Managers of the National Association Securities Dealers say members should ignore attacks on its efforts to merge its regulatory operations with those of the New York Stock Exchange.
The NASD, Washington, says the consolidation will save it time and money, streamline compliance for large member firms that also belong to the NYSE, and enable it to pay each member firm $35,000.
“We are aware that organizations other than NASD have been making misstatements regarding the regulatory consolidation plan and member vote,” the NASD says in a statement posted on its Web home page. “NASD wants to ensure that all members have access to the facts about the consolidation plan:”
The NASD is paying only $35,000 to each member firm because that is the maximum amount the IRS will permit NASD to make to members and still retain tax-exempt status, the group says.