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NASD Warns Brokerage Firms to Stop Cold Calling in Great Britain
The Financial Services Authority (FSA) in the United Kingdom has detected an increase in the frequency of customer solicitation, or cold calls, by NASD member brokerage firms. In response the FSA has requested the NASD to remind brokerage firms of their obligations.
The NASD states that applicable rules generally prohibit cold calling. No person shall make an unsolicited call (that is, without an express invitation) in an attempt to make an investment agreement. This restriction applies to brokerage firms even though their cold call efforts may comply with the NASD's rules.
The only two exemptions are for existing customers and "non-private customers", such as business investors, government or public authorities, corporations or partnerships with substantial assets and trustees of trusts holding substantial assets.
Source: NASD Notice to Members 98-91 (November 20, 1998)
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