The NASD and New York Stock Exchange intend to give as much as a year to phase in new business expense tracking programs, said spokesmen. The regulators will require firms to have their written policies in place within three months of the rules’ effective date, they said. Both rules are pending approval by the Securities and Exchange Commission.
“We are suggesting to give firms one year to be in compliance with record keeping requirements because we realize firms may have to build new systems,” said an NASD spokesman. “We are proposing that firms be require to have policies in place within three months of SEC effective date.” Earlier this year compliance officers said developing the tracking systems was both time-consuming and expensive.
A compliance director at a large broker/dealer in Connecticut said the industry has been persistent in requesting time to phase the new programs. But another compliance director at a large B/D in New York questioned if one year would be enough time. “Regulators are looking to give as much as a year lead time because they are realizing how complex these systems are going to be,” he said. “I hope that one year is going to be enough time. It is going to have to be.”