Guidance
We offer guidance to firms in the form of podcasts, webinars, FAQs, reports, and more. Use the toggle below to find guidance by topic, type or date.
A
B
C
D
E
F
G
I
M
N
O
P
R
S
T
Interpretive Letter
Placing limit orders in ECNs that comply with the ECN Display Alternative under the SEC's Order Handling Rules in order to affect the price of transactions effected through POSIT may constitute market manipulation in violation of the antifraud provisions of the securities laws and NASD rules.
August 29, 1997
Interpretive Letter
A short interest rebate, under certain circumstances, may be paid to a non-member trust company as compensation for work performed in administering accounts.
August 20, 1997
Interpretive Letter
Clarification of NASD Notice to Members 96-33: application of Rule 3040 to registered representatives of a distributor who also are employed by investment advisers to manage the portfolios of investment companies.
August 04, 1997
Exemptive Letter
Exemptive relief is granted based on the determination that the dealer: (1) had developed and instituted procedures reasonably designed to ensure compliance with the rule; (2) had no actual knowledge of the contribution prior to or at the time of the contribution; (3) had taken all available steps to cause the person involved in making the contribution to obtain a return of the contribution; and (4) had taken such other remedial or preventative measures as were appropriate under the circumstances.
July 31, 1997
Interpretive Letter
A wrap fee program in which a registered representative/investment adviser neither receives transaction fees nor is involved with the execution of securities transactions would be subject to NASD Rule 3030, rather than Rule 3040.
July 30, 1997
Interpretive Letter
Intersection between the NASD's Limit Order Protection Rule and Rule 206(3) of the Investment Advisors Act of 1940 for fee-based wrap accounts.
[NASDAQ Staff Interpretive Letter]
July 03, 1997
Interpretive Letter
Application of registration requirements to persons inquiring about potential clients' present accounts and other firms and current securities trades.
June 19, 1997
Regulatory and Compliance Alerts (RCA)
full_html
June 01, 1997
Exemptive Letter
A conditional exemption is granted. The Committee determined that B's second contribution was a violation of MSRB G-37 (the Rule) because, when consolidated with the first contribution, the total was $480. This significantly exceeded the $250 de minimis contribution exemption in the Rule. However, the Committee found that the second contribution at issue resulted from human error rather than from insufficient compliance procedures, failure by the firm to educate key personnel, or ignorance by firm personnel of the Rule.
May 20, 1997
Interpretive Letter
Intersection between a member's obligation under the NASD's Limit Order Protection Rule and the Employment Retirement Income Security Act ("ERISA") for accounts subject to ERISA.
[NASDAQ Staff Interpretive Letter]
April 16, 1997
Interpretive Letter
Application of NASD Rules to the sale of group variable products.
April 11, 1997
Interpretive Letter
Requirements of NASD Rule 2420 to broker/dealer arrangement to pay certain commissions and SEC Rule 12b-1 fees to accounts of various employee benefit plan customers.
April 11, 1997
Exemptive Letter
Firm X's request for exemption is denied. The Rule imposes a requirement on all firms subject to its provisions to know them and to have in place supervisory procedures to reasonably insure compliance with the Rule. The language of the rule is clear with respect to the limitations imposed on member firms, as distinct from municipal financial professionals. In the instant matter, we cannot conclude that ignorance of the Rule's provisions constitutes reasonable justification or excuse for granting the requested exemption.
March 09, 1997
Interpretive Letter
Staff clarification of NASD Notice to Members 96-60 regarding a member's suitability obligation under NASD Rule 2310 with respect to certain investment company transactions.
March 04, 1997
Regulatory and Compliance Alerts (RCA)
full_html
March 01, 1997
Exemptive Letter
Exemptive relief is not granted based on the firm's failure to implement compliance procedures sufficient to educate its municipal finance professionals regarding the particular provisions of the Rule, or otherwise prevent the occurrence of the contributions.
February 28, 1997
Exemptive Letter
Exemptive relief is denied due to a failure of the firm to develop and institute procedures reasonably designed to ensure compliance with Rule G-37.
February 28, 1997
Exemptive Letter
Exemptive relief is based on the firm's failed to implement compliance procedures sufficient to educate its municipal finance professionals regarding the particular provisions of the Rule, or otherwise prevent the occurrence of the contributions.
February 28, 1997
Exemptive Letter
Exemptive relief is denied based on the firm's failure to implement compliance procedures sufficient to educate its municipal finance professionals regarding the particular provisions of the Rule, or otherwise prevent the occurrence of the contributions.
February 28, 1997
Interpretive Letter
Uniform Practice Code Rule 11870 requires a member to adopt specific measures to facilitate the portability of all transferable securities, including mutual fund shares.
February 21, 1997
Interpretive Letter
Registration requirements of a member if a registered principal begins consulting relationship with the member as a compliance officer.
February 19, 1997
Exemptive Letter
It appears that the violation of the rule described in your letter related directly to the failure of Firm X to adopt procedures to review for political contributions prior to offering employment. Therefore, we cannot conclude that Firm X has demonstrated reasonable justification or excuse for granting the requested exemption. Accordingly, Firm X's request for an exemption is denied.
January 27, 1997
Interpretive Letter
Staff clarification of NASD Notice to Members 96-60 regarding a member's suitability obligation under NASD Rule 2310.
January 23, 1997
Interpretive Letter
Staff clarification of NASD Notice to Members 96-60 regarding a member's suitability obligation under NASD Rule 2310.
January 23, 1997
Exemptive Letter
Exemptive relief is denied. Although C's employment with Firm X was the result of an "internal reorganization", it did result in C being a new employee with Firm X. Had Firm X's procedures as to new hires been followed, the disclosure of the contribution would have been known before C's transfer from an affiliated entity had been effected, rather than after.
January 07, 1997