The use of negative response letters to transfer customers from one introducing broker/dealer to another may conflict with a member's obligation to observe high standards of commercial honor and just and equitable principles of trade.
The use of negative response letters to transfer customers serviced by "independent contractor" registered representatives from one introducing broker dealer to another may conflict with a member's obligation to observe high standards of commercial honor and just and equitable principles of trade.
Negative response letters may be used for a bulk transfer of customer accounts to a broker-dealer that will provide certain trading services that have been discontinued by member, provided the letters contain the disclosures described in Notice to Members 02-57.
<p>Imposition of a fee to customers for redemption of mutual funds, where the fee initially is charged to the broker/dealer by clearing firms, is generally not prohibited under NASD rules if the fee is reasonable and customers are given adequate notice.</p>
Intra-firm account transfers must be conducted in a manner consistent with a member's obligation to observe high standards of commercial honor and just and equitable principles of trade.
During the period a registered representative is inactive for failure to complete the Regulatory Element, a member may pay the registered representative fees or commissions earned by the representative prior to the period of inactivity unless the member has a policy that prohibits it. However, a member may not pay the inactive registered representative commissions on securities sales that occur during the period that the registered representative is inactive.
<p>Permissible activities of a foreign associate.</p>
<p>Relief granted to banks to facilitate an orderly and efficient transition of employees from a bank into a broker/dealer to comply with the Financial Modernization Act of 1999.<br />
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<p>Relief granted to banks to facilitate an orderly and efficient transition of employees from a bank into a broker/dealer to comply with the Financial Modernization Act of 1999.</p>
NASD Rule 1060 exempts from NASD registration requirements individuals registered as floor members with a national securities exchange whose investment banking or securities functions are related solely and exclusively to effecting transactions on the floor of a national securities exchange. Staff interprets "floor members" for purposes of the rule to include individuals working on the floor of the NYSE and registered with the NYSE as sales assistants.<br/>
