NASD Announces Nomination Procedures for Regional Industry Member Vacancies on the National Adjudicatory Council

GUIDANCE

NAC Nominations

Nomination Deadline: May 17, 2004

Executive Summary

The purpose of this Special Notice to Members is to advise members of the nomination procedures to fill two upcoming vacancies on the National Adjudicatory Council (NAC). The three-year terms of the NAC regional Industry members from the Midwest and South Regions expire in January 2005.

Exhibit I contains information regarding the NAC regional Industry members whose terms expire in January 2005. 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 NASD District Director, or NASD Corporate Secretary (listed in Exhibit I) by May 17, 2004.

The completed Candidate Profile Sheets will be provided to all Regional Nominating Committee members for review. On or about June 1, 2004, the Regional Nominating Committee will provide NASD members with written notice of the NAC candidates that 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 may be directed to the District Directors listed in Exhibit I or to Barbara Z. Sweeney, Senior Vice President and Corporate Secretary, NASD, at (202) 728-8062 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 current NAC members. Two Industry members are appointed by the NASD Regulation Board of Directors 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, Washington, and the former U.S. Trust Territories.

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

Midwest Region: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Illinois, Indiana, Kentucky, Michigan, and Wisconsin.

North Region: Delaware, Maryland, Pennsylvania, Virginia, West Virginia, the District of Columbia, New Jersey, Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, and New York (except for the counties of Nassau and Suffolk, and the five boroughs of New York City).

New York: The counties of Nassau and Suffolk, and the five boroughs of New York City.

We are seeking nominations for the Midwest and South 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 exercise of exemptive authority; and
• other proceedings or actions authorized by NASD rules.

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.

Exhibit I

NAC Industry Member with a Term Expiring in January 2005

Midwest Region (Districts 4 and 8)

NAC Incumbent: Douglas L. Kelly

If you are interested in nominating yourself or a colleague to represent the Midwest Region for a three-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 May 17, 2004.

William K. Curtis
Regional Nominating Committee Chair

M & I Brokerage Services, Inc.
770 North Water Street
Milwaukee, WI 53202

(414) 765-7674

Thomas D. Clough
District 4 Director

NASD
12 Wyandotte Plaza
120 West 12th Street, Suite 900
Kansas City, MO 64105

(816) 421-5700

Carlotta A. Romano
District 8 Director

NASD
55 West Monroe Street
Suite 2700
Chicago, IL 60603-5001

(312) 899-4400

Barbara Z. Sweeney
Senior Vice President and
Corporate Secretary

NASD
1735 K Street, NW
Washington, DC 20006

(202) 728-8062

NAC Industry Member with a Term Expiring in January 2005

South Region (Districts 5, 6, and 7)

NAC Incumbent: Barbara L. Weaver

If you are interested in nominating yourself or a colleague to represent the South Region for a three-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 May 17, 2004.

Dennis S. Kaminski
Regional Nominating Committee Chair

Mutual Service Corporation
One Clearlake Centre, Suite 1800
250 Australian Avenue South
West Palm Beach, FL 33401

(561) 835-4100

Warren A. Butler, Jr.
Regional Director, South Region

NASD
1100 Poydras Street
Suite 850, Energy Centre
New Orleans, LA 70163

(504) 522-6527

Virginia F.M. Jans
District 6 Director

NASD
12801 North Central Expressway
Suite 1050
Dallas, TX 75243

(972) 701-8554

David Paulukaitis
District 7 Acting Director

NASD
One Securities Centre, Suite 500
3490 Piedmont Road, NE
Atlanta, GA 30305

(404) 239-6100

Barbara Z. Sweeney
Senior Vice President and
Corporate Secretary

NASD
1735 K Street, NW
Washington, DC 20006

(202) 728-8062

Exhibit II

2004 National Adjudicatory Council

Exhibit III

National Adjudicatory Council Nomination Procedures

Additional information pertaining to the National Adjudicatory Council 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.nasd.com.

Exhibit IV

Candidate Profile Sheet

Current Employment

Prior Employment (List the most recent first. Feel free to include extra pages if necessary.)

General Areas of Expertise (please check all that apply)

Product Expertise (please check all that apply)

Memberships/Positions Held in Trade or Business Organizations

Past NASD Experience and Dates of Service (please check all that apply)

Educational Background