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03-12 |
| Information Memo 03-12 is available for viewing or printing with Adobe Acrobat |
| Number 03-012 | 03/25/2003 |
| ATTENTION: | CHIEF EXECUTIVE OFFICER, MANAGING PARTNER, CHIEF COMPLIANCE OFFICER |
| TO: | ALL MEMBERS AND MEMBER ORGANIZATIONS |
| SUBJECT: | APRIL 1ST REPORTING REQUIREMENT - RULES 351 & 472 |
| This is a follow-up to Information Memo No. 02-24, dated May 20, 2002, in which the New York Stock Exchange, Inc. ("NYSE" or the "Exchange") announced that the Securities and Exchange Commission ("SEC" or the "Commission") had approved amendments to Exchange Rule 472 ("Communications with the Public") and Rule 351 ("Reporting Requirements").1 The amendments to Rules 472 and 351 were designed to address potential conflicts of interest by research analysts and broker-dealers and to require disclosure of such conflicts in research reports and public appearances.
Rule 351(f) (see Exhibit A) requires members and member organizations that prepare, issue or distribute communications2 to the public3 (including but not limited to research reports, media presentations and interviews) to submit to the Exchange, annually, a letter of attestation signed by a senior officer or partner,4 that the member or member organization has established and implemented written procedures reasonably designed to comply with the provisions of Rule 472. This attestation is required to be submitted to the Exchange by April 1 of each year in a manner prescribed by the Exchange. For 2003, members and member organizations will be required to maintain a copy of the letter of attestation dated on or before April 1, 2003, as part of their books and records and make the letter available to the Exchange upon request. In addition, all members and member organizations are required to file a notice (see attached questionnaire) with the Exchange, via the Exchange's Electronic Filing Platform ("EFP")5 that the letter signed by a senior officer or partner has been prepared and is being maintained as part of a firm's books and records. However, if a member or member organization does not prepare, issue or distribute communications to the public, it should indicate such on the questionnaire and return it to the Exchange (See question 1 of attached questionnaire). The EFP notification must be filed between March 26, 2003 and April 11, 2003 by each firm's Survey Central contact previously identified to the Exchange. Failure to comply with Rule 351(f) could result in a member or member organization receiving a summary fine pursuant to Rule 476A. Any questions relating to this memorandum should be addressed to your Finance Coordinator. For technical assistance regarding EFP, please contact the SIAC Service Center at 212-383-2062.
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1 See Securities Exchange Act Release No. 45908 (May 10, 2002).
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