Memo #
9245
NASD PROPOSES POLICY RELATING TO THE ELECTRONIC DELIVERY OF INFORMATION BETWEEN MEMBERS AND THEIR CUSTOMERS
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1 62 Fed. Reg. 47858 (Sept. 11, 1997).
2 See Securities Act Release No. 7233 (Oct. 6, 1995), 60 Fed. Reg. 53458 (Oct. 13, 1995); Securities Exchange Act Release
No. 37182 (May 9, 1997), 61 Fed. Reg. 24644 (May 15, 1996).
[9245]
September 15, 1997
TO: ADVERTISING SUBCOMMITTEE No. 31-97
SEC RULES COMMITTEE No. 89-97
RE: NASD PROPOSES POLICY RELATING TO THE ELECTRONIC DELIVERY OF
INFORMATION BETWEEN MEMBERS AND THEIR CUSTOMERS
______________________________________________________________________________
The National Association of Securities Dealers, Inc. recently filed with the Securities and
Exchange Commission a proposed Notice to Members setting forth the NASDs policy relating
to the electronic delivery of information between NASD members and their customers.1 The
NASDs policy is based upon the SECs guidelines that were published in October 1995 and
May 1996 and that establish a framework under which broker-dealers and others may use
electronic media as alternatives to paper-based media to satisfy delivery obligations under
federal securities laws.2
The proposed Notice to Members establishes the NASDs policy regarding the use by
members of electronic media to transmit documents that they are required or permitted to
furnish to customers under NASD rules and to receive communications from customers. The
Notice states that use of electronic media is permitted, provided that members comply with the
standards contained in the SEC releases. The Notice summarizes these standards, which
address, among other things, notice, access, evidence to show delivery, communication of
personal financial information, and consent. The Notice also contains a list of current NASD
rules that require or permit communications between members and their customers for which
electronic delivery may be used in accordance with the standards contained in the SEC releases.
A copy of the proposal is attached.
Comments on this proposal must be filed with the SEC by Thursday, October 2, 1997.
If you have issues that you would like the Institute to address, please either call (202/326-5819)
or e-mail (savage@ici.org) me by Monday, September 22, 1997.
Joseph P. Savage
Assistant Counsel
Attachment (in .pdf format)