Jayne W. Barnard, William & Mary Cutler Professor of Law, has been appointed to the National Association of Securities Dealers (NASD) National Adjudication Council. The 14-member Council, which serves as the “court of appeals” in the brokerage industry’s private regulatory system, meets five times per year to review cases involving discipline and reinstatement of financial professionals. Barnard’s three-year term began Jan. 1, 2006.
Barnard has written for 15 years on professional suspension issues, including standards of proof in sanctioning, facts mitigating harsh sanctions, and when sanctioned defendants may establish their rehabilitation. Joining her on the current Council are seven members of the financial services industry and six non-industry representatives, including professors from the Harvard Business School, the Kellogg School of Management and the Wharton School of Business.
“The council is a very impressive group, and it plays an important role in the integrity of the capital markets,” Barnard said. “This is a wonderful opportunity for me to put my research to work and be of service in the industry.”
The NASD, empowered by the federal Securities and Exchange Commission to regulate the brokerage industry, strives to protect investors and “level the playing field” within the industry. When a customer files a complaint against individual brokers or their firms, the NASD may bring disciplinary proceedings punishable by suspensions or fines. Any appeal from NASD sanctions is heard by the National Adjudication Council, and beyond that, by the SEC and the federal courts.
The National Adjudication Council issued at least 19 disciplinary decisions in 2005, according to NASD’s Web site.
Barnard joined the William & Mary faculty in 1985, after practicing law at Jenner & Block in Chicago and serving as Deputy Corporation Counsel for the city of Chicago. Specializing in corporate finance, corporations, white collar crime and securities regulation, she currently teaches Business Associations and a Securities Regulation survey course at the Law School. Barnard also serves on the Board of Directors for the ACLU of Virginia, and is a member of the Commission on Virginia Courts in the 21st Century.
Although preparation for each of the National Adjudication Council’s meetings will include some hefty reading assignments, Barnard said she is fascinated by the entire experience – the people, the process and the issues involved. In the words of Judge Bork, she said, “it’s an intellectual feast.”
For more information on NASD and the Council, visit http://www.nasd.com.