<p>Employee Leasing Arrangement Does Not Violate Rule 2420</p>
<p>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.</p>
<p>Rebate of SEC Rule 12b-1 fees and commissions to non-member retirement plan and its participants will not violate NASD Rule 2420 if the SEC determines that the rebate recipients are not required to register as broker/dealers.</p>
<p>Proposed employee leasing arrangement does not violate Rule 2420.</p>
Application of Rule 2370 to lending arrangements between registered persons and banks or other financial institutions in the business of lending money.
<p>A partnership registering as a broker/dealer, which will be trading only for its own account, has no customers for purposes of Rule 2330(f).</p>
Application of NASD Rule 2330(f) to Proposed Profit Sharing Arrangement.
The provisions of the three quote rule apply to transactions in foreign securities executed on a foreign exchange for member customers.
<p>Application of Rule 2320(g) and Rule 3110(b) to quotations displayed in the Electronic Quotation Service (prior to the adoption of proposed Rule 6630).</p>
<p>Priced quotations by an ECN or ATS displayed on the OTC Bulletin Board are considered priced quotations for purposes of compliance with Rule 2320(g)(1).</p>
