SIFMA wants to ensure that firms are provided with complete and accurate information about the proposed consolidation of NASD and NYSE. As such, we have posted these materials to serve as a reference when you have questions. We will update the content on this site as new and relevant material is made available. Please note the links below as well as the NASD website provide the most accurate and up-to-date materials on consolidation developments.
If you are a firm who would like to connect with a SIFMA representative to discuss the terms of the merger, or, if you would like to be put in touch with a firm of your size who would be willing to speak with you about their position on the consolidation, please contact: Rob Gannon, rgannon@sifma.org.
UPDATES:
- NEW! SIFMA Praises Approval of SRO Consolidation - Jan 21
- SEC’s Nazareth Remarks on SRO Consolidation - Jan 11
- Wall Street Journal Op-Ed - January 6, 2007
- Mary Schapiro Webcast -
Chairman and CEO Mary Schapiro talks about regulatory consolidation - January 3, 2007
- Assertions and Facts -
Get the facts on the regulatory consolidation plan - January 3, 2007
- Frequently Asked Questions -
Read FAQ on the regulatory consolidation plan.
- NASD Information Regarding $35,000 Payment – December 19, 2006
- NASD Regulatory and Consolidation Home
- NASD FAQ
- Independent Firms Committee Strongly Endorses SRO Consolidation - pdf, December 21, 2006
- Regional Firms Committee UNANIMOUSLY Endorses NYSE/NASD Regulatory Consolidation - pdf December 20, 2006
- Small Firms Committee Endorses NYSE/NASD Regulatory Consolidation - pdf, December 12, 2006
- NYSE/NASD Regulatory Merger Endorsed By SIFMA -
November 28, 2006
ADDITIONAL MATERIALS AND RESOURCES (Also found under Related Links)
BACKGROUND
Prior history of the initiative:
SIA White Paper on SRO reform and related charts - January 5, 2000
(Updated October 14, 2003)
SIA has had discussions over an extended period with a variety of regulators, including the SEC's Office of Compliance Inspections and Examinations ("OCIE"), the New York Stock Exchange ("NYSE"), the National Association of Securities Dealers ("NASD"), and various state regulators, about possible steps to improve coordination in examination and regulatory programs. Possible improvements include better coordination among examination teams. SIA has also supported steps by the NASD and NYSE to eliminate inconsistencies in their rules, especially when both organizations seek to regulate the same activity. We have also had discussions with regulators about improving coordination among examination teams. Both the regulators and the industry have a common interest in ensuring that regulatory and compliance resources are expended efficiently. In this regard, the noted regulators continue their work to avoid regulatory overlap.
Currently, we understand that OCIE, the NYSE and NASD are planning to take the following key steps to reduce duplication among their examination programs:
- NASD and NYSE have identified common areas that they will allocate when conducting routine inspections so that only one regulator will be responsible for reviewing that area at a particular firm. These areas include: Anti-money Laundering, Research Analysts, Regulation SP, Business Continuity Planning, Regulation SHO, monitoring of registered representatives subject to Statutory Disqualification, Continuing Education, new Supervisory Controls rules, Internal Controls, and Electronic Communications. As both regulatory organizations are responsible for such rules, there may be times, such as with cause examinations or sweeps where both organizations are reviewing the referenced areas but with respect to different regulatory initiatives or scope.
- NASD, NYSE and OCIE are working to create a database of statistical branch office information that will be utilized to determine possible on-site branch visits, and to warehouse information concerning actual on-site visits made by either OCIE, NASD or NYSE. . This database is accessible by NASD, NYSE and OCIE, with the expectation that it will further reduce unnecessary duplication of, and improve the efficiency of, branch examinations. The senior staffs of OCIE, NYSE and NASD have suggested that they will make greater use of joint "first day" letters, so that when the examiners begin examinations at around the same time they will develop a common information request to the extent feasible, considering that the examination teams will be focused on distinct topics, rules, and regulations.
- The senior staffs are considering adopting a practice by which sweep examination requests will routinely include a query as to whether the recipient has received any other recent request for the same or substantially similar information, and an instruction to the recipient to immediately inform the regulator of such a request.
If firms have concerns with specific instances of examinations that seem duplicative or unduly burdensome, they should feel free to raise these concerns with the following senior staff members of the respective regulators: Richard Hannibal of OCIE (hannibalr@sec.gov), George Walz of the NASD (walzg@nasd.com) or Grace Vogel of the NYSE (gvogel@nyse.com).
If you have any questions about examination coordination issues that you would like to discuss with SIA staff, please contact Amal Aly (aaly@sifma.org).
