NASD Notice to Members 04-47 - June 2004

Members' Obligations with Respect to the Transfer of Cost Basis Information

Executive Summary

It has come to NASD's attention that some members may be purposely interfering with the transfer of cost basis information for customers who transfer their accounts to another firm and ask for their cost basis information to be transferred to the new firm. The purpose of this Notice is to remind members that impeding the transfer of cost basis information upon customer request violates NASD Rule 2110, which requires members, in the conduct of their business, to observe high standards of commercial honor and just and equitable principles of trade.

 

Questions concerning this Notice generally may be directed to Shirley H. Weiss, Associate General Counsel, Office of General Counsel, Regulatory Policy and Oversight, at (202) 728-8844.