NASDR PUBLISHES GUIDANCE ON THE IN-FIRM DELIVERY OF THE REGULATORY ELEMENT OF CONTINUING EDUCATION

[13242] March 12, 2001 TO: CONTINUING EDUCATION AND TRAINING MEMBERS No. 3-01 HUMAN RESOURCES FORUM No. 3-01 OPERATIONS COMMITTEE No. 8-01 RE: NASDR PUBLISHES GUIDANCE ON THE IN-FIRM DELIVERY OF THE REGULATORY ELEMENT OF CONTINUING EDUCATION As we previously informed you, in December 2000, the Securities and Exchange Commission approved amendments proposed by NASD Regulation, Inc. to Rule 1120 to permit the in-firm delivery of the Regulatory Element of the Continuing Education requirements. As revised, Rule 1120 permits an NASD member firm to provide for in-firm delivery of the Regulatory Element provided that the firm complies with specified requirements including: designating a principal to be responsible for the in-firm delivery; complying with specified conditions relating to the delivery site, technology requirements, supervision, proctors, and administrator; and providing an attestation that the member has complied with the conditions set forth in the rule. NASDR recently published Notice to Members 01-14 (February 2001) that explains in detail how members of NASDR may implement in-firm delivery of the Regulatory Element. In addition to providing more detail concerning the requirements set forth in revised Rule 1120, the Notice includes the attestation form that members must sign and provides guidance concerning the site hardware and software specifications necessary to provide for such delivery. A copy of NASDR’s Notice is attached. Tamara K. Reed Associate Counsel Attachment Attachment (in .pdf format)