NASD Notice to Members 98-011 - January 1998

SEC Approves Rules Regarding Supervision, Review, and Record Retention of Correspondence; Effective February 15, 1998

Executive Summary

On December 31, 1997, the Securities and Exchange Commission (SEC) approved amendments to National Association of Securities Dealers, Inc. (NASD®) Rules 3010 and 3110. The amendments will allow firms to develop flexible supervisory procedures for the review of correspondence with the public. The rule amendments will be effective on February 15, 1998. The text of the amended Rules and the Federal Register version of the SEC Release are attached. This Notice to Members is being issued to provide guidance on how to implement these rules. This guidance is being issued in coordination with the New York Stock Exchange, which has issued an Information Memo providing guidance to members and member organizations on how to implement similar rules that recently were approved by the SEC.