NASD Notice to Members 99-03 - January 1999

SEC Approves Rule Amendments Requiring Review Of Incoming, Written Correspondence; Effective March 15, 1999

Executive Summary

On November 30, 1998, the Securities and Exchange Commission (SEC) approved amendments to National Association of Securities Dealers, Inc. (NASD®) Rule 3010, requiring firms to review incoming, written correspondence to identify customer complaints and funds and to ensure they are properly handled. The rule amendments will be effective on March 15, 1999. This amendment revises rule changes that became effective on April 7, 1998. The text of the amended Rule 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 this rule.

Questions concerning this Notice should be directed to Lawrence Kosciulek, Assistant Director, Advertising/Investment Companies Regulation, NASD Regulation, Inc. (NASD RegulationSM), at (202) 728-8329; or Mary N. Revell, Associate General Counsel, Office of General Counsel, NASD Regulation at (202) 728-8203.