NASD Notice to Members 05-27 - April 2005

NASD Requests Comment on Proposal to Require Principal Pre-Use Approval of Member Correspondence to 25 or More Existing Retail Customers within a 30-Calendar-Day Period; Comment Period Expires May 27, 2005

Executive Summary

NASD currently defines correspondence to include any written letter or electronic mail message distributed by a member to (a) one or more of its existing retail customers, and (b) fewer than 25 prospective retail customers within any 30 calendar-day period. The definition of correspondence is significant because firms generally are not required to have a registered principal approve correspondence prior to use, and because some of the specific content standards applicable to other types of communications with the public do not apply to correspondence. NASD is proposing to amend Rule 2211 to require that a registered principal approve, prior to use, any correspondence that is sent to 25 or more existing retail customers within a 30-calendar-day period.


Questions concerning this Notice may be directed to Thomas M. Selman, Senior Vice President, Investment Companies/Corporate Financing, at (240) 386-4533; Joseph P. Savage, Associate Vice President, Investment Companies Regulation, at (240) 386-4534; or Philip A. Shaikun, Associate General Counsel, Office of General Counsel, Regulatory Policy and Oversight, at (202) 728-8451.

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The views, expressions, findings and opinions expressed in the comments on this Web page are solely those of the author(s) and FINRA accepts no responsibility for the content of the comments.

Comments By Date Received
Fintegra, LLC (PDF 29 KB) 4/14/2005
Wulff, Hansen & Co. (PDF 70 KB) 4/19/2005
Frank Dealy (PDF 32 KB) 4/21/2005
Krieger-Campbell, Incorporated (PDF 26 KB) 5/20/2005
Association of Registration Management (PDF 1,677 KB) 5/25/2005
Jefferson Pilot Securities Corporation (PDF 36 KB) 5/27/2005
Cutter & Company, Inc. 5/27/2005
Investment Company Institute (PDF 87 KB) 5/27/2005
Edward D. Jones & Co. LP (PDF 56 KB) 5/27/2005
UBS Financial Services Inc. (PDF 445 KB) 5/27/2005
Financial Services Institute (PDF 64 KB) 5/27/2005