NASD Notice to Members 01-63 - October 2001

SEC Approves New Rule Relating to the Application of NASD Rules and Interpretive Materials to Exempted Securities

Executive Summary

On July 31, 2001, the Securities and Exchange Commission (SEC) approved National Association of Securities Dealers, Inc. (NASD®) Rule 0116, which enumerates those NASD rules and interpretive materials that apply to transactions and business activities involving exempted securities, other than municipal securities. The rule change also codifies an NASD staff interpretation that the non-cash compensation provisions set forth in paragraph (g) of NASD Rule 2820 apply to group variable contracts that are exempted securities.

 

Questions concerning this Notice may be directed to the Office of General Counsel, NASD Regulation, Inc., at (202) 728-8071.