NASDR Wants Comments on Account Transfer Rule

The NASDR released for comment May 22 a proposed rule interpretation designed to prevent clients from getting caught in the middle of industry employment disputes (see June 2001 RR, Page 36). The notice to members explains that in granting a temporary restraining order against a broker, a court may also order the rep's new employer to reject account transfers from the former firm. In its notice, the

The NASDR released for comment May 22 a proposed rule interpretation designed to prevent clients from getting caught in the middle of industry employment disputes (see June 2001 RR, Page 36).

The notice to members explains that in granting a temporary restraining order against a broker, a court may also order the rep's new employer to reject account transfers from the former firm.

In its notice, the NASDR says it believes customers have a right to choose their brokers and firms, and that restricting transfers can deprive customers of service and access to their accounts.

The regulator is asking for comments by July 6. The proposal is Notice to Members 01-36 and can be viewed at www.nasdr.com/2610_2001.asp. Commenters can e-mail responses right from the Web site.

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