NASD Notice to Members 05-24 - April 2005

NASD Announces Exemption from the Research Analyst Qualification Requirements (Series 86 and 87) for Certain Employees of Foreign Affiliates Who Contribute to Member Research Reports

Executive Summary

NASD has amended NASD Rule 1050 to provide an exemption from the research analyst qualification requirements for certain research analysts employed by member foreign affiliates in jurisdictions that NASD and the New York Stock Exchange (NYSE) (together, SROs) have determined have acceptable qualification standards and research analyst conflict of interest rules. Currently, the exemption is available to research analysts in the following jurisdictions: the United Kingdom, China, Hong Kong, Singapore, Thailand, Malaysia, and Japan. Eligibility for the exemption is conditioned on several factors, including imposition of NASD Rule 2711 on foreign affiliates and their research analysts in those instances where the research analyst contributes to the preparation of a member's research report.

 

The amendment was filed on April 1, 2005, and became effective upon filing.

 

Questions concerning this Notice may be directed to Philip Shaikun, Associate General Counsel, Regulatory Policy and Oversight, at (202) 728-8451.