<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/>
Unregistered associated persons may not routinely take customer orders during periods of peak telephone call volume.<br/>
Permissible activities of a Series 11 Representative (Assistant Representative/Order Processing).<br/>
Certain activities of unregistered persons would not be permissible under <i>Notice to Members 88-50</i>.<br/>
