Magazine article American Banker

Securities Dealers Group May Create a Forum for Bank Brokerages

Magazine article American Banker

Securities Dealers Group May Create a Forum for Bank Brokerages

Article excerpt

Bank brokerages may soon have the forum they have sought from the National Association of Securities Dealers.

The NASD's board of directors, at a meeting next month, is expected to create a committee focusing on banks' investment sales programs, according to a top association official.

"I would be very surprised if it didn't happen," said R. Clark Hooper, NASD vice president in charge of advertising.

The group's decision comes after months of cajoling by banking trade groups and industry executives, who have maintained that such a committee is sorely needed, given the NASD's growing focus on banks' brokerage programs.

The association, which sets professional standards for the brokerage industry, has similar standing committees for other groups, such as brokerages affiliated with insurance companies. The proposed bank brokerage committee would advise the NASD's staff on issues of special concern to brokers operating in banks.

Ms. Hooper said the committee could be up and running by early February, giving its members time to consider the NASD's recently issued proposals to regulate mutual fund sales by bank brokerages.

The proposed rules, which would create a regulatory framework for bank investment sales, drew fire from bankers when they came to light last month. The NASD is soliciting comment on the proposals until Feb. 15. They could then be revised by the NASD and submitted to the Securities and Exchange Commission, which could approve them after seeking further public comment. …

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