NASD Notice to Members 01-24 - April 2001

SEC Approves Proposed Changes to Rule 2330(f)(2) Relating to Performance Fees

Executive Summary

On February 15, 2001, the Securities and Exchange Commission (SEC or Commission) approved amendments to National Association of Securities Dealers, Inc. (NASD®) Rule 2330(f)(2), to permit NASD members and associated persons that act as investment advisers to share in the customer account profits and gains, subject to the provisions of Rule 205-3 under the Investment Advisers Act of 1940 ("Advisers Act"). The amendments are effective on April 21, 2001.

 

Questions concerning this Notice may be directed to Stephanie M. Dumont, Associate General Counsel, Office of General Counsel, NASD Regulation, Inc. (NASD Regulation), at (202) 728-8176; or Joseph Savage, Counsel, Advertising/Investment Companies Regulation, NASD Regulation, at (240) 386-4534.