The North American Securities Administrators Association has criticized the NASD for attempting to change a planned rule that would disclose the entire disciplinary history of a broker. The NASD reportedly had proposed disclosing full disciplinary history for registered representatives who had three such actions against them in 10 years. Under the proposed changes, disclosure would only go as far back the effective date of the rule. Filed with the Securities and Exchange Commission, the NASAA letter suggested that the NASD, allegedly bowing to industry pressure, was trying to change the current system, whereby complaints 2 years old or older are not disclosed. The two-year period begins when the firm received the complaint filed with the BrokerCheck database; the NASD is now proposing to shorten that time by tolling the two years from the time the complaint if filed.
