Notice to Members 06-69

NASD Issues Additional Guidance on Rule 3060 (Influencing or Rewarding Employees of Others)

As a result of a recent review of gift and gratuity practices at member firms, NASD has become aware of several deficiencies in firms’ compliance procedures relating to the application of Rule 3060. To aid firms in their compliance efforts, NASD is issuing the Notice, which focuses on some of the more common compliance weaknesses observed.

Questions regarding this Notice may be directed to Gary L. Goldsholle, Vice President and Associate General Counsel, Office of the General Counsel, at (202) 728-8104; or Joseph P. Savage, Associate Vice President, Investment Companies Regulation, Regulatory Policy and Oversight, at (240) 386-4534.