The Securities and Exchange Commission has approved a proposed rule change advanced by the Financial Industry Regulatory Authority (FINRA) (f/k/a/ National Association of Securities Dealers, Inc. (NASD)) to adopt NASD Rule 3013 and IM-3013, and to delete the corresponding provisions found in Incorporated New York Stock Exchange (NYSE) Rule 342.30 and NYSE Rule Interpretations 311(b)(5)/04 through /05 and 342.30(d)/01 through (e)/01. FINRA will renumber NASD Rule 3013 (Annual Certification of Compliance and Supervisory Processes) and IM-3013 (Annual Compliance and Supervision Certification) as FINRA Rule 3130 in the Consolidated FINRA Rulebook.
Currently, NASD Rule 3013 and Incorporated NYSE Rule 342 require each member to designate one or more principals to serve as chief compliance officer (CCO) and require that a chief executive officer (CEO) annually certify that the member has a mechanism in place to establish, maintain, review, modify and test policies designed to achieve compliance with applicable NASD or NYSE rules and regulations. The certification requires, in part, that the CEO has conducted at least one meeting with the CCO within the previous 12 months discussing the mechanism and its effectiveness.
Though there are several differences between the NASD and NYSE rules, FINRA has determined which provisions to retain for the Consolidated FINRA Rulebook. For instance, NYSE Rule 342.30 requires that the member submit its annual certification to the NYSE whereas the corresponding NASD rule merely requires that the certification be maintained for inspection. FINRA has determined to retain the NASD requirement of keeping the certification on file for a potential future inspection.