Regulatory Notice 08-35

SEC Approves Amendments to NASD Rule 2810 (Direct Participation Programs)

Effective Date: August 6, 2008

NASD Rule 2810 (Direct Participation Programs) addresses the regulation of compensation, fees and expenses in public offerings of direct participation programs and unlisted real estate investment trusts.

Effective August 6, 2008, amendments to Rule 2810:

  1. provide greater clarity to the Rule’s underwriting compensation limits and the use and allocation of offering proceeds;
  2. require disclosure regarding the liquidity of prior programs offered by the same sponsor;
  3. prohibit sales loads on reinvested dividends; and
  4. enable bona fide training and education meetings at appropriate locations.

Questions concerning this Notice should be directed to 

  • Joseph E. Price, Vice President, Corporate Financing Department, at (240) 386-4642;
  • Gary L. Goldsholle, Vice President and Associate General Counsel, Office of the General Counsel (OGC), at (202) 728-8104; or
  • Adam H. Arkel, Assistant General Counsel, OGC, at (202) 728-6961.