NOTE: Offers of Settlement (OS) and Letters of Acceptance, Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions and to the entry of findings.

SECURITIES INDUSTRY COMMENTATOR™
2005

By Bill Singer

NASD DISSIDENTS LAUNCH NATIONAL CONTESTED ELECTION
 FOR BOARD OF GOVERNORS

December 16, 2005 Request for Vote

See Resumes of Candidates

Dear NASD Executive Representative:

On Friday December 9, 2005 a slate of three candidates nominated by NASD members by written petition won a convincing victory to be on the District 7 Committee. We must keep up this momentum for the NASD Board of Governors race.

There will be three-contested NASD Board of Governors positions for this election. The paper ballots should be in the mail to you on December 30, 2005. In addition, you will be able to vote online for this important election.

Only the designated Executive Representative on the Firm's Form BD is eligible to cast one vote for each contested Board position regardless of the amount of their firm's net capital, number of employees, or number of transactions. In other words, each NASD Member firm is allotted one vote regardless of their size!!

The NASD Board of Governors is responsible for all aspects of the NASD including, but not limited to, hiring, budgets, and rule proposals. The NASD Board of Governors can establish policy on regulation and enforcement.

This election is essential to every NASD Member in order to decide the direction our industry will be heading in the coming years. The NASD Board of Governors must have leaders that represent the views of its Members. All NASD Members must determine what their regulatory direction will be in the future and vote for the Candidate that will best represent their views on the NASD Board of Governors.

Mr. Richard Goble, North American Clearing (Industry Position), Mr. Brian Kovack, Kovack Securities (Independent Firms Position), and RADM Tyler Dedman (retired) (Public Position) have been nominated by over 600 NASD Executive Representatives to be on the ballot to run for the NASD Board of Governors.

Mr Richard Goble, Mr. Brian Kovack, and RADM Tyler Dedman (retired) support the following:
1) Expanded educational notification to Members of potential compliance problems before
any disciplinary process is forced upon you;
2). Expediting and improving the fairness of disciplinary process;
3) Lessening penalties for rule violations with no customer harm;
4) Simplifying supervisory systems with a return to the "reasonableness" standard;
5) Shortening the process requirement to expand your business;
6) Reduction on costly Rule 8210 requests for information;
7) Open and fair election process;
8) A presumption of innocence at all times.

Your vote will make a difference !! This is your opportunity to voice your opinion about what you, as an NASD Member, deserve!!!
If you need more information, please feel free to contact Richard Goble at 800 770-9049 or by email: richard@northamericanclearing.com.