Academic journal article ABA Banking Journal

Thumbs Down on Broker-Dealer Proposal

Academic journal article ABA Banking Journal

Thumbs Down on Broker-Dealer Proposal

Article excerpt

In spite of improvements it acknowledged had been made from an earlier version of the document, ABA and its securities affiliate, the ABA Securities Association, continued to remain strongly opposed to a National Association of Securities Dealers proposal regarding broker-dealers doing business on bank premises.

"Our opposition is grounded on the fact that the NASD, by this proposal, continues to single out banks and broker-dealers operating on bank premises for special treatment," the associations stated in a comment letter to the Securities and Exchange Commission, under whose authority NASD operates. "Nowhere else in the NASD Rules of Fair Practice does the NASD treat member firms operating in any other environment for such specialized treatment. As such, the rules, in toto, are discriminatory."

Elsewhere, the letter stated "The proposal is discriminatory and exacerbates the existing uneven playing field between banks and other nonbank affiliated financial services providers,"

What's good for bank-connected dealers should be good for all dealers, the associations insisted. …

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