SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
SECURITIES EXCHANGE ACT OF 1934
Rel. No. 41330 \ April 26, 1999
Admin. Proc. File No. 3-9623
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In the Matter of the Application of
SIERRA NEVADA SECURITIES, INC.
c/o James M. Hensley
5301 Longley Lane
Building D, Suite 143
Reno, Nevada 89511
For Review of Action Taken by the
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
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OPINION OF THE COMMISSION
REGISTERED SECURITIES ASSOCIATION -- PROHIBITION OR LIMITATION OF
ACCESS TO SERVICES
Request to Amend Restrictive Agreement
Registered securities association denied member firm's application to
modify restrictive agreement to allow firm to make a market in no more
than 50 securities. Held, review proceeding is dismissed.
APPEARANCES
James M. Hensley, for Sierra Nevada Securities, Inc.
Alden S. Adkins and Norman Sue, Jr., for NASD Regulation, Inc.
Appeal filed June 8, 1998
Last brief filed September 15, 1998
I.
Sierra Nevada Securities, Inc. ("Sierra"), a member of the National
Association of Securities Dealers, Inc. ("NASD"), has applied for
review of a decision by the NASD, dated May 11, 1998. The NASD denied
Sierra's request to modify the terms of its restrictive agreement to
permit it to make markets in the securities of no more than 50
issuers. We base our findings on an independent review of the record.
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
SIERRA NEVADA SECURITIES, INC. c/o James M. Hensley
Registered securities association denied member firm's application to modify restrictive
Held, review proceeding is dismissed.
James M. Hensley, for Sierra Nevada Securities, Inc. Alden S. Adkins and Norman Sue, Jr., for
Sierra Nevada Securities, Inc., a member of the National Association of Securities Dealers,
The Restrictive Agreement required that Sierra operate on an agency basis, not hold customer
That business plan stated that the firm intended to petition the NASD to expand its business
On October 27, 1997, Sierra requested, pursuant to NASD Membership and Registration Rule
Sierra stated in its application that its president, James Hensley, and his son Jeffrey
She also found that James Hensley, the person designated to perform the supervisory function,
We review the NASD's denial of Sierra's application to modify its Restrictive Agreement under
In reviewing any such prohibition or limitation of access to services by the NASD we consider
The Exchange Act recognizes the importance of establishing and enforcing standards of
A market maker that is unable to meet its financial or regulatory obligations poses a grave
Sierra also argues that the Hensleys are qualified by virtue of their being licensed by the
Sierra also complains that the NASD District Director wrongly denied its application based on
Sierra complains that the NASD did not produce a draft decision letter prepared by an NASD
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