NASD Notice to Members 97-82 - November 1997

SEC Approves Amendments to Conduct Rules 2710 and 2720 Regarding Mergers, Acquisitions, and Exchange Offers; Effective December 15, 1997

Executive Summary

On October 29, 1997, the Securities and Exchange Commission (SEC) approved amendments that clarify the application of Rules 2710 and 2720 of the National Association of Securities Dealers, Inc. (NASD®) Conduct Rules to mergers, acquisitions, exchange offers, and similar transactions, and establish limitations on certain “tail fee” arrangements.1  The amendments are effective December 15, 1997, with respect to transactions that have not commenced as of that date.

 

Questions regarding this Notice may be directed to Suzanne E. Rothwell, Chief Counsel, Corporate Financing, NASD Regulation, Inc., and Richard J. Fortwengler, Associate Director, Corporate Financing, NASD RegulationSM, at (202) 974-2700.