NASD Revolt Takes Root
Written: December 28, 2005
One of the most important Wall Street stories of 2005 is one that the NASD appears to be sweeping under its carpet. The long-rumored grassroots revolution among the NASD's membership seems to be catching fire on a national basis. Within the last year, three NASD Districts have witnessed the successful campaigns of so-called dissident candidates who challenged the organization's official nominees (from the District Nominating Committees). The recent wave of protest votes saw the elections of Dan Roberts in San Francisco and Howard Spindel in New York City.
You say you weren't aware of those two upset elections? Funny, the NASD makes such a big deal of sending out Notices to Members and press releases heralding all sorts of supposed news events. Odd that they wouldn't undertake the same blunt disclosure with these dissident election results. You'd think they would at least let you know --- in plain English --- that the candidates contesting the offically nomninated slates won. Tell you what. You read the press release and show me where it's so plainly stated.
For starters, look at the months-old announcement of the list of District 7 nominees on Page 9 of
http://www.nasd.com/web/groups/rules_regs/documents/notice_to_members/nasdw_015073.pdf
Note that the three "official" nominees of the District 7 Nominating Committee were: Douglas Aldridge (H&R Block), Valerie Brown (ING), and Dennis Zank (Raymond James). If you do your homework, you will see that such official NASD candidates almost never lose a district election.
But I did say almost!
Next, take a look at the December 28th Special Notice to Members. You think the NASD fairly describes the historic and dramatic nature of this shocking upset election? You see any reference in the headline or body of the release indicating the dramatic upset nature of the election? Also, by issuing this notice between Christmas and New Year's, you don't think the regulator was trying to slip something past everyone during a dead news period... nah, they wouldn't do anything that slippery... no?
In a major surprise, three dissident candidates swept the 2005 NASD District 7 election: see Attachment A on Page 2 of target="_blank">http://www.nasd.com/web/groups/rules_regs/documents/notice_to_members/nasdw_015792.pdf
Now, how would you know the contested candidates beat the offically nominated slate? Frankly, I congratulate the NASD on a wonderful case of obfuscation. Sadly, one should not expect such politics from a regulator. Alas, we have learned to live with such disappointments over the years.
Note that the dissident slate was: John Busacca (North American Clearing), Marc Ellis (GunnAllen Financial) and Ronald Kovack (Kovack Securities).
You say you weren't aware of those two upset elections? Funny, the NASD makes such a big deal of sending out Notices to Members and press releases heralding all sorts of supposed news events. Odd that they wouldn't undertake the same blunt disclosure with these dissident election results. You'd think they would at least let you know --- in plain English --- that the candidates contesting the offically nomninated slates won. Tell you what. You read the press release and show me where it's so plainly stated.
For starters, look at the months-old announcement of the list of District 7 nominees on Page 9 of
http://www.nasd.com/web/groups/rules_regs/documents/notice_to_members/nasdw_015073.pdf
Note that the three "official" nominees of the District 7 Nominating Committee were: Douglas Aldridge (H&R Block), Valerie Brown (ING), and Dennis Zank (Raymond James). If you do your homework, you will see that such official NASD candidates almost never lose a district election.
But I did say almost!
Next, take a look at the December 28th Special Notice to Members. You think the NASD fairly describes the historic and dramatic nature of this shocking upset election? You see any reference in the headline or body of the release indicating the dramatic upset nature of the election? Also, by issuing this notice between Christmas and New Year's, you don't think the regulator was trying to slip something past everyone during a dead news period... nah, they wouldn't do anything that slippery... no?
In a major surprise, three dissident candidates swept the 2005 NASD District 7 election: see Attachment A on Page 2 of target="_blank">http://www.nasd.com/web/groups/rules_regs/documents/notice_to_members/nasdw_015792.pdf
Now, how would you know the contested candidates beat the offically nominated slate? Frankly, I congratulate the NASD on a wonderful case of obfuscation. Sadly, one should not expect such politics from a regulator. Alas, we have learned to live with such disappointments over the years.
Note that the dissident slate was: John Busacca (North American Clearing), Marc Ellis (GunnAllen Financial) and Ronald Kovack (Kovack Securities).
[^top^]