Nancy Johnson, a planner and FPA Board member, provided this list of some of the regulatory and compliance issues that will be addressed by the new broker/dealer organization spun off from the FPA.
03-33 Instant Messaging: clarification by NASD of the supervisory obligations and recordkeeping requirements for instant messaging.
03-17 Municipal Fund Securities: clarification on the treatment of sales material for municipal fund securities such as 529 plans.
03-07 Hedge Funds: clarification of disclosure requirements, suitability determinations, supervision of those selling hedge funds and funds of hedge funds, and the training of sales staff regarding features, risks, and suitability of hedge funds.
03-34 Anti-Money Laundering: rule regarding customer ID procedures at B/Ds.
03-29 Compliance Officer: a proposed rule to require members to designate a chief compliance officer who will, with the CEP, certify annually that there are adequate compliance and supervisory policies and procedures in place.
(For details on the above issues, go to http://cchwallstreet.com/NASD)
Notice 03-13: NASD reminder on transaction reporting requirements and enforcement actions against firms for violations of MSRB transaction reporting under Rules G-12 and G-14.
Notice 03-50: NASD reminder to firms regarding mutual fund transactions; also directs a review of policies and procedures on mutual funds.
Notice 03-47: Guidelines for firms to follow in calculating refunds to customers who did not receive appropriate breakpoint discounts in connection with the purchase of Class A shares of front-end load mutual funds, and guidance on the capital treatment of refund liability.
Notice 03-54: Discussion on disclosure of revenue sharing and differential cash compensation arrangements relating to the sale of investment company securities.
(For more details on the above, visit www.nasdr.com)
In addition, readers may want to check the Web site of the SEC, www.sec.gov, for rules, proposed rules, and requests for comment on subjects ranging from supervisory control amendments for self-regulatory organizations (SEC Release No. 34-48460; File Nos. SR-NASD-2002-162; SR-NYSE-2002-36, September 8, 2003 – and SEC Release No. 34-48298; File No. SR-NASD-2002-162); supervisory analysts, continuing education, reporting requirements, and communications with the public (SEC Release No. 34-48252; File No. SR-NASD-2002-154; SR-NYSE-2002-49); and expungement of customer dispute information from central registration depository systems (SEC Release No. 34-47435; File No. SR-NASD-2002-168) to compliance programs of investment companies and investment advisers (SEC 17 CFR Parts 270 and 275 [Release Nos. IC-25925, IA-2107; File No. S7-03-03] RIN 3235-AI77).