NASD Regulation announced on May 27, 2001,an extension to the deadline of the margin disclosure statement requirement for existing customers: For those non-institutional customers who were margin customers of the firm prior to June 4, 2001, members are required to provide the disclosure statement, or an abbreviated version of the statement, at the time of the next annual account statement to the customer, but no later than January 31, 2002. NASD Notice to Members 01-37 (June 2001).
For new customers (i.e., non-institutional customers opening margin accounts on or after June 4, 2001), the June 4 deadline continues to apply.
Notice 01-37 is available online at http://www.nasdr.com/2610_2001.asp#01-37
Copyright 2001, John M. Baker, Esq., Stradley, Ronon, Stevens & Young, LLP, 1220 19th Street, N.W., Suite 700, Washington, DC 20036 – (202) 822-9611- Fax (202) 822-0140 This article was originally posted to the FundLaw List, http://www.egroups.com/group/fundlaw. To subscribe to FundLaw, send a blank e-mail to email@example.com
Mark Astarita is a nationally recognized securities attorney, who represents investors, financial professionals and firms in securities litigation, arbitration and regulatory matters, including SEC and FINRA investigations and enforcement proceedings.
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