NASD Notice to Members 98-098 - December 1998

SEC Approves Rule Change Relating to Mutual Fund Breakpoint Sales

Executive Summary

On November 10, 1998, the Securities and Exchange Commission (SEC) approved amendments to the National Association of Securities Dealers, Inc. (NASD®) Interpretive Memorandum 2830-1 (IM-2830-1) to clarify the application of the mutual fund breakpoint sales rule to modern portfolio investment strategies. The amendments are effective immediately. Questions regarding this Notice may be directed to Joseph E. Price, Director, Corporate Financing, NASD Regulation, Inc. (NASD RegulationSM), at (202) 728-8877, or Robert J. Smith, Assistant General Counsel, Office of General Counsel, NASD Regulation, at (202) 728-8176.