FINRA Manual: Contents
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95-65 NASD Files NASD Manual Revisions With The SEC For Review And Approval
The NASD will soon file its proposed revision of the NASD Manual with the Securities and Exchange Commission (SEC) for approval, which is expected later this year. Following SEC approval, the NASD will direct the Commerce Clearing House and vendors providing electronic versions of the NASD Manual to convert the NASD Manual to the new version and to provide new-to-old and old-to-new conversion charts. This should be accomplished by April 1996.
Many users of the NASD Manual have commented that it is difficult for the casual reader to use, citing in particular its use of such categories as Articles, Sections, Schedules, Codes, Guidelines, Interpretations, Resolutions, and others; the difficulty in finding all rules on a particular subject; and familiar phrases not found in the Topical Index.
In response to such comments, the NASD Legal Advisory Board produced a topical Guide to the Manual that has been printed in the NASD Manual (at page 21) for several years. NASD senior management subsequently decided to rearrange the actual text of the NASD Manual.
The NASD Manual revision project has focused on reorganizing the text of the NASD Manual, and creating an expanded Key Word Index. The Board approved the necessary By-Law amendments at its meeting in March to accomplish the final stages of this project and the finished product will be filed with the SEC for approval this month.
NASD Manual Reorganization
The new NASD Manual will be divided into four major sections: Administrative, Corporate Organization, Rules of the Association, and Regulation T and SEC Rules. A common numbering scheme will extend through the Rules, while allowing space for additional Rules to be added without the use of decimal or letter extensions. Highlights of the revised NASD Manual include:
- The Rules of the Association are divided into four sections: Membership and Registration Rules, Conduct Rules, Marketplace Rules, and Procedural Rules. The Guide to the NASD Manual is attached for your information.
- The term Rules of Fair Practice will be changed simply to Rules, and will include the material currently contained in the Rules of Fair Practice as well as other provisions that have the effect of rules, such as the membership and qualification rules of Schedule C, the Nasdaq® rules of Schedule D, and all other Schedules except Schedule A (fees) and B (District boundaries), which will remain with the By-Laws.
- There is consistency in the numbering and lettering of paragraphs and subparagraphs within the Rules. Interpretations to the Rules are now called Interpretive Material, and numbered with an "IM" followed by the number of the Rule or Rules they interpret.
- The Code of Procedure, Code of Arbitration Procedure, and Uniform Practice Code will keep their current names, and will be in the overall Rules-numbering convention.
- Duplicate definitions were deleted.
- References to the SEC, the Securities Exchange Act of 1934, and the NASD were conformed to ensure that they are consistent throughout the NASD Manual.
Attached to this Notice is a Guide to the NASD Manual with provisions listed in substantially the order that they will appear in the revised NASD Manual. Any developments in the status of this project will be reported in regular editions of Notices to Members.
Please direct your questions or concerns about these proposed changes to T. Grant Callery, Vice President and General Counsel, Office of General Counsel, at (202) 728-8285 or Joan C. Conley, Corporate Secretary, at (202) 728-8381.
Guide To The NASD Manual
Guide To The Manual History And Organization Of The NASD Officials Telephone Inquiries List Of Selected Notices To Members Publications Order Form Clearing Corporation And Depository References Members Changes To List Of Members; Disciplinary Actions
Certificate Of Incorporation By-Laws Schedule A—Assessments And Fees Schedule B—Districts: Number And Territorial Boundaries
Rules Of The Association
Membership And Registration Rules
(Schedule D, Part VII; Schedule E; Government Securities Rules; Rules of Fair Practice, Article III)
Regulation T And SEC Rules
Key Word Index