Regulatory Notice 08-73

SEC Approves Amendments to NASD Rule 2220 to Update the Standards for Options Communications; Effective Date: March 4, 2009

Executive Summary

Effective March 4, 2009, FINRA has amended the provisions of NASD Rule 2220 to achieve greater consistency with FINRA’s general communications rule (NASD Rule 2210) and the options communications rules of other self-regulatory organizations (SROs).1 As amended, NASD Rule 2220, among other things: (1) uses, to the extent appropriate, the same terminology and definitions as in FINRA’s general rules on communications with the public; (2) makes the requirements for principal review of correspondence concerning options the same as for correspondence generally; and (3) updates the standards on the content of communications that precede the delivery of the options disclosure document (ODD).2 The amendments to NASD Rule 2220 are set forth in Attachment A of this Notice.

 

FINRA also is providing guidance to firms regarding ODD delivery via hyperlink in two situations.

 

Questions concerning this Notice should be directed to:

 

  • Patricia Albrecht, Assistant General Counsel, Office of General Counsel (OGC), at (202) 728-8026;
  • Amy C. Sochard, Director, Programs & Investigations, Advertising Regulation, at (240) 386-4508; or 
  • Matthew E. Vitek, Counsel, OGC, at (202) 728-8156.

 

1 See Securities Exchange Act Release No. 58738 (October 6, 2008), 73 FR 60371 (October 10, 2008) (SR-FINRA-2008-013).

 

2 Id.