NASD to Give Public Bigger Oversight Role; Investor Complaint Panel's Makeup to Change
An article in yesterday's Business section incorrectly described the planned composition of the boards overseeing two divisions of the National Association of Securities Dealers. The boards of the Nasdaq Stock Market and NASD Regulation Inc. each will have equal numbers of public and securities industry representatives. (Published 11/2/95)</br></br>Representatives of the public will be added to the powerful panel that reviews investor complaints against stockbrokers, National Association of Securities Dealers executives said yesterday.</br></br>The change in the makeup of NASD's influential National Business Conduct Committee, which also sets disciplinary policy, is one of several steps to expand public oversight of NASD and the Nasdaq Stock Market recommended recently in a extensive review of NASD by an independent panel headed by former U.S. senator Warren Rudman.</br></br>The first of the restructuring proposals its staff has drafted in response to the Rudman report will be presented to NASD's board of directors on Nov. 17, NASD President Joseph Hardiman and Executive Vice President Richard Ketcham said yesterday at a meeting with Washington Post reporters and editors.</br></br>The moves come in the face of public criticism and two government investigations over its dual role as the operator of the Nasdaq market and the government-designated regulator of the market and all registered stock brokers and securities professionals.