January 9, 1989
TO: INVESTMENT ADVISER MEMBERS NO. 4-89
INVESTMENT ADVISER ASSOCIATE MEMBERS NO. 4-89
RE: NASD PROPOSAL TO RESTRICT PAYMENT OF REFERRAL FEES
__________________________________________________________
Attached is a NASD Notice to Members concerning a proposed
rule that would restrict the payment of referral fees by NASD
members to unregistered third parties for the referral of retail
business. Fees paid in connection with a NASD member's
underwriting or merger and acquisition business would be excluded
from the purview of the rule, which also would permit an
occasional fixed amount referral fee payment under certain
circumstances.
Because comments are due to the NASD by February 3, 1989,
please submit your comments to the undersigned by Thursday,
January 26, 1989.
Robert L. Bunnen, Jr.
Assistant General Counsel
Attachment