schedules
02-79 NASD Notice of Meeting and Proxy (A proxy package was sent to each NASD Executive Representative on November 4)
02-78 NASD Adopts Amendments to Rule 3011 to Require Members to Provide to NASD Contact Information for an Anti-Money Laundering Compliance Person(s)
02-77 SEC Approves Rule Establishing New Registration Category for Proctors of In-Firm Delivery of the Regulatory Element
02-76 NASD Issues Interpretive Guidance to the Trade Reporting and Compliance Engine Rules (TRACE Rules)
02-71 NASDAQ Provides Guidance on Recent Amendments to "Trade-or-Move" Rule and SuperMontage Opening Process
02-68 Industry parties in California arbitration proceedings must waive contested California arbitrator disclosure standards if all parties who are investors, or associated persons with claims of statutory employment discrimination, have executed waiver agreements
02-67 Broker/Dealer, Investment Adviser Firm, Agent and Investment Adviser Representative Renewals for 2003
02-64 NASD Advises Members that Participation in Tying Arrangements that Violate Federal Statutes Also Violate Just and Equitable Principles of Trade; Requests Information Concerning Such Practices
02-63 NASD Provides Additional Information on Amendments to Section 8 of Schedule A to NASD's By-Laws to Eliminate the Regulatory Fee and to Implement a New Transaction-Based Trading Activity Fee as Announced in Notice to Members 02-41
02-62 NASD Announces Nominees for Regional Industry Member Vacancies on the National Adjudicatory council
02-58 SEC Approves Default Procedures Regarding Suspended or Terminated Respondents Who Fail to Answer Arbitration Claims
02-55 NASD Requests Comment on Proposed New Rule 2712 (IPO Allocations and Distributions) and on an Amendment to Rule 2710 (Corporate Financing Rule)
02-53 NASD Files Proposal to Amend Rule 3070 to Require Filing of Criminal and Civil Complaints and Arbitration Claims with NASD; Revises Letters Sent When Determination Made to Close an Investigation Without Further Action
02-52 NASD Requests Comment on Proposed Amendments to NASD Rule 3010(g)(2) ("Branch Office Definition")
02-51 NASD Requests Comment on Proposed Interpretative Material Regarding Investment Analysis Tools.
02-50 Treasury and SEC Request Comment on Proposed Regulation Regarding Broker/Dealer Anti-Money Laundering Customer Identification Requirements
02-49 NASD Adopts Amendments to IM-8310-2 Concerning Release of Disciplinary Information to the Public
02-48 NASD Amends Section 4 of Schedule A to the NASD By-Laws to Establish a Late Fee for Failure to Pay Annual Renewal Fees on a Timely Basis
02-46 NASD Announces Nomination Procedures for Regional Industry Member Vacancy on the National Adjudicatory Council
02-41 NASD Informs Members of Proposed Changes to NASD's Gross Income Assessment, Personnel Assessment, and Regulatory Fee
02-37 NASD Informs Members of Upcoming District Committee and District Nominating Committee Elections
02-35 NASD Adopts Amendments Regarding the Posting of Margin Disclosure and Day-Trading Risk Disclosure Statements on Web Sites
02-34 SEC Approves Proposed Changes to Rule 3070 Concerning the Reporting of Criminal Offenses by Members and Persons Associated with Members
02-33 SEC Approves Amendments to NASD Rule 2260 Requiring Broker/Dealers to Forward Information Regarding Debt Securities to Beneficial Owners
02-32 SEC Approves NASD Rule Requiring Members to Require Investors to Sign a Disclosure Document as Part of a Subordinated Loan Agreement
02-28 Member Obligations Regarding Long-Term Or Brokered Certificates Of Deposit (Note: This Notice is superseded by Notice to Members 02-69)
02-26 SEC Approves Rule Change Requiring Members To File Information With The Corporate Financing Department Through Its Electronic Filing System
02-23 The NASD Seeks Comment On Proposed Rules Relating To Member Firm Business Continuity Plans And Emergency Contact Information
02-22 Securities Industry/Regulatory Council On Continuing Education Issues A Status Report On The Securities Industry Continuing Education Program
02-21 NASD Provides Guidance To Member Firms Concerning Anti-Money Laundering Compliance Programs Required By Federal Law
02-20 SEC Approves Technical Changes To Forms U-4 And U-5 And Amendment To NASD Interpretive Material 8310-2
02-12 NASD Regulation Adopts Amendments To Relieve Registered Representatives Serving In The Armed Forces From Continuing Education Requirements
02-11 NASD Dispute Resolution Establishes A New Hearing Location In Orlando, Florida, For Arbitration And Mediation Claims Filed In Its Forum
02-07 NASD Regulation Adopts Interpretive Material Prohibiting Interference With The Transfer Of Customer Accounts In The Context Of Employment Disputes
02-05 Changes To FOCUS Resulting From Certain Disclosure And Asset Recognition Requirements Under FASB 140
02-04 NASD Regulation Asks Members Immediately To Adopt "Best Practice" Of Requiring Investors To Sign A Disclosure Document As Part Of Subordination Agreement
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02-34 SEC Approves Proposed Changes to Rule 3070 Concerning the Reporting of Criminal Offenses by Members and Persons Associated with Members
Reporting of Criminal Offenses
Effective Date: July 15, 2002
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Executive Representatives |
Rule 3070 |
Executive Summary
On May 15, 2002, the Securities and Exchange Commission (SEC) approved amendments to NASD Rule 3070, concerning the reporting of criminal offenses by members and persons associated with members. Effective July 15, 2002, these amendments will require the reporting of the following criminal offenses under Rule 3070(a)(5): any felony; misdemeanors involving the purchase or sale of any security, the taking of a false oath, the making of a false report, bribery, perjury, burglary, larceny, theft, robbery, extortion, forgery, counterfeiting, fraudulent concealment, embezzlement, fraudulent conversion, misappropriation of funds or securities; a conspiracy to commit any of these offenses; or substantially equivalent activity in a domestic, military, or foreign court.
The text of the amendment to Rule 3070 as provided in Attachment A becomes effective on July 15, 2002.
Questions/Further Information
Questions concerning this Notice may be directed to Emily Gordy, Director, Regulation Policy, at (202) 728-8070, or Shirley H. Weiss, Associate General Counsel, at (202) 728-8844.
Discussion
Rule 3070, adopted in 1995, assists NASD in the timely identification and investigation of problem members, branch offices, and registered representatives that may pose heightened risks to public investors. Rule 3070 requires members promptly to report to NASD the occurrence of 10 specified events and to file quarterly statistical information concerning customer complaints.1 The reporting requirements under Rule 3070 significantly parallel comparable provisions of NYSE Rule 351 as well as the disclosure requirements of the Uniform Application for Securities Industry Registration or Transfer (Form U-4). Rule 3070 exempts from its provisions any member subject to substantially similar reporting requirements of another self-regulatory organization of which it is a member.
To bring about greater consistency with NYSE Rule 351,2 as well as Questions 14A(1)3 and 14B(1)4 of the Form U-4, NASD has amended NASD Rule 3070 to require the reporting of the following criminal offenses under Rule 3070(a)(5): any felony; misdemeanors involving the purchase or sale of any security, the taking of a false oath, the making of a false report, bribery, perjury, burglary, larceny, theft, robbery, extortion, forgery, counterfeiting, fraudulent concealment, embezzlement, fraudulent conversion, misappropriation of funds or securities; a conspiracy to commit any of these offenses; or substantially equivalent activity in a domestic, military, or foreign court. Previously, Rule 3070(a)(5) required members promptly to report to NASD indictments, convictions, guilty pleas, and no contest pleas with respect to "any criminal offense other than traffic violations."
Effective Date of Amendments
These amendments become effective on July 15, 2002.
ENDNOTES
1 For a complete list of the 10 reporting requirements, members should review Rule 3070.
2 Amended Rule 3070(a)(5) is consistent with recent amendments to NYSE Rule 351(a)(5) that require the reporting of criminal offenses to: any felony; or any misdemeanor that involves the purchase or sale of any security, the taking of a false oath, the making of a false report, bribery, perjury, burglary, larceny, theft, robbery, extortion, forgery, counterfeiting, fraudulent concealment, embezzlement, fraudulent conversion or misappropriation of funds or securities, or substantially equivalent activity in a domestic, military, or foreign court.
3 Question 14A(1) of Form U-4 requires members and associated persons to report any felony.
4 Question 14B(1) of Form U-4 limits the scope of reportable misdemeanor criminal events to misdemeanors involving investments or an investment-related business, fraud, false statements or omissions, wrongful taking of property, bribery, forgery, counterfeiting or extortion, or a conspiracy to commit any of these offenses.
ATTACHMENT A
Text of Rule
New language is underlined; deletions are in brackets.
3000. RESPONSIBILITIES RELATING TO ASSOCIATED PERSONS, EMPLOYEES, AND OTHERS' EMPLOYEES
Rule 3070. Reporting Requirements
