For updates and guidance related to COVID-19 / Coronavirus, click here.
2240. Disclosure of Control Relationship with Issuer
This rule is no longer applicable. NASD Rule 2240 has been superseded by FINRA Rule 2262. Please consult the appropriate FINRA Rule.
A member controlled by, controlling, or under common control with, the issuer of any security, shall, before entering into any contract with or for a customer for the purchase or sale of such security, disclose to such customer the existence of such control, and if such disclosure is not made in writing, it shall be supplemented by the giving or sending of written disclosure at or before the completion of the transaction.