Proposed Rule Change Regarding Prohibition Against Guarantees and Sharing in Customer Accounts

NASD has filed with the SEC a proposed rule change to NASD Rule 2330(e) to clarify that members and their associated persons are prohibited from guaranteeing any customer against loss in connection with any securities transaction or in any securities account of such customer. In addition, NASD is proposing that associated persons obtain written authorization from their employing member firm and the customer prior to sharing in a customer’s account under Rule 2330(f). The proposed rule change to Rule 2330(f) also deletes the requirement that members and associated persons obtain the written authorization of the member carrying the account prior to sharing in a customer’s account.

TitleFormat - SizeStatus
Text of proposed rule changePDF - 38.61 KB
Federal Register NoticePDF - 43.9 KB
Approval OrderPDF - 40.05 KB