NASD: Principles or Rules?

NASD CEO and Chairman Mary Schapiro told attendees at the Securities Industry and Financial Markets Association conference in Phoenix last month that in order to maintain their effectiveness, regulators such as NASD, which oversees 5,000 financial services companies, must “evolve at the same pace as today’s capital markets.”

What this means, she said, is that regulators must “be more sophisticated in understanding and accommodating different business models without compromising investor protection. Part of that means losing the blinders of ‘one size fits all’ rule-making.”

While the NASD regulatory system has long been a combination of principles and rules, she said, NASD can—like the United Kingdom’s Financial Services Authority—move toward more principles-based guidelines, although this could mean companies might be operating with less “certainty and clarity.”

Schapiro pointed to business entertainment as an area where a principles-based approach has caused NASD members some problems. “While some in the industry welcomed a principles-based approach, others were decidedly uncomfortable,” said Schapiro. “Legal and compliance staff, in particular, at many firms felt that such an approach left too much room for interpretation and ultimately, abuse, and the uncertainty of enforcement action.”

NASD recently completed a two-year investigation into the gift and entertainment practices of about 40 member companies and, along with the New York Stock Exchange, has proposed new guidelines that would force companies to come up with specific policies and procedures—a change from the vaguely worded entertainment guidelines found in the current rules.

For more on Schapiro’s speech click here.


Commenting terms of use blog comments powered by Disqus

         Subscribe in NewsGator Online   Subscribe in Bloglines

Want to use this article? Click here for options!
© 2008 Penton Media Inc.

Meetings Collaborative

Rate your experience with meeting venues and suppliers.

Facility / Hotel

 
Powered by: Meetings Collaborative

The Meeting Planning Blog

Face2Face Latest Posts

Webinars

What Meeting Planners Need to Know to Manage E-Meetings

Virtual meetings save time and money, get a thumbs-up from the “green” crowd, and offer new ways for companies and organizations to communicate, market, and sell. It’s time for meeting managers to start booking and managing them.
View it Now | View Archived Webinars

Apex Webinars

Meet Powershop: The Next Generation of APEX Tools

Wednesday, Sept. 17, 2008 2:00 PM ET

Curious about the breakthrough application that allows meeting planners and suppliers to send event specs back and forth in a standardized format? Join the leaders of APEX, an initiative of the Convention Industry Council, in a must-attend webinar introducing Powershop.


View Apex Webinar| View APEX Archives

CVB Supplement 2008

The Changing Face of CVBs

Featuring:
*Changing Face of CVB's
*CVB's Go Green

·Go to Digital Edition

Back to Top

Explore Our Newsletters

Meeting Planner Survival Guide

NEW & IMPROVED! Whether you're a novice planner or a veteran, this compilation of must-read articles is your meeting planning resource.

Suppliers/
Facilities/CVBs

MeetingsNet makes it easy to find the CVBs, tourist boards, and facilities you need for your next meeting.

Deals &
Discounts

Special group hotel offers brought to you by MeetingsNet.

Find A Job

Targeted to all aspects of the hospitality and special events industry.

Education
Central

Upcoming Events, Live and Online

Inside Current Issue

July Cover

July 2008

May Cover

May 2008

March Cover

March 2008

Jan Cover

January 2008

Nov Cover

November 2007

Browse Back Issues