SEC Relaxes Rules in Storm Zone

NEW YORK -- The Securities and Exchange Commission will extend filing deadlines and suspend requirements to deliver documents to areas affected by Hurricane Katrina, The Wall Street Journal reported Tuesday.

At the same time, the agency warned that it is "on the lookout for Katrina-related securities scams" and vowed to vigorously prosecute those who try to defraud hurricane victims.

The SEC plans to help broker-dealers provide access to accounts held at offices that no longer are operable. Mutual-fund companies and other securities firms won't be required to deliver prospectuses and other documents in the affected area.

The SEC established hot lines to answer questions and to identify the needs of those in the securities industry affected by the hurricane. The SEC can be reached at (202) 551-3300 or by e-mail at cfhotline@sec.gov1.

The National Association of Securities Dealers published a notice outlining procedures for allowing customers continued access to their accounts. The NASD also said its New Orleans District Office, whose operations cover Louisiana, Mississippi, Kentucky, Arkansas, Oklahoma and Tennessee, would be closed indefinitely. The office's enforcement caseload is being transferred to the Chicago district office.

-- NSSCPA.org News Staff

Posted on 9/8/05