Guidance

Reminder that offerors may not pay for golf outings, tours or other forms of entertainment while at a meeting it sponsors for the purpose of training or education. This letter was sent by NASD Regulation to a number of members that manufacture and sponsor variable and investment company products and to certain trade associations.

Reminder that offerors may not pay for golf outings, tours or other forms of entertainment while at a meeting it sponsors for the purpose of training or education. This letter was sent by NASD Regulation to a number of members that manufacture and sponsor variable and investment company products and to certain trade associations.

A person who processes agency transactions by communicating all orders to another firm, which then calls or electronically communicates with the contra-side of the transaction, is not involved in the execution of transactions for purposes of Rule 1032(f) and thus is not required to be Series 55 registered.

NASD Regulation does not provide interpretive guidance on the appropriateness of a commission or mark-up schedule under Rule 2440, relating to fair prices and commissions, and the related mark-up policy, IM-2440. Further, NASD Regulation does not provide any assurance in the interpretive process that a firm's absolute reliance on a schedule for determining a commission or a mark-up is appropriate.

Secondary market trading in streetTracks Series Funds does not violate NASD Rules 2830(c) and (g).

Imposition of a fee to customers for redemption of mutual funds, where the fee initially is charged to the broker/dealer by clearing firms, is generally not prohibited under NASD rules if the fee is reasonable and customers are given adequate notice.

Relief granted to banks to facilitate an orderly and efficient transition of employees from a bank into a broker/dealer to comply with the Financial Modernization Act of 1999.

NASD Regulation Inc.'s review of membership names.

A member that is an investment adviser may pay a non-member certain fees and not violate Rule 2420 if the fees paid to the non-member (a) strictly follow the requirements of Rule 206(4)-3 under the Investment Adviser's Act of 1940; and (b) are paid from fees and other income that the member has received in its capacity as an investment advisor.