NASD Proposes Changes to Rule 2710 on Treating Securities as Underwriting Compensation

The NASD has had a rule in place governing underwriting compensation, but with the expanded pace and types of services available, defining what falls into this category has proven problematic. Thus the NASD has proposed a new rule, the roots of which are discussed in this article. Also this proposed Rule 2710 is compared and contrasted with the old rule. There is also a very thorough discussion of safe harbors that might be relied on.