Regulatory Notice 09-10

SEC Approves Rule Relating to Supervision of Market Letters

Effective Date: February 5, 2009
This Notice was updated to add Attachment A (the amended rule text).

Effective February 5, 2009, firms may supervise "market letters" as correspondence rather than sales literature, unless the letters are distributed to 25 or more existing retail customers within any 30-calendar-day period and make a financial or investment recommendation or otherwise promote the firm's product or service.

The amendment to NASD Rules 2210 (Communications with the Public) and 2211 (Institutional Sales Material and Correspondence) and Incorporated NYSE Rule 472 (Communications with the Public)1 also eliminates the requirement under Incorporated NYSE Rule 472 for market letters to be approved in advance by a supervisory analyst or qualified person. Market letter is defined as a communication that is excepted from the definition of "research report" under NASD Rule 2711(a)(9)(A) and Incorporated NYSE Rule 472.10(2)(a).

The text of the amendment is set forth in Attachment A.

Questions concerning this Notice should be directed to:

  • Joseph P. Savage, Vice President and Counsel, Investment Companies Regulation, at (240) 386-4534; or
  • Thomas A. Pappas, Vice President and Director, Advertising Regulation, at (240) 386-4553.