NU Online News Service, April 22, 2005, 12:44 p.m. EDT

The National Association of Securities Dealers, Washington, is cracking down on more types of sales contests.[@@]

NASD says it will be proposing a rule that will ban sales contests that award securities brokers cash based on sales of particular securities or types of securities.

The proposal would remove any cash incentive for securities brokers to sell specific securities or particular types of securities, but the proposal would not affect compensation based on a broker’s total sales of all types of securities, NASD says.

NASD already has banned contests that use cruises, concert tickets and other non-cash prizes to spur sales of particular securities or types of securities. That existing contest ban affects sellers of variable annuities as well sellers of mutual funds and other types of securities, NASD says.

NASD expects to publish the new proposal on its Web site in the next few days.