NASD Notice to Members 02-51 - August 2002

NASD Requests Comment on Proposed Interpretative Material Regarding Investment Analysis Tools. Comment Period Expires on September 13, 2002

Executive Summary

NASD Rule 2210(d)(2)(N) prohibits NASD member firms from making predictions or projections of investment results to the public. NASD staff has interpreted the rule to prohibit members from providing customers with access to interactive technological tools that produce simulations and statistical analyses showing a range of probabilities that various investment outcomes might occur. The proposed Interpretive Material to Rule 2210 (Attachment A) would provide a limited exception to Rule 2210(d)(2)(N), allowing members to provide customers direct access to such tools under certain circumstances. NASD seeks comment on whether it should amend Rule 2210(d)(2)(N) to create such an exception and, if so, on the specific provisions of the proposed Interpretive Material.

 

Questions or comments concerning the information contained in this Notice to Members (NtM) may be directed to Nancy C. Libin, Assistant General Counsel, Office of General Counsel, Regulatory Policy and Oversight, at (202) 728-8835 or nancy.libin@nasd.com, or James S. Wrona, Assistant General Counsel, Office of General Counsel, Regulatory Policy and Oversight, at (202) 728-8270 or via e-mail, or Joseph P. Savage, Counsel, Investment Companies Regulation, Regulatory Policy and Oversight, at (240) 386-4534 or via e-mail.