Letters to NASD Members

May 2003


Dear Small NASD Member Firms:


I would like to call to your attention NASD's announcement that the deadline for the NASD breakpoint compliance self-assessment has been extended from May 15 to June 13, 2003.

 

As you are aware, NASD is requiring certain member firms that have sold front-end load mutual funds in the last two years to conduct a self-assessment of breakpoint compliance and to report the results to NASD. Member firms that had more than a de minimis number of mutual fund transactions in Class A shares during the period beginning January 1, 2001, through December 31, 2002, will follow a standard methodology provided by NASD--an online self-assessment. Self-assessment instructions detail the manner in which firms are required to conduct and report the results of the assessment.

 

Please also note that responses must be submitted to NASD by no later than June 13 as no further extensions will be granted.

 

For more information about completing this self-assessment, please refer to the breakpoints background information and self-assessment instructions.

 

Sincerely,

 

Bill Alsover
Chairman, NASD Small Firm Advisory Board