NASD to Review Regulation Rules

The National Assn. of Securities Dealers’ regulatory arm will undertake a “back-to-basics” review of its rules with an eye toward updating them, NASD Regulation President Mary L. Schapiro said Monday.

The aim is to make sure that NASD Regulation’s rules impose “the least practical burden for the greatest regulatory benefit,” Schapiro said, calling the effort “a modernization process.”

Schapiro said she has “no preconceived notions” about which rules deserve scrutiny and plans to solicit suggestions from her staff and the public. Perhaps dozens of rules could come under review, she said.

For example, many rules don’t take into account the existence of the Internet or e-mail, which have changed communications between brokers and their clients, she said. Rules that haven’t triggered enforcement actions for a long time also might come under scrutiny.