* See Memorandum to Advertising Subcommittee No. 22-97 and SEC Rules Committee No. 63-97, dated June 20, 1997.
July 7, 1997
TO: ADVERTISING SUBCOMMITTEE No. 25-97
SEC RULES COMMITTEE No. 65-97
RE: INSTITUTE PREPARES DRAFT COMMENT LETTER ON NASDR
CORRESPONDENCE RULE PROPOSAL
______________________________________________________________________________
As we previously reported, NASD Regulation, Inc. has requested comment on proposed
amendments to NASD Conduct Rule 2210 that would require written and electronic
communications prepared for a single customer to meet certain of Rule 2210s content
requirements.* Attached and summarized below is the Institutes draft comment letter on the
proposal.
The letter states the Institutes belief that the proposed amendments are unnecessary
and inappropriate and therefore should not be adopted. This position is based upon our belief
that: (1) existing NASD Conduct Rules governing member correspondence with individual
customers are more than sufficient to curb any perceived wrongful conduct; (2) imposing the
requirements of Rule 2210 on correspondence would be highly inappropriate in many contexts;
and (3) the implementation of the proposed amendments would add another extremely costly
and burdensome layer of regulation applicable to NASD members without any corresponding
benefit to consumers.
Comments must be filed by Tuesday, July 15, 1997. Please provide your comments to
me at (202) 326-5819 by Friday, July 11th.
Joseph P. Savage
Assistant Counsel
Attachment