From: Dan Jamieson [broker_advocate@hotmail.com]
Sent: Monday, May 06, 2002 11:15 PM
To: chairmanoffice@sec.gov; rule-comments@sec.gov
Subject: Analyst disclosure rule--DELAY. Comment: SR-NASD-2002-21;
SR-NYSE-2002-09

chairmanoffice@sec.gov,

rule-comments@sec.gov

May 6, 2002

Comment to File Nos.:  SR-NASD-2002-21; SR-NYSE-2002-09

The Commission should delay action on File Nos.:  SR-NASD-2002-21; 
SR-NYSE-2002-09 (the “rules).

In light of events known now, the timing and content of the rules raises 
serious concerns about the integrity of this SRO rulemaking process, as well 
as SEC oversight of that process. Indeed, with yet more revelations reported 
to be coming from the New York attorney general, what exactly is the 
Commission’s hurry?

A prior analyst-disclosure rule was proposed sua sponte by the NASD (NASD 
NTM 01-45, Aug. 15, 2001), a proposed amendment to Rule 2210 in response to 
great public concerns about brokerage firm research. Public input was sought 
only after the rule was drafted and proposed.

Then came Enron. In response to the collapse of Enron Corp., the SROs 
produced sua sponte the rules now under consideration by the Commission. 
(NTM 01-45 was dropped.) No no public input whatsoever was taken by the 
SROs.

The rules were published in the Federal Register March 14, 2002, with the 
comment period expiring on April 4, 2002. On April 2, the Commission decided 
to extend the comment period until April 18, 2002.

Meanwhile, on April 8, 2002, the New York Attorney General’s office released 
troubling evidence about the very honesty of some research departments, 
thereby sparking new and intense public debate about research integrity and 
possible reforms.

Therefore, the proposed rules should be delayed, while further facts are 
uncovered and disclosed to the public. In the end, a cooperative effort by 
state and federal regulators--not the rules drafted just by industry 
associations--may well produce a result that will go far in restoring 
investor confidence. Alternatively, further facts may spur the efforts of 
private litigants and cause further embarrassment, thereby provoking 
profound private reform and possibly obviating the need for any new rules. 
Ethical lapses, after all, may be unfixable by regulations.

Please delay action on the rules pending further investigation.

Sincerely,

Dan Jamieson
Public investor and financial journalist



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