Additionally, plaintiffs allege a cause of action for breach of third party beneficiary contracts against and in violation of the NASD rules of fair practice
by PLM Securities alone.
In the area of sales practice rules, the General Accounting Office's (GAO's) report in September 1990 recommended that the Congress amend the Securities Exchange Act to authorize a federal agency to adopt rules of fair practice
applicable to all government securities brokers and dealers, addressing, at a minimum, dealer markups and investor suitability requirements.
The NASD Corporate Finance Department has confirmed that the underwriter's claims based upon such anti-dilution provisions are in violation of the NASD Rules of Fair Practice
Additionally, the company will now pay a solicitation fee of $15 per $1,000 in principal amount of Secured Notes to any broker or dealer in securities which is a member of any national securities exchange or of the NASD, foreign brokers or dealers which agree to conform to the NASD's Rules of Fair Practice
in soliciting tenders outside the United States or any bank or trust company for soliciting and obtaining the tender of Secured Notes accepted in the tender offer.
As proposed, the rules would amend the NASD Rules of Fair Practice
to impose special restrictions on bank brokerage operations.
The committee is responsible for disciplining NASD member firms and associated individuals who violate the NASD Rules of Fair Practice
13 /PRNewswire/ -- The Bank Securities Association (BSA) is hosting a half-day planning and strategy session focusing on the National Association of Securities Dealers (NASD)'s newly proposed Rules of Fair Practice
governing member broker/dealers' securities operations conducted in banks or other financial institutions.
In addition to these conditions, the subsidiaries will be subject to substantial regulatory requirements under the federal securities laws, applicable state laws and the Rules of Fair Practice
of the National Association of Securities Dealers, Inc.
In this disciplinary action, the NASD alleged violations of several of its Rules of Fair Practice
(RFP), including Section 18, which prohibits the use of any manipulative, deceptive or other fraudulent device in the purchase or sale of any security.
As a result of this violative activity, Monarch, Leo Eisenberg, and Michael Eisenberg were found to have violated the anti-fraud provisions of the federal securities laws and Article III, Section 18 of the Association's Rules of Fair Practice
The NASD found that Bryant and Phillips violated, among other provisions, Section 10(b) of the Securities and Exchange Act of 1934 and rule 10b-5 thereunder, and Article III, Section 18, of the NASD's Rules of Fair Practice