SEC rejects broker’s anti-NASD complaint
The Securities and Exchange Commission has thrown out complaints filed by Sky Capital LLC against NASD.
The Securities and Exchange Commission has thrown out complaints filed by Sky Capital LLC against NASD.
Sky Capital LLC, a London and New York-based full-service investment banking and brokerage firm, requested that the regulator review actions taken by NASD as part of an alleged “campaign of harassment” against the firm and of NASD’s failure to provide an internal procedure for member complaints of NASD’s staff misconduct, according to the SEC.
A NASD member since 2002, Sky alleged that NASD staff employed delay tactics in reviewing its membership application and was biased against the firm’s chief executive, Ross H. Mandell, based on his regulatory history and past substance abuse problems.
Sky Capital also alleged that NASD staff obstructed plans to acquire assets from The Thornwater Company LP, a New York-based broker-dealer and a member firm, by imposing restrictions on Thornwater.
However, Sky Capital admitted that NASD lifted the restrictions and approved its 2003 acquisition of a Florida broker-dealer, despite a substantial delay.
The SEC declared that NASD actions may not be appealed until they are reviewed by NASD’s National Adjudicatory Council.
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