Memo #
8164
NASD NOTICE ON SUPERVISORY AND OTHER OBLIGATIONS RELATED TO USE OF ELECTRONIC MEDIA
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1 NASD Notice to Members 96-50 (July 1996).
August 19, 1996
TO: SEC RULES COMMITTEE No. 88-96
SUBCOMMITTEE ON ADVERTISING No. 24-96
RE: NASD NOTICE ON SUPERVISORY AND OTHER OBLIGATIONS RELATED TO
USE OF ELECTRONIC MEDIA
______________________________________________________________________________
NASD Regulation, Inc. recently published the attached Notice to Members that discusses
and seeks comment on the supervisory and other obligations of NASD members and their
associated persons with respect to the use of electronic media.1 The Notices primary focus is on
the use of electronic media by registered representatives.
Of interest to investment companies, the Notice generally states that NASD members
must ensure that communications with the public disseminated through electronic media
comply with the approval, recordkeeping and filing requirements of the NASDs rules. Of
particular note, the Notice clarifies that "e-mail directed only to an individual customer, like a
piece of written correspondence sent to an individual customer, is not ‘advertising or ‘sales
literature subject to NASD Rule 2210 (formerly Article III, Section 35 of the NASD Rules of Fair
Practice)." The remainder of the Notice discusses issues related to NASD members suitability,
disclosure and supervisory obligations with respect to registered representatives' use of
electronic media.
Alexander C. Gavis
Assistant Counsel
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