<p>Secondary market trading in ETF Advisors Trust shares does not violate NASD Rules 2830, 2110 or 2420.</p>
<p>Secondary market trading in Fresco Index Shares Funds would be consistent with the requirements of NASD Rules 2830(c) and (g).</p>
<p>Secondary market trading in Fidelity Nasdaq Composite Index Tracking Stock would be consistent with the requirements of NASD Rules 2110, 2420, 2830(c), (g), and (i), and Interpretive Material 2830-2.</p>
<p>A sales incentive program can combine non-conforming criteria based on sales prior to January 1, 1999 with conforming criteria based on sales subsequent to January 1, 1999 for incentives to be provided prior to June 30, 2000.<br />
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<p>Non-cash compensation sales contest permissible under Conduct Rule 2820(h) where member sells only one variable annuity and one variable life product and appropriate records are maintained.<br/></p>
<p>Application of Rule 2820 (h) to a non-cash compensation arrangement that excludes variable annuity contracts that are sold in exchange transactions pursuant to Internal Revenue Code Section 1035 or pursuant to a rollover transaction under Internal Revenue Code Section 402.<br />
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A member is not an "affiliated member" of an insurance company for purposes of Rule 2820(g)(4)(D) where no control relationship exists between the entities.
<p align="left">Reminder that offerors may not pay for golf outings, tours or other forms of entertainment while at a meeting it sponsors for the purpose of training or education. This letter was sent by NASD Regulation to a number of members that manufacture and sponsor variable and investment company products and to certain trade associations.<br />
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<p>The expansion of the NASD's sales practice authority over group variable contracts in August 1996 requires that broker/dealers apply NASD rules to all their sales of group variable contracts, including pre-August 1996 variable contracts. Thus, broker/dealers who had not set up record-keeping procedures for pre-August 1996 contracts must now do so.<br/></p>
<p align="left">Applicability of Rule 2820(g) to payments to an associated person from an issuer's deferred compensation plan.</p>
