SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
SECURITIES EXCHANGE ACT OF 1934
Rel. No. 40690 / November 19, 1998
Admin. Proc. File No. 3-9510
__________________________________________________
:
In the Matter of the Application of :
:
RUSSELL A. SIMPSON :
49 Elizabeth Road :
Belmont, MA 02178-3819 :
:
For Review of Action Taken by the :
:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. :
__________________________________________________:
OPINION OF THE COMMISSION
REGISTERED SECURITIES ASSOCIATION -- REVIEW OF
ASSOCIATION ACTION
Jurisdiction to Review Action of Association
Customer's disciplinary complaint against member firm of
registered securities association and associated person,
contending that firm and associated person had violated
association rules, was dismissed by association after
conclusion of proceedings in which no violation was found.
Held, the matter is not reviewable by the Commission because
the dismissal of such a complaint is not among the actions
enumerated in Section 19(d) of the Securities Exchange Act
of 1934, 15 U.S.C. 78s(d), and application for review is
dismissed.
APPEARANCES:
Russell A. Simpson, pro se.
Alden S. Adkins, Norman Sue, Jr., and Susan L. Beesley, for
NASD Regulation, Inc.
Peter W. Schneider and Kevin E. Broyles, of Rogers & Hardin,
for Pierre M. Koutani and Bear, Stearns & Co. Inc.
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
Jurisdiction to Review Action of Association
the matter is not reviewable by the Commission because
the dismissal of such a complaint is not among the actions
enumerated in Section 19of the Securities Exchange Act
Russell A. Simpson, a former customer of Bear, Stearns & Co.
Inc., a member firm of the National Association of Securities Dealers, Inc. ("NASD"), seeks
The NASD dismissed a complaint filed by Simpson against Bear Stearns and Pierre Koutani,
Simpson contends both that Bear Stearns and Koutani violated NASD rules, and that the NASD
At the time of the events at issue, Article IV, Section 2 of the NASD Rules of Fair Practice
On April 10, 1994, Simpson wrote to the NASD's District Business Committee for District
The District Committee therefore did not treat the letter as a formal complaint.
Simpson expressed dissatisfaction with this outcome, and an examination subcommittee of the
Following a hearing, the National Committee instructed the District Committee to clarify its
Section 19of the Exchange Act, 15 U.S.C. 78s, requires, among other things, that the NASD
Although we have not previously considered whether we can review actions in which a formal
This is not an action in which the NASD imposed a "final disciplinary sanction."
We have previously defined a disciplinary action as an action that responds to an alleged
Under this definition, the proceeding initiated by Simpson's complaint was unquestionably
Rule 19d-1requires that dismissals of disciplinary actions be reported to us so that we may
NASD processes to initiate formal disciplinary actions.
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