NASD Notice to Members 97-89 - December 1997

SEC Approves Bank Broker-Dealer Rule; Effective February 15, 1998

Executive Summary

On November 4, 1997, in Release No.  34-39294, the Securities and Exchange Commission (SEC or Commission) approved new National Association of Securities Dealers, Inc. (NASD®) Rule 2350, which specifies requirements applicable to broker/dealers operating on the premises of financial institutions (Bank Broker/Dealer Rule or Rule).1 The new Rule will be effective on February 15, 1998.  This Notice contains questions and answers to assist members in complying with the new Rule.  The text of the new Rule and the Federal Register version of the SEC Release are attached.

 

Questions concerning this Notice should be directed to R. Clark Hooper, Senior Vice President, Office of Disclosure and Investor Protection, NASD Regulation, Inc., at (202) 728-8325, or Mary N. Revell, Associate General Counsel, Office of General Counsel, NASD RegulationSM, at (202) 728-8203.  Questions concerning the SEC’s approval order should be directed to the SEC’s Office of Interpretations and Guidance, at (202) 942-0069.