NASD Notice to Members 02-57 - September 2002

Use of Negative Response Letters for the Bulk Transfer of Customer Accounts

Executive Summary

In October 2000, the staff of NASD issued an interpretive letter concerning the use of "negative response letters" to transfer certain customer accounts to a new broker/dealer. Since the publication of the interpretive letter, the staff has received many inquiries from the membership for guidance on the use of negative response letters to transfer customer accounts. The purpose of this Notice to Members is to provide interpretive guidance to the membership on this topic.

 

Questions concerning this Notice to Members may be directed to Sarah J. Williams, Assistant General Counsel, NASD Regulatory Policy and Oversight, at (202) 728-8083.