December 13, 2010
RE: [FINRA Release No. 34-63316]
RE: 9522 (a) (3)-- period of time to file should be realistic given access to counsel may be limited to provide FINRA with any appropriate facts which may differ from FINRA records, or error correction, etc..
This period should be 20 business days for the BD or associated person to file, rather than 10 days. Access to counsel should be a prevailing right protected by the rule as it is to be written, and 10 total days is inadequate, since virtually all such filings will inevitably require legal review and compliance dept. review by the BD or associated person submitting the filing. 10 days is predominantly inadequate to prepare and file such a document.
RE: amendments to 1100,1113, 9520, and 9522--
The new rule should be expanded to include prohibition of participation by a disqualified person or entity in the financing, thru equity or debt, of any member firm, in any amount; and to also prohibit any person associated with a member firm from personally receiving funds, or borrowing funds personally, from any disqualified person or entity, which are then fully or partially re-invested, in equity or debt, into a member firm. The associated person or principal of a member firm that attempts such a deceptive transaction should be subject to hearing and fined and suspended if proven to have engaged in, or attempted, such a deceptive practice. Such financing, if allowed, could create certain control problems to occur within a member firm, or could circumvent AML rules, or could impede the FINRA regulatory process of oversight relative to the origin of funds. As such, the new rules should include provisions prohibiting practices which could result undesirable financing sources for FINRA member firms.
Respectfully Submitted by:
The Board of Directors of ASG Securities, Inc.
Michael Scillia, Chairman, for the Firm
ASG SECURITIES, INC., Member FINRA, SIPC, NIBA, FSX, REISA
2605 E. East Atlantic Blvd, SUITE 201, Pompano Beach, FL. 33062