NASD Notice to Members 06-56 - October 2006

SEC Approves Amendments to the Safe Harbor for Business Expansions; Effective Date: November 3, 2006

Executive Summary

On August 7, 2006, the Securities and Exchange Commission (SEC) approved amendments to Interpretative Material 1011-1 (Safe Harbor for Business Expansions) (IM-1011-1) to limit the types of violations of Rule 2110 (Standards of Commercial Honor and Principles of Trade) that would result in a member being ineligible to use the safe harbor for business expansions and made certain technical changes.1 IM-1011-1, as amended, is set forth in Attachment A of this Notice. The amendments become effective on November 3, 2006.

Questions regarding this Notice may be directed to Kathryn M. Moore, Assistant General Counsel, Office of General Counsel, Regulatory Policy and Oversight, at (202) 974-2974.

 

1 Exchange Act Release No. 54279 (August 7, 2006), 71 FR 46533 (August 14, 2006) (Approval Order of SR-NASD-2006-070).