SIA Submits Comments to the NASD on Non-Cash Compensation Rules
Published on:
August 5, 2005
The Self-Regulatory and Supervisory Practices Committee of the Securities Industry Association (SIA)*provides comments to the National Association of Securities Dealers, Inc. (NASD)on non-cash compensation rules, Notice to Members 05-40. The proposed rule changes would expand the prohibitions of non-cash compensation to the sale and distribution of any security; and prohibit all product specific sales contests.
The Committee believes the proposal needs additional clarification and modification to ensure the regulation is not inadvertently applied to legitimate business conduct.
*SIFMA is the product of a merger between the Securities Industry Association (SIA) and The Bond Market Association (TBMA) in 2006.