Name Not Public
February 28, 1997
Counsel for Firm X
RE: Firm X MSRB Rule G-37 Exemption Request
The Fixed Income Committee of NASD Regulation, Inc. has reviewed your client’s appeal for exemptive relief and has determined to deny the request. The Committee found that the firm failed to implement compliance procedures sufficient to educate its municipal finance professionals regarding the particular provisions of the Rule, or otherwise prevent the occurrence of the contributions. The Committee noted the MSRB's guidance that a situation involving a lack of understanding by a municipal finance professional of Rule G-37 or any of its particular provisions is not sufficient to justify the granting of an exemption. Moreover, the MSRB has provided guidance that it is not sufficient to justify granting an exemption based on a situation where the associated person was unaware at the time of the contribution that he was a municipal finance professional by virtue of any of the activities listed in the rule's definition of municipal finance professional.
Very Truly Yours,
Alden S. Adkins
|cc:||Christopher A. Taylor, MSRB|