[11118]
July 15, 1999
TO: SALES FORCE MARKETING COMMITTEE No. 14-99
BROKER/DEALER ASSOCIATE MEMBERS No. 7-99
RE: NASDR ISSUES QUESTIONS AND ANSWERS RELATING TO NON-CASH
COMPENSATION RULES
______________________________________________________________________________
As you are aware, the NASD’s rules governing non-cash compensation have been a frequent topic
of discussion at the Institute’s Sales Force Marketing Committee meetings. Last year, the SEC
approved amendments to these rules. The amendments became effective on January 1, 1999, with
transition provisions for non-cash compensation programs in existence on that date.
To facilitate compliance with the amended rules, NASD Regulation, Inc. has issued the attached Notice
to Members setting forth questions and answers that have been raised with respect to particular
circumstances covered by the new rules.
The Notice to Members states that the guidance it contains is not intended to provide an exhaustive
analysis of all non-cash arrangements subject to the rules. It indicates that NASD members should
feel free to seek additional advice from NASDR by contacting the persons listed in the Executive
Summary.
Linda Brenner
Director, Operations and Training
Attachment