Publications

NASD Issues Member Alert Regarding the Importance of Mutual Fund Dealer Agreements

Spring 2006
Pamela S. Poland
Mutual Funds Regulatory Updates - Spring 2006

In a Member Alert issued on November 22, 2005, the National Association of Securities Dealers, Inc. (the “NASD”) reminded members of the importance of conducting sales of mutual fund shares in accordance with the terms of the applicable dealer agreement between the principal underwriter of a mutual fund and a selling broker-dealer (a “Dealer Agreement”). The NASD also urged mutual fund underwriters and dealers to review their Dealer Agreements and assure they “adequately delineate the respective responsibilities of the parties in a manner reasonably designed to help ensure that the mutual fund sales and distribution process protects investors.”