Guidance

Application of registration requirements to persons inquiring about potential clients' present accounts and other firms and current securities trades.

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A conditional exemption is granted. The Committee determined that B's second contribution was a violation of MSRB G-37 (the Rule) because, when consolidated with the first contribution, the total was $480. This significantly exceeded the $250 de minimis contribution exemption in the Rule. However, the Committee found that the second contribution at issue resulted from human error rather than from insufficient compliance procedures, failure by the firm to educate key personnel, or ignorance by firm personnel of the Rule.

Requirements of NASD Rule 2420 to broker/dealer arrangement to pay certain commissions and SEC Rule 12b-1 fees to accounts of various employee benefit plan customers.

Firm X's request for exemption is denied. The Rule imposes a requirement on all firms subject to its provisions to know them and to have in place supervisory procedures to reasonably insure compliance with the Rule. The language of the rule is clear with respect to the limitations imposed on member firms, as distinct from municipal financial professionals. In the instant matter, we cannot conclude that ignorance of the Rule's provisions constitutes reasonable justification or excuse for granting the requested exemption.

Staff clarification of NASD Notice to Members 96-60 regarding a member's suitability obligation under NASD Rule 2310 with respect to certain investment company transactions.

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Exemptive relief is not granted based on the firm's failure 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.

Exemptive relief is denied due to a failure of the firm to develop and institute procedures reasonably designed to ensure compliance with Rule G-37.

Exemptive relief is based on the firm's 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.

Exemptive relief is denied based on the firm's failure 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.

Uniform Practice Code Rule 11870 requires a member to adopt specific measures to facilitate the portability of all transferable securities, including mutual fund shares.

Registration requirements of a member if a registered principal begins consulting relationship with the member as a compliance officer.

It appears that the violation of the rule described in your letter related directly to the failure of Firm X to adopt procedures to review for political contributions prior to offering employment. Therefore, we cannot conclude that Firm X has demonstrated reasonable justification or excuse for granting the requested exemption. Accordingly, Firm X's request for an exemption is denied.

Staff clarification of NASD Notice to Members 96-60 regarding a member's suitability obligation under NASD Rule 2310.

Staff clarification of NASD Notice to Members 96-60 regarding a member's suitability obligation under NASD Rule 2310.

Exemptive relief is denied. Although C's employment with Firm X was the result of an "internal reorganization", it did result in C being a new employee with Firm X. Had Firm X's procedures as to new hires been followed, the disclosure of the contribution would have been known before C's transfer from an affiliated entity had been effected, rather than after.

Staff interpretation of the continuing commissions policy codified in NASD IM-2420.

Staff interpretation of the continuing commissions policy codified in NASD IM-2420.

Participation of U.S. underwriters in the multinational offering of shares under NASD IM-2110-1(b)(8) and NASD Rule 2740(c) and NASD Rule 2750.

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Affirmative determination for short sales under NASD Rule 3370.