Advisories

NASD Prohibits Use Of Related Performance Information In Hedge Fund Sales Materials

October 2003

On October 2, 2003, NASD Inc. (the "NASD") issued a significant interpretive letter (the "Interpretation") addressing, among other things, the use by NASD members of "related performance information" in hedge fund sales materials in accordance with NASD Rule 2210. Rule 2210 sets forth general and specific standards of conduct regarding a member’s communications with the public and generally provides that all member communications must be fair, clear, balanced and not misleading. The Interpretation, addressed to the Securities Industry Association, is effective immediately.