[Federal Register Volume 69, Number 244 (Tuesday, December 21, 2004)]
[Notices]
[Page 76510]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-27833]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50848; File No. SR-NASD-2004-133]


Self-Regulatory Organizations; National Association of Securities 
Dealers, Inc.; Order Granting Approval of Proposed Rule Change To Amend 
NASD Rule 9522 (``Initiation of Eligibility Proceeding; Member 
Regulation Consideration'') To Give Member Regulation the Authority To 
Approve the MC-400 Applications of Statutorily Disqualified Persons Who 
Will Be Engaged Solely in Clerical and/or Ministerial Activities

December 14, 2004.
    On September 1, 2004, the National Association of Securities 
Dealers, Inc., (``NASD'') filed with the Securities and Exchange 
Commission (``Commission''), pursuant to section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to amend NASD Rule 9522 
(``Initiation of Eligibility Proceeding; Member Regulation 
Consideration'') to give Member Regulation the authority to approve the 
MC-400 applications of statutorily disqualified persons who will be 
engaged solely in clerical and/or ministerial activities. The proposed 
rule change was published for notice and comment in the Federal 
Register on November 10, 2004.\3\ The Commission received no comments 
on the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 50626 (November 3, 
2004), 69 FR 65238.
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    The Commission has reviewed carefully the proposed rule change and 
finds that the proposed rule change is consistent with the requirements 
of the Act and the rules and regulations thereunder applicable to a 
national securities association \4\ and, in particular, the 
requirements of section 15A(b)(6) of the Act,\5\ which requires, among 
other things, that NASD's rules be designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, and, in general, to protect investors and the 
public interest. The Commission also finds the proposed rule change is 
consistent with section 15A(b)(8) of the Act,\6\ which requires that 
NASD rules provide a fair procedure for the denial of membership to any 
person seeking membership therein.
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    \4\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78o-3(b)(6).
    \6\ 15 U.S.C. 78o-3(b)(8).
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    It is therefore ordered, pursuant to section 19(b)(2) of the Act 
\7\, that the proposed rule change (SR-NASD-2004-133) be, and it hereby 
is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-27833 Filed 12-20-04; 8:45 am]
BILLING CODE 8010-01-P