Insights
Client Alert
Proposal to Require Broker-Dealer CEOs/Compliance Chiefs to Provide Personal Certification of Compliance and Supervisory Policies and Procedures
June 01, 2003
Investment Management Practice Group
The principal regulatory authority overseeing the brokerage industry – the NASD – has proposed that each member firm’s chief compliance officer and chief executive officer annually certify that the firm has compliance and supervisory policies and procedures reasonably designed to comport with applicable securities laws and rules. The proposal, contained in NASD Special Notice to Members 03-29, is intended to enhance investor protection by encouraging the firm’s senior management to focus increased attention on supervisory systems and by creating a more prominent role for compliance officers in the securities industry.