Securities firms must certify compliance with securities laws, says NASD

All US securities firms will be required to designate a chief compliance officer (CCO) who will, with the chief executive officer (CEO), certify annually that the firm is working toward compliance with various securities laws, according to the National Association of Securities Dealers (NASD).

On December 2, the NASD filed a proposed rule amendment with the Securities and Exchange Commission (SEC) that would require the CEO and the CCO of each securities firm to jointly certify annually that the firm has processes in place to establish and maintain policies that will ensure compliance with applicable NASD rules, Municipal Securities Rulemaking Board rules and the federal securities laws.

Once approved by the SEC, a firm would be required to designate a chief compliance officer if

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