* See Memorandum to Advertising Subcommittee No. 22-97 and SEC Rules Committee No. 63-97, dated June 20, 1997.
July 14, 1997
TO: ADVERTISING SUBCOMMITTEE No. 27-97
SEC RULES COMMITTEE No. 68-97
RE: INSTITUTE COMMENT LETTER ON NASDR CORRESPONDENCE RULE
PROPOSAL
______________________________________________________________________________
The Institute recently submitted the attached comment letter to NASD Regulation, Inc.
regarding 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.*
The Institutes comment letter opposes the proposal on the ground that it is 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.
Joseph P. Savage
Assistant Counsel
Attachment (in .pdf format)