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November 28, 2006 at 12:32 PM
The National Association of Securities Dealers and NYSE Group Inc. want to combine oversight of securities firms.
The proposed regulatory consolidation could simplify compliance for large insurers with securities affiliates that belong to the New York Stock Exchange.
Officials at the NASD, Washington, and NYSE, New York, say the proposed deal could create a new “self-regulatory organization,” or SRO, that would be the private-sector regulator for all securities brokers and dealers doing business with the public in the United States.
The NASD now regulates about 5,100 member firms, and about 200 of those also are regulated by NYSE, officials say.
NYSE would continue to regulate the markets it runs and oversee the companies listed on the New York Stock Exchange, officials say.
The deal should save enough money that the NASD will be able to pay each member firm about $35,000 once the deal is created, officials say.
The deal also should give the NASD the ability to reduce some member fees for 5 years, officials say.
The NASD and NYSE have not yet named the proposed SRO, but they say it would have main offices in Washington and New York, along with 18 district offices and dispute resolution offices in other cities.
