NASD Notice to Members 97-58 - September 1997

NASD Regulation Requests Comment on Proposed Interpretive Material 1031 Regarding Cold Calling Activity; Comment Period Expires October 31, 1997

Executive Summary

In the following document, NASD Regulation, Inc. (NASD RegulationSM) requests comment on proposed NASD® Interpretive Material 1031 (IM-1031), which would: (1) require registration as a representative for all persons associated with a member who communicate with members of the public, except existing customers of the member, for the purpose of soliciting the purchase of securities or related services or identifying prospective customers and (2) prohibit any member from engaging or using any unregistered person to communicate on behalf of the member with members of the public, except existing customers of the member, to solicit the purchase of securities or related services or identify prospective customers. IM-1031 would permit unregistered persons to contact existing customers for three limited purposes only: (A) extending invitations to firm-sponsored events at which any substantive presentations and account or order solicitation will be conducted by appropriately registered personnel, (B) inquiring whether the existing customer wishes to discuss investments with a registered person, and (C) determining whether the existing customer wishes to receive investment literature from the firm.

 

Questions concerning this Request For Comment should be directed to Gary L. Goldsholle, Senior Attorney, Office of General Counsel, NASD Regulation, at (202) 728-8104.