NASD Notice to Members 05-17 - March 2005

NASD Adopts New Sanction Guidelines; Effective Date:March 15, 2005

 

This Notice advises NASD members of modifications to the NASD Sanction Guidelines (Guidelines). NASD is adopting four new guidelines to provide recommended sanctions for violations of Rules 2211 (Institutional Sales Material), 2212 (Telemarketing), and 2711 (Research Analysts and Research Reports). Additionally, NASD is amending the guideline for violations related to communications with the public to indicate that the current sanction guideline also applies to violations of the content standards contained in Rule 2211. The new guidelines are effective as of March 15, 2005, and apply to all actions as of that date, including pending disciplinary cases.

 

The new guidelines for violations of Rules 2211 (Institutional Sales Material), 2212 (Telemarketing), and 2711 (Research Analysts and Research Reports), and the revised guidelines for violations related to communications with the public can be read in their entirety in attachment A to this Notice.

 

Questions concerning this Notice may be directed to Carla Carloni, Office of General Counsel, Regulatory Policy and Oversight, at (202) 728-7019.