NASD Announces Nomination Procedures For Regional Industry Member Vacancies On The National Adjudicatory Council

INFORMATIONAL

NAC Nominations

Nomination Deadline: September 15, 2000

Executive Summary

The purpose of this Special Notice to Members is to advise members of the nomination procedures to fill three upcoming vacancies on the National Adjudicatory Council (NAC). The two-year terms of NAC regional Industry members from the North Region, South Region, and Central Region expire in January 2001. The current regional Industry members from these three regions are eligible to serve another two-year term.

Exhibit I contains a list of NAC regional Industry members whose terms expire in January 2001. Exhibit II contains a list of all NAC members. The procedures to fill the NAC regional Industry vacancies are outlined in Exhibit III. Also, a Candidate Profile Sheet is included in Exhibit IV.

Nomination Process

Members are encouraged to submit nominations for the upcoming NAC vacancies. To nominate a candidate, members should submit a cover letter and the Candidate Profile Sheet (Exhibit IV) to the appropriate Regional Nominating Committee Chair, the NASDR^SM District Director, or National Association of Securities Dealers, Inc. (NASD^®) Corporate Secretary (listed in Exhibit I) by September 15, 2000.

The Candidate Profile Sheets will be provided to all Regional Nominating Committee members for review. On or about October 6, 2000, the Regional Nominating Committees will provide NASD members with written notice of NAC candidates the Committee proposes for nomination to the National Nominating Committee. Pursuant to Article V, Section 5.3(a) of the NASD Regulation By-Laws, the NASD National Nominating Committee shall nominate all candidates for the NAC for subsequent appointment by the Board.

Questions/Further Information

Questions concerning this Special Notice to Members may be directed to the District Directors listed in Exhibit I or to Joan C. Conley, Senior Vice President and Corporate Secretary, NASD, at (202) 728-8381 or via e-mail at: [email protected].

National Adjudicatory Council Membership And Function

Membership

The NAC consists of 14 members—seven Industry members and seven Non-Industry members. Exhibit II contains a list of all NAC members. Two Industry members are appointed by the NASD National Nominating Committee as at-large members. Five Industry members each represent one of the following geographic regions:

West Region: Hawaii, California, Nevada, Arizona, Colorado, New Mexico, Utah, Wyoming, Alaska, Idaho, Montana, Oregon, and Washington.

South Region: Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Oklahoma, Tennessee, Texas, Florida, Georgia, North Carolina, South Carolina, Puerto Rico, Virginia, Canal Zone, and the Virgin Islands.

Central Region: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Illinois, Indiana, Michigan, Western New York state, and Wisconsin.

North Region: Delaware, Maryland, Pennsylvania, West Virginia, District of Columbia, New Jersey, Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, and New York (except for New York City and Western New York state).

New York: New York City.

We are seeking nominations for the North, South, and Central Regions.

Function

According to the NASD By-Laws, the NAC is authorized to act for the NASD Board of Governors in matters concerning:

• appeals or reviews of disciplinary proceedings, statutory disqualification proceedings, or membership proceedings;



• the review of offers of settlement; letters of acceptance, waiver, and consent; and minor rule violation plan letters;



• the exercise of exemptive authority; and



• other proceedings or actions authorized by the Rules of the Association.

The NAC also considers and makes recommendations to the Board on enforcement policy and rule changes relating to the business and sales practices of NASD members and associated persons.

South Region (Districts 5, 6, and 7)

NAC Incumbent: Raymond E. Wooldridge, Southwest Securities, Inc.

If you are interested in nominating yourself or a colleague to represent the South Region for a two-year term on the NAC, please submit a cover letter and a completed Candidate Profile Sheet (Exhibit IV) to any of the following individuals by September 15, 2000.

Central Region (Districts 4 and 8)

NAC Incumbent: Timothy P. Henahan, Baker & Co., Inc.

If you are interested in nominating yourself or a colleague to represent the Central Region for a two-year term on the NAC, please submit a cover letter and a completed Candidate Profile Sheet (Exhibit IV) to any of the following individuals by September 15, 2000.

North Region (Districts 9 and 11)

NAC Incumbent: Richard J. DeAgazio, Boston Capital Services, Inc.

If you are interested in nominating yourself or a colleague to represent the North Region for a two-year term on the NAC, please submit a cover letter and a completed Candidate Profile Sheet (Exhibit IV) to any of the following individuals by September 15, 2000.

Mary E.T. Beach
Attorney

Robert J. Birnbaum
Attorney

Herbert H. Brown
Attorney

Joan Caridi
CS First Boston

Nicholas C. Cochran
NAC Chairperson
American Investors Company

Richard J. DeAgazio
Boston Capital Services, Inc.

David A. DeMuro
Lehman Brothers, Inc.

Timothy P. Henahan
Baker & Co., Inc.

Alice T. Kane
American General

Roberta S. Karmel
Kelley Drye & Warren LLP

Anthony B. Petrelli
Neidiger, Tucker, Bruner, Inc.

Mark A. Sargent
Villanova University School of Law

Elliott J. Weiss
Charles E. Ares Professor of Law
The University of Arizona

Raymond E. Wooldridge
Southwest Securities, Inc.

Additional information pertaining to the District Election Procedures can be found in Article VI of the By-Laws of NASD Regulation. The By-Laws can be found in the online NASD Manual at www.nasdr.com.

EXHIBIT IV

Date: _____/______/______