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									                                              Index

ACCOUNT AGREEMENTS                                   ADVERTISING AND SALES LITERATURE
 Customer Account Agreements (this index)               —Cont’d
                                                      Content standards for communications (Rule
ADDRESSES                                                  2210(d))—Cont’d
 Name/Address Matters (this index)                      FINRA name in communications (IM-2210-4),
                                                              4:19
ADVERTISING AND SALES LITERATURE                        guidelines to ensure public communications do
 Generally, 4:1-4:69                                          not mislead (IM-2210-1), 4:11
 Approval, Žling, and recordkeeping requirements        hedge fund advertising, 4:15, 4:16
      (Rule 2210)                                       index comparisons in fund sales material, 4:26
   generally, 4:44                                      institutional sales material and correspondence
   designing eective advertising review                      (Rule 2211(d)), 4:37
         program, 4:47                                  interactive calculators, 4:18
   FINRA Žling requirements/review procedure            investing CD proceeds into securities products
         (Rule 2210(c)), 4:48-4:51                            (NTM 93-87), 4:13
   intermediary Žrms, exception to requirement          investment analysis tools (IM-2210-6), 4:25
         for principal approval (Rule
         2210(d)(1)(D)), 4:46                           mutual fund performance ranking guidelines
                                                              (IM-2210-3), 4:23
   principal approval (Rule 2210(b)(1)(A)), 4:45-
         4:47                                           presentations checklist, misleading, 4:21
   recordkeeping requirements (Rule 2210(b)(2)),        recent mutual fund performance advertising
         4:52                                                 (NTM 00-21), 4:12
   review program, designing for eectiveness,          replacing CD with bond fund (NTM 91-74),
         4:47                                                 4:14
 Categories of communications with public (Rules        Rule 2210(d)(2) standards for advertising and
      2210)                                                   sales literature, 4:22-4:28
   generally, 4:2-4:8                                   ‘‘stretch’’ IRA communications, 4:17
   advertisements (Rule 2210(a)(1)), 4:3                unit investment trust communications, 4:20
   correspondence (Rule 2210(a)(3)), 4:5              Electronic Communications (this index)
   ‘‘independently prepared reprint ‘‘ (Rule          Fee, expense, and standardized performance
         2210(a)(6)), 4:8                                  disclosure (Rule 2210(d)(3))
   institutional sales material (Rule 2210(a)(4)),      generally, 4:29
         4:6                                            additional guidance on fees and expenses,
   public appearances (Rule 2210(a)(5)), 4:7                  4:30, 4:31
   sales literature (Rule 2210(a)(2)), 4:4              advertising exchange-traded fund performance,
                                                              4:32
 Closed-end funds, 14:9
                                                        newly organized funds, related performance
 Content standards for communications (Rule                   information, 4:31
      2210(d))                                          performance graphs, use in fund advertise-
   generally, 4:9                                             ments, 4:34
   all communications, standards applicable (Rule       sudden performance changes, guidance, 4:33
         2210(d)(1)), 4:10-4:21                         variable annuity advertisements, use of
   bond mutual fund volatility ratings (IM-2210-              ‘‘predated’’ performance, 4:35
         5), 4:24                                       yield disclosures (NTM 86-41), 4:36
   business cards and letterhead, 4:27                Financial institutions, sales through (Rule
   disclosure of fee, expense, and standardized            2350(c)(4)(B)), 9:8, 9:9
         performance (Rule 2210(d)(3)), 4:29          FINRA advertising issues, municipal fund
   enforcement actions involving hedge fund                securities/Section 529 plans (NTM 03-17),
         advertising, 4:16                                 11:4
   Žnancial institution sales materials (Rule         FINRA Žling requirements/review procedure
         2350(c)(4)(B)), 4:28                              (Rule 2210(c)), 4:48-4:51

                                                                                               Index-1
                                                                     Mutual Funds Sales Practices


ADVERTISING AND SALES LITERATURE                       BROKERS—Cont’d
   —Cont’d                                              Fee-based brokerage accounts—Cont’d
 FINRA name in communications (IM-2210-4),                fee-based compensation arrangements (NTM
      4:19                                                      03-68), 7:16
 Municipal fund securities/Section 529 plans,             SEC Rule 202(a)(11)-1, 7:15
      FINRA advertising issues (NTM 03-17),             Financial institutions, networking and brokerage
      11:4                                                   arrangements (Rule 2350(c)(2)), 9:5
 Oral communications                                    Investment company rule, directed brokerage
   generally, 4:54                                           arrangements (Rule 2830(k)), 5:32
   telemarketing/"cold calling’’ (Rule 2212),           Registration of sales personnel, broker check
        4:55, 4:56                                           disclosure (IM-8310-2), 2:60
   United Kingdom, ‘‘cold calling’’ to (NTM             Remote oce supervision, unregistered broker-
        98-91), 4:56                                         dealer status, 15:48
 Public appearances (Rule 2210(a)(5)), 4:7              Supervision
 SEC advertising and other requirements (Rules            broker-dealer compliance programs (Rule
      482, 34b-1, and 156), 4:38-4:43                           3130), 15:36-15:37
 Supervision, 15:29                                       remote oce, unregistered broker-dealer
                                                                status, 15:48
AML COMPLIANCE OFFICER
 Customer account agreements (Rule 3011(d)),           BUSINESS CARDS AND LETTERHEAD
     3:40                                               Advertising and sales literature, content standards
                                                            for communications (Rule 2210(d)), 4:27
ANTIMONEY LAUNDERING
 Customer Account Agreements (this index)              CHARGES
                                                        Sales Charges (this index)
APPEARANCES IN PUBLIC
 Advertising and sales literature (Rule                CLOSED-END FUNDS
     2210(a)(5)), 4:7                                   Generally, 14:1-14:11
ASSET-BASED SALES CHARGES                               Advertising and sales literature, 14:9, 14:10
  Limits (Rule 2830(d)(1)), 6:4, 6:5                    Auction rate securities, partial redemptions (RN
                                                              08-21), 14:11
  1940 Act Rule 12b-1, 6:25-6:27
                                                        Distribution of shares (1940 Act sections 23(a)
AUCTION RATE SECURITIES                                       and (b)), 14:6, 14:7
 Closed-end funds, partial redemptions (RN              Exemption for interval funds (NTM 00-53),
     08-21), 14:11                                            initial public oering of shares (Rule 5510),
                                                              14:5
BOND MUTUAL FUND VOLATILITY                             Initial public oering of shares (Rule 5510), 14:4,
   RATINGS                                                    14:5
 Advertising and sales literature, content standards    Partial redemptions of auction rate securities (RN
     (Rule 2210(d)), IM-2210-5), 4:24                         08-21), 14:11
BONDS AND BOND FUNDS SALES                              Performance advertisements, 14:10
 Advertising and sales literature, content standards    Registration of sales personnel, 14:2
   bond mutual fund volatility ratings (IM-2210-        Repurchase of shares (1940 Act section 23),
        5), 4:24                                              14:6, 14:8
   replacing CD with bond fund (NTM 91-74),             Sales personnel registration, 14:2
        4:14                                            Underwriting, 14:3
 Sales activities obligations (NTM 04-30), 5:40
                                                       ‘‘COLD CALLING’’
BRANCH OFFICES                                           Advertising, oral communications, 4:55, 4:56
 DeŽnition/exclusions (Rule 3010(g)(2)), 15:8
 Remote oce. Supervision (this index)                 COMMITTEES
                                                        FINRA regulatory scheme, 1:3
BROKERS
 Advertising and sales literature, broker ‘‘taping’’   COMPENSATION
     rule (Rule 3010(b)(2)), 4:57                       Generally, 7:1-7:35
 Customer account agreements, public disclosure         Borrowing from customers (Rule 2370), 7:33
     program (BrokerCheck) (Rule 2280), 3:46            Charges for services (Rule 2430), 7:35
 Fee-based brokerage accounts                           Fee-based brokerage accounts
   generally, 7:14                                        generally, 7:14

Index-2
Index


COMPENSATION—Cont’d                                  COMPENSATION—Cont’d
 Fee-based brokerage accounts—Cont’d                  Outside activities of representatives (Rules 3030
   fee-based compensation arrangements (NTM                and 3040)—Cont’d
         03-68), 7:16                                   advisory activities of RR/IAs (NTMs 96-33
   SEC Rule 202(a)(11)-1, 7:15                                and 94-44), 7:26
 Finder's fees (Rule 2420), 7:30                        business activities (Rule 3030), 7:24
 Guarantees/sharing in customer accounts (Rule          private securities transactions (Rule 3040),
      2330(e) and (f)), 7:32                                  7:25, 7:26
 Inuencing or rewarding employees of others          Recordkeeping
      (Rule 3220)                                       inuencing or rewarding employees of others
   additional guidance on business entertainment              (Rule 3220(c)), 7:18
         exception (Proposed IM-3060), 7:22             limitations (Rule 2830(l)(3)), 7:5
   business entertainment exception, 7:21, 7:22       Retired representatives (IM-2420-2), 7:28
   de minimis and promotional items exception,        Rewards. Inuencing or rewarding employees of
         7:20                                              others (Rule 3220), above
   exception for personal gifts, promotional          Securities accounts at other Žrms (Rule 3050),
         items, and business entertainment, 7:19-          7:29
         7:22                                         Solicitation of charitable gifts by customers
   general prohibition (Rule 3220(a)), 7:17, 7:18          (NTM 06-21), 7:34
   personal gifts exception, 7:19                     Solicitor's fees, 7:31
   promotional items exception, 7:20
                                                     COMPLAINTS
   recordkeeping (Rule 3220(c)), 7:18
                                                      Customer account agreements, information about
 Limitations (Rule 2830(l))                                complaints (Rule 3110(d)), 3:7
   generally, 7:2                                     Practical guidance for handling, 2:59
   cash compensation limits (Rule 2830(l)(4)),        Reporting by Žrm (Rule 3070), 2:58
         7:6
   ‘‘contests’’ (Rule 2820(g)(4)(D)), 10:45          CONTINUING EDUCATION
   ‘‘contests’’ (Rule 2830(l)(5)(D)), 7:11, 7:12      Sales Personnel (this index)
   contributions to noncash arrangements (Rule       CUSTOMER ACCOUNT AGREEMENTS
         2830(l)(5)(E)), 7:13                         Generally, 3:1-3:51
   education meetings (Rule 2830(l)(5)(C)), 7:10      Account information (Rule 3110(c) and 1934 Act
   entertainment (Rule 2830(l)(5)(B)), 7:9                 Rule 17a-3)
   examples of noncash compensation arrange-            generally, 3:3-3:7
         ments (NTM 95-56), 7:12                        additional information for certain accounts
   general limits (Rule 2830(l)(1)), 7:3                      (Rule 3110(c)(2)), 3:5
   gifts (Rule 2830(l)(5)(A)), 7:8                      all accounts, required information (Rule
   meetings for training and education (Rule                  3110(c)(1) and 2342), 3:4
         2830(l)(5)(C)), 7:10                           certain accounts, required information (Rule
   noncash compensation limits (Rule                          3110(c)(2)), 3:5
         2830(l)(5)), 7:7-7:13                          complaints, information about (Rule 3110(d)),
   noncash ‘‘contests’’ (Rule 2820(g)(4)(D)),                 3:7
         10:45                                          every account, required information (Rule
   noncash ‘‘contests’’ (Rule 2830(l)(5)(D)),                 3110(c)(1) and 2342), 3:4
         7:11, 7:12                                     records for persons who receive recommenda-
   occasional entertainment (Rule 2830(l)(5)(B)),             tions (1934 Act Rule 17a-3(a)(17)), 3:6
         7:9                                          Account requirements, generally, 3:2
   receipt of securities, prohibition (Rule           Account statements (Rule 2340)
         2830(l)(2)), 7:4                               generally, 3:21
   recordkeeping (Rule 2830(l)(3)), 7:5                 exception for DVP/RVP accounts (Rule
   training (Rule 2830(l)(5)(C)), 7:10                        2340(b)), 3:22
   variable insurance products (Rule 2820(g)),          use of EAI and EY (RN 08-77), 3:23
         10:37-10:46                                  Addresses. Name/address matters, below
 Loans to customers (Rule 2370), 7:33                 Advertising and sales literature, approval, Žling,
 Outside activities of representatives (Rules 3030         and recordkeeping requirements (Rule
      and 3040)                                            2210), 4:46
   generally, 7:23                                    Advisory account agreements, 3:12

                                                                                                Index-3
                                                                   Mutual Funds Sales Practices


CUSTOMER ACCOUNT AGREEMENTS                          CUSTOMER ACCOUNT AGREEMENTS
   —Cont’d                                              —Cont’d
 Antimoney laundering compliance programs             Predispute arbitration agreements (Rule 3110(f))
      (Rule 3011)                                       generally, 3:17
   generally, 3:30                                      limits (Rule 3110(f) and NTMs 05-09, 95-85,
   AML Compliance Ocer (Rule 3011(d)), 3:40                  and 95-16), 3:18
   customer identiŽcation, 3:31-3:36                  Privacy of customer information
   government lists, comparison to, 3:33                generally, 3:47-3:50
   independent testing function (Rule 3011(c)),         identity theft (RN 08-69), 3:50
         3:42                                           Regulation S-P, 3:48
   monitoring accounts for suspicious activity,         safeguarding customer information (NTM
         3:37-3:39                                            05-49), 3:49
   notice, provision to customer, 3:34                Public disclosure program (BrokerCheck) (Rule
   ongoing AML training program (Rule                      2280), 3:46
         3011(e)), 3:41                               Recordkeeping
   recordkeeping, 3:35                                  advertising and sales literature, approval, Žl-
   reliance on another Žnancial institution, 3:36             ing, and recordkeeping requirements
   reporting suspicious activity, 3:37-3:39                   (Rule 2210), 4:46
   suggested ‘‘red ags’’ (NTM 02-21), 3:38             antimoney laundering compliance programs
   suspicious activity reports (SARs), 3:39                   (Rule 3011), 3:35
   veriŽcation of customer identity, 3:32             SIPC coverage, 3:51
 ConŽrmations (1934 Act Rule 10b-10 and Rule          Training, ongoing AML training program (Rule
      2230)                                                3011(e)), 3:41
   generally, 3:19                                    Transfers (Rule 11870)
   disclosure of deferred sales charges (Rule           generally, 3:24
         2830(n)), 3:20                                 interference with account transfers (Rule
 ‘‘Designated investment adviser’’ (Rule 2260(f)),            2140), 3:26
      use when forwarding of proxies and                money market bulk exchanges exception (Rule
      shareholder reports, 3:45                               2510(d) NTMs 04-72 and 02-57), 3:28
 Disclosure of credit terms (1934 Act Rule 10b-         negative response letters (NTMs 04-72 and
      16), 3:29                                               02-57), 3:27, 3:28
 Discretionary account information (Rule 2510           portability of mutual fund shares, 3:25
      and 3110(c)(3))
   generally, 3:8                                    CUSTOMER COMPLAINTS
   Advisers Act considerations for Žrms manag-        Customer account agreements, information about
         ing discretionary accounts, 3:11                  complaints (Rule 3110(d)), 3:7
   approval of transactions/excessive transactions    Practical guidance for handling, 2:59
         (Rule 2510(a) and (c)), 3:10                 Reporting by Žrm (Rule 3070), 2:58
   required documentation (Rules 2510(b) and
         3110(c)(3)), 3:9                            DEFINITIONS
 Exceptions                                           Branch oce, 15:8
   account statements, exception for DVP/RVP          Producing manager, 15:35
         accounts (Rule 2340(b)), 3:22                Recommendation, 5:11
   account statements (Rule 2340), 3:22
   transfers, money market bulk exchanges            DESIGNATED INVESTMENT ADVISER
         exception (Rule 2510(d) NTMs 04-72 and       Customer account agreements (Rule 2260(f)),
         02-57), 3:28                                     3:45
   transfers (Rule 11870), 3:28
                                                     DISCIPLINARY MATTERS
 Fidelity insurance coverage (Rule 3020), 3:43
                                                       Sales personnel registration, Žrm's reporting of
 Forwarding of proxies and shareholder reports
                                                            disciplinary matters (Rule 3070), 2:58, 2:59
      (Rule 2260), 3:44, 3:45
 Name/address matters                                DISCOUNTS
   generally, 3:13                                     Sales charges (NTM 04-26), 6:33
   address changes/use of P.O. boxes, 3:16             UIT sales charges (NTM 04-26), 6:33
   changes in account name or designation (Rule
         3110(j)), 3:14                              DISCRETIONARY INFORMATION
   holding customer mail (Rule 3110(i)), 3:15          Customer Account Agreements (this index)

Index-4
Index


‘‘DISQUALIFIED’’ PERSONS                             EMPLOYEES RETIREMENT INCOME
  Sales personnel, background investigations (Rule      SECURITY ACT (ERISA)—Cont’d
       3010(e)), 2:7                                  Transactions in fund shares (PTCE 84-24), 12:2
ELECTRONIC COMMUNICATIONS                            ENTERTAINMENT
 Generally, 4:58                                      Compensation limitations (Rule 2830(l)(5)(B)),
 Blogs, 4:63                                               7:9
 Bulletin boards, 4:63                                Inuencing or rewarding employees of others
 Chat rooms, 4:63                                          (Rule 3220)
 Dealer-use-only materials, 4:69                        additional guidance on business entertainment
 E-mails, 4:62                                               exception (Proposed IM-3060), 7:22
 Instant messaging, 4:62, 4:66                          business entertainment exception, 7:21, 7:22
 Internal -use-only materials, 4:69                   Remote oce supervision (Rule 3220), 15:46
 Internet compliance issues, 4:61-4:64                Variable insurance products, limits on occasional
 Representatives, guidance, 4:59-4:64                      entertainment as noncash compensation
                                                           (Rule 2820(g)(4)(B)), 10:43
 Review and supervision (NTM 07-59)
    generally, 4:66, 4:68, 15:51                     EXAMINATIONS AND INSPECTIONS
    combination of lexicon-based and random           FINRA examinations and inspections. Financial
         reviews, 15:59                                    Industry Regulatory Authority (FINRA)
    correspondence review methods, 15:56-15:59             (this index)
    documentation of correspondence review,           Sales Personnel (this index)
         15:61                                        SEC examinations. Securities and Exchange
    external communications, 15:53                         Commission (SEC) (this index)
    frequency of correspondence review, 15:60         Supervision, internal inspections (Rule 3010(c)),
    identiŽcation of responsible review person,            15:17-15:20
         15:55                                        Unregistered oces, inspections, 15:43
    internal communications, 15:54                   EXCEPTIONS
    lexicon-based reviews, 15:57
                                                      Advertising and sales literature of intermediary
    new product review (NTM 05-26), 15:62                 Žrms, exception to requirement for principal
    random reviews, 15:58                                 approval (Rule 2210(d)(1)(D)), 4:46
    review, generally (RN 07-59), 4:68, 15:51         Business entertainment exception, 7:21, 7:22
    supervision, generally, 4:66, 15:51               Compensation, exception for personal gifts,
    written policies and procedures, 15:52                promotional items, and business entertain-
 Rules, compliance with applicable rules, 4:60            ment, 7:19-7:22
 Suitability and online communications (NTM           Customer Account Agreements (this index)
       01-23), 4:67                                   Money market bulk exchanges exception (NTM
 Supervising and recordkeeping for instant mes-           02-57), 3:28
       saging (NTM 03-33), 4:66                       Supervision, limited size and resources exception
 Supervision. Review and supervision, above               (Rule 3010(c)(3)), 15:20
 Supervision of electronic communications (RN
       07-59), 4:68                                  EXCHANGE OFFERS
 Third-party hyperlinked materials, 4:65              Sales charges (1940 Act section 11), 6:32
 Web sites, 4:64                                     EXCHANGE-TRADED FUNDS
                                                      Advertising performance, 4:32
E-MAILS
  Electronic communications, 4:62                    EXEMPTIVE REQUESTS
                                                      FINRA regulatory scheme, 1:8
EMPLOYEES RETIREMENT INCOME
    SECURITY ACT (ERISA)                             FEES
 Generally, 12:1-12:5                                  Advertising and sales literature content standards,
 Alliance programs, in-house plans for investing           disclosure of fee (Rule 2210(d)(3)), 4:29-
      in funds (PTCE 77-3), 12:5                           4:31
 In-house plans for investing in funds (PTCE           Brokers, fee-based compensation arrangements
      77-3), 12:4, 12:5                                    (NTM 03-68), 7:16
 Investing plan assets in aliated mutual funds        Finder's fees (Rule 2420), 7:30
      (PTCE 77-4), 12:3                                FINRA Žling requirements/review procedure
 Regulatory requirements, 1:17                             (Rule 2210(c)), Žling fees, 4:51

                                                                                                  Index-5
                                                                  Mutual Funds Sales Practices


FEES—Cont’d                                         FINANCIAL INSTITUTIONS
  Redemption fees on short-term trades, 5:46          Advertising and sales literature, content standards
  Sales personnel examinations (Rule 1070), 2:50           for Žnancial institution sales materials (Rule
  Service fees                                             2350(c)(4)(B)), 4:28
    SEC requirements (1940 Act section 22(d)),        ATM machines, selling funds on bank premises
          sales or redemptions, 6:22                       (Rule 2350(c)(1)), 9:4
    share charge limits (Rule 2830(d)(5)), 6:7        Kiosks, selling funds on bank premises (Rule
  Solicitor's fees, 7:31                                   2350(c)(1)), 9:3
                                                      Networking and brokerage arrangements (Rule
  Transaction or service fees on sales or redemp-
                                                           2350(c)(2)), 9:5
       tions (1940 Act), 6:22
                                                      Premises of bank as site of sale (Rule
FINANCIAL INDUSTRY REGULATORY                              2350(c)(1)), 9:2-9:4
     AUTHORITY (FINRA)                                Regulatory requirements, 1:16
  Advertising and sales literature, FINRA Žling       Required customer disclosures when selling
        requirements/review procedure (Rule                funds
        2210(c))                                        generally, 9:6
     generally, 4:48-4:51                               account statements (Rule 2350(c)(4)(A)), 9:11
     Žling fees, 4:51                                   advertisements (Rule 2350(c)(4)(B)), 9:8, 9:9
     materials not required to be Žled (Rule            conŽrmations (Rule 2350(c)(4)(A)), 9:11
           2210(c)(8)), 4:49                            fund prospectuses, 9:10
     voluntary Žlings, 4:50                             logos of bank and Žnancial institution (NTM
  Committees, 1:3                                             95-49), 9:13
  Examinations and inspections                          opening account (Rule 2350(c)(3)), 9:7
     generally, 16:1, 16:2                              prospectuses, 9:10
                                                        sales literature (Rule 2350(c)(4)(B)), 9:8, 9:9
     cycle examination process, 16:3
                                                        sales materials, 9:12
     improving examination results, 16:4
                                                        shorter format disclosures (Rule
  Exemptive requests, 1:8                                     2350(c)(4)(C)), 9:9
  Interpretative letters (NTM 97-36), 1:7               use of bank and Žnancial institution logos
  Investigations and enforcement proceedings (RN              (NTM 95-49), 9:13
        09-17)                                        Selling funds through, generally, 9:1-9:13
     generally, 16:8
     cooperative guidance (RN 08-70), 16:9          GRAPHS
  Letters, 1:7                                       Funds advertisements, use of performance
                                                         graphs, 4:34
  Municipal fund securities/Section 529 plans,
        FINRA advertising issues (NTM 03-17),       HEDGE FUNDS
        11:4                                         Advertising and sales literature, content standards
  Notices, 1:6                                           for communications (Rule 2210(d)), 4:15,
  NTM 97-36, 1:7                                         4:16
  Regulatory scheme                                 IDENTITY THEFT
     generally, 1:1-1:9                               Customer account agreements (RN 08-69), 3:50
     committees, 1:3                                IM-1000-2
     exemptive requests, 1:8                          Sales personnel, reinstatement of registration
     guidance, 1:4-1:9                                     inactive due to military service, 2:52
     interpretative letters (NTM 97-36), 1:7
                                                    IM-2210-1
     letters, 1:7
                                                      Advertising and sales literature, guidelines to
     notices, 1:6                                         ensure public communications do not
     NTM 97-36, 1:7                                       mislead, 4:11
     rules, 1:5                                     IM-2210-2
     sources of guidance, 1:4-1:9                     Variable insurance products, general guidelines
     standing committees, 1:3                              for communications, 10:8-10:10
  Requests, 1:8
                                                    IM-2210-3
  Rules, 1:5                                          Advertising and sales literature, content standards
  Sources of regulatory guidance, 1:4-1:9                 for mutual fund performance ranking
  Standing committees, 1:3                                guidelines, 4:23

Index-6
Index


IM-2210-4                                                 INSTITUTIONAL CUSTOMERS—Cont’d
  Advertising and sales literature, content standards       Use of Žrm name (Rule 2211(d)(2)), 13:4
      for use of FINRA name in communications,
                                                          INSURANCE COVERAGE
      4:19
                                                            Customer account agreements, Ždelity insurance
IM-2210-5                                                       coverage (Rule 3020), 3:43
  Advertising and sales literature, content standards
                                                          INSURANCE PRODUCTS
      for bond mutual fund volatility ratings, 4:24
                                                            Variable Insurance Products (this index)
IM-2210-6
                                                          INTERACTIVE CALCULATORS
  Advertising and sales literature, content standards
      for investment analysis tools, 4:25                   Advertising and sales literature, content standards
                                                                for communications (Rule 2210(d)), 4:18
IM-2310-2
                                                          INTERMEDIARY FIRMS
  Sales activities, fair dealing with customers, 5:5
                                                            Advertising and sales literature, exception to
IM-2310-3                                                       requirement for principal approval (Rule
  Sales activities, institutional customers suitability         2210(d)(1)(D)), 4:46
       obligations, 5:17, 13:2
                                                          INTERNAL COMMUNICATIONS
IM-2420-2                                                   Review and supervision (NTM 07-59), 15:54
  Compensation of retired representatives, 7:28
                                                          INTERNAL CONTROLS
IM-2830-1                                                   Sales activities, suitability of recommendations to
  Breakpoint sales charges, quantity discounts,                  customers (Rules 2310), 5:12
      6:14-6:17                                             Supervision, internal inspections (Rule 3010(c)),
                                                                 15:17-15:21
IM-2830-2
  Sales activities, maintaining public oering price      INTERNAL-USE-ONLY
       in sales by underwriters, 5:24                       Electronic communications, 4:69
IM-3060 (PROPOSED)                                        INTERNET
  Additional guidance on business entertainment             Electronic Communications (this index)
      exception, 7:22
                                                          INTERPRETATIVE LETTERS (NTM 97-36)
IM-8310-2                                                   FINRA regulatory scheme, 1:7
  Sales personnel registration, broker check
       disclosure, 2:60                                   INVESTIGATIONS AND ENFORCEMENT
                                                              PROCEEDINGS
‘‘INELIGIBLE’’ PERSONS                                      FINRA. Financial Industry Regulatory
   Sales personnel, background investigations (Rule             Authority (FINRA) (this index)
        3010(e)), 2:8                                       SEC. Securities and Exchange Commission
INITIAL PUBLIC OFFERING OF SHARES                               (SEC) (this index)
  Closed-end funds (Rule 5510), 14:4, 14:5                INVESTMENT ADVISERS ACT OF 1940
INSPECTIONS                                                 SEC regulatory scheme, 1:14
  Examinations and Inspections (this index)               INVESTMENT ANALYSIS TOOLS
INSTANT MESSAGING                                           Advertising and sales literature, content standards
  Electronic communications, 4:62, 4:66                         for communications (Rule 2210(d)), 4:25

INSTITUTIONAL CUSTOMERS                                   INVESTMENT COMPANY ACT OF 1940
                                                              (1940 ACT)
  Generally, 13:1-13:4
  Categories of communications with public,                 Closed-end funds, distribution/repurchase of
       institutional sales material (Rule                        shares (sections 23(a) and (b)), 14:6-14:8
       2210(a)(4)), 4:6                                     Exchange oers, sales charges (section 11), 6:32
  Content standards for communications,                     Sales charges
       institutional sales material and correspon-            asset-based sales charges (Rule 12b-1), 6:25-
       dence (Rule 2211(d)), 4:37                                  6:27
  Sales material and correspondence (Rule 2211),              deferred sales loads, 6:23, 6:24
       4:37, 13:3, 13:4                                       exchange oers (section 11), 6:32
  Suitability obligations (IM-2310-3), 13:2                   mutual fund supermarkets, 6:26

                                                                                                       Index-7
                                                                     Mutual Funds Sales Practices


INVESTMENT COMPANY ACT OF 1940                         MSRB RULES
    (1940 ACT)—Cont’d                                   Municipal fund securities/Section 529 plans, 11:2
  Sales charges—Cont’d                                  Regulatory requirements, 1:15
    prospectus disclosure about sales charges (Item
          7 of Form N-1A), 6:29                        MULTICLASS FUNDS
    revenue sharing, 6:28                               Suitability issues, recommendations to customers
    Rule 6c-10 and exemptive relief, 6:24                    (NTMs 95-80 and 94-16), 5:15
    Rule 12b-1, generally, 6:25                        MUNICIPAL FUND SECURITIES/SECTION
    Rule 12b-1 rebates, 6:27                              529 PLANS
    scheduled variations in sales loads (Rule 22d-      Generally, 11:1-11:6
          1), 6:21                                      Enforcement activities, 11:6
    SEC requirements (section 22(d)), 6:20-6:29         FINRA advertising issues (NTM 03-17), 11:4
    transaction or service fees on sales or redemp-     MSRB rules, 11:2
          tions, 6:22                                   Registration of sales personnel, 11:3
  Sales personnel background investigations,            Sales personnel registration, 11:3
       ‘‘ineligible’’ persons (section 9), 2:8          SIPC membership/Ždelity bond requirements,
  SEC regulatory scheme, 1:12                                11:5
  SEC sales literature requirements (Rule 34b-1),
       4:41                                            MUTUAL FUND PERFORMANCE RANKING
                                                          GUIDELINES
  Variable insurance products, status under 1940
       Act, 10:5                                        Advertising and sales literature, content standards
                                                            for communications (Rule 2210(d)), 4:23
‘‘KNOW-YOUR-CUSTOMER’’
                                                       NAME/ADDRESS MATTERS
    REQUIREMENTS
                                                        Customer Account Agreements (this index)
  No-load funds, 8:2
                                                        Financial institutions, use of logos when selling
  Sales activities, 5:6                                       funds (NTM 95-49), 9:13
LATE TRADING/MARKET TIMING                              Institutional customers, use of Žrm name in sales
   TRANSACTIONS                                               material and correspondence (Rule
 Sales activities (NTM 03-50), 5:45, 5:46                     2211(d)(2)), 13:4

LETTERHEAD                                             NEWLY ORGANIZED FUNDS
 Advertising and sales literature, content standards    Advertising and sales literature, related perfor-
     for communications (Rule 2210(d)), 4:27                mance information, 4:31

LETTERS AND CORRESPONDENCE                             1933 ACT
 Advertising and sales literature, categories of         SEC advertising and other requirements
       communications with public (Rule                    content standards for sales material (1933 Act
       2210(a)(3)), 4:5                                         Rule 156), 4:42
 Electronic correspondence review and supervi-             performance advertisements (1933 Act Rule
       sion (NTM 07-59), 15:56-15:61                            482), 4:39, 4:40
 FINRA regulatory scheme, interpretative letters,        SEC regulatory scheme, 1:13
       1:7                                               Variable insurance products, status under Act,
 Institutional customers, sales material and corre-           10:5
       spondence (Rule 2211), 4:37, 13:3, 13:4         1934 ACT
 Institutional sales material and correspondence
                                                         Customer account agreements
       (Rule 2211(d)), 4:37
                                                           account information (Rule 3110(c) and 1934
 Supervision, transaction and correspondence
                                                                Act Rule 17a-3), 3:3-3:7
       review (Rule 3010(d)), 15:22-15:27
                                                           conŽrmations (Rule 2230 and 1934 Act Rule
MEETINGS                                                        10b-10), 3:19, 3:20
 Compensation limitations, meetings for training           disclosure of credit terms (1934 Act Rule 10b-
      and education (Rule 2830(l)(5)(C)), 7:10                  16), 3:29
 Supervision, annual compliance meetings (Rule           Sales activities
      3010(a)(7)), 15:11                                   extending margin for mutual fund shares (sec-
 Variable insurance products, meetings for train-               tion 11(d)), 5:48
      ing and education as noncash compensation            SEC point-of-sale disclosure proposal
      (Rule 2820(g)(4)(C)), 10:44                               (proposed Rule 15c2-3), 5:43

Index-8
Index


1934 ACT—Cont’d                                         NTM 88-50
  SEC examinations (section 17)                          Sales personnel, unregistered persons who
    generally, 16:1, 16:5                                     contact prospective customers, 2:27
    compliance alert letter, 16:7
    examination process, 16:6                           NTM 89-35
    process, 16:6                                        No-load funds, use of term ‘‘no load,’’ 8:3
  SEC regulatory scheme, 1:11                           NTM 90-2
1940 ACT                                                 Supervision, employing statutorily disqualiŽed
  Closed-end funds, distribution/repurchase of               persons, 15:63
       shares (sections 23(a) and (b)), 14:6-14:8       NTM 91-74
  Exchange oers, sales charges (section 11), 6:32
                                                         Advertising and sales literature, content standards
  Sales charges                                              for communications replacing CD with bond
    asset-based sales charges (Rule 12b-1), 6:25-            fund, 4:14
          6:27
    deferred sales loads, 6:23, 6:24                    NTM 93-87
    exchange oers (section 11), 6:32                    Advertising and sales literature, content standards
    mutual fund supermarkets, 6:26                           for investing CD proceeds into securities
    prospectus disclosure about sales charges (Item          products, 4:13
          7 of Form N-1A), 6:29
                                                        NTM 94-16
    revenue sharing, 6:28
    Rule 6c-10 and exemptive relief, 6:24                Multiclass funds, suitability issues in recom-
                                                              mendations to customers, 5:15
    Rule 12b-1, generally, 6:25
    Rule 12b-1 rebates, 6:27                             Sales practices obligations, generally, 5:38
    scheduled variations in sales loads (Rule 22d-       ‘‘Switching’’ or trading in fund shares, 5:44
          1), 6:21                                      NTM 94-44
    SEC requirements (section 22(d)), 6:20-6:29          Compensation, advisory activities of RR/IAs,
    transaction or service fees on sales or redemp-          7:26
          tions, 6:22
  Sales personnel background investigations,            NTM 95-16
       ‘‘ineligible’’ persons (section 9), 2:8           Customer account agreements, limitations to
  SEC regulatory scheme, 1:11, 1:12                          predispute arbitration agreements, 3:18
  SEC sales literature requirements (Rule 34b-1),
       4:41                                             NTM 95-49
  Variable insurance products, status under 1940         Logos of bank and Žnancial institution, required
       Act, 10:5                                             customer disclosures when selling funds,
                                                             9:13
NO-LOAD FUNDS
 Generally, 8:1-8:3                                     NTM 95-56
 ‘‘Know-your-customer’’ requirements (Rules              Compensation limitations, examples of noncash
      2310 and 2010), 8:2                                    compensation arrangements, 7:12
 Selling, generally, 8:1                                NTM 95-80
 Suitability/"know-your-customer’’ requirements
      (Rules 2310 and 2010), 8:2                         Multiclass funds, suitability issues, recommenda-
                                                              tions to customers, 5:15
 Use of term ‘‘no load’’ (Rule 2830(d)(4) and
      NTMs 98-107 and 89-35), 8:3                        Sales practices obligations, generally, 5:38
                                                         ‘‘Switching’’ or trading in fund shares, 5:44
NOTICES
 Customer notice, antimoney laundering compli-          NTM 95-85
     ance programs (Rule 3011), 3:34                     Customer account agreements, limitations to
 FINRA regulatory scheme, 1:6                                predispute arbitration agreements, 3:18
NTM 86-41                                               NTM 96-33
 Advertising and sales literature, yield disclosures,    Compensation, advisory activities of RR/IAs,
     4:36                                                    7:26
NTM 86-65                                               NTM 96-86
 Supervision of o-site representatives, 15:41-          Variable insurance products, additional suitability
     15:48                                                    factors, 10:24

                                                                                                    Index-9
                                                                     Mutual Funds Sales Practices


NTM 97-19                                              NTM 02-85 (SPECIAL)
 Sales personnel background investigations, his-        Sales charges, quantity discounts, breakpoint
      tory of issues, 2:6                                    sales, 6:14-6:17
 Supervision, heightened supervisory procedures,
      15:16                                            NTM 03-07
                                                        Sales activities, suitability of recommendations,
NTM 97-27                                                    hedge funds sales to retail customers, 5:16
 Selling variable insurance products, group vari-
      able contract sales practices, 10:28             NTM 03-17
                                                        FINRA advertising issues, municipal fund
NTM 97-36                                                   securities/Section 529 plans, 11:4
 FINRA interpretative letters, 1:7                      Municipal fund securities/Section 529 plans, 11:4
 FINRA regulatory scheme, 1:7
 Interpretative letters, FINRA regulatory scheme,      NTM 03-33
      1:7                                               Electronic communications, supervising and
 Regulatory scheme, FINRA interpretative letters,            recordkeeping for instant messaging, 4:66
      1:7                                              NTM 03-50
NTM 98-38                                               Sales activities, late trading/market timing
 Supervision, o-site representatives, 15:41-15:48           transactions, 5:45, 5:46
NTM 98-91                                              NTM 03-68
 Advertising and sales literature, ‘‘cold calling’’     Brokers, fee-based compensation arrangements,
     to United Kingdom, 4:56                                7:16
NTM 98-107                                             NTM 04-26
 No-load funds, use of term ‘‘no load,’’ 8:3            Sales charges, discounts in UIT sales charges,
NTM 99-35                                                    6:33
 Supervision of variable annuity sales, 10:47          NTM 04-30
NTM 99-92                                               Sales activities, obligations in bonds and bond
 Risk management practices, 15:65                            funds sales, 5:40

NTM 00-21                                              NTM 04-72
 Advertising and sales literature, content standards    Money market bulk exchanges exception,
     for recent mutual fund performance                     transfers, 3:28
     advertising, 4:12                                  Negative response letters, transfers, 3:27, 3:28
NTM 00-44                                              NTM 05-09
 Suitability reminder for variable life insurance,      Customer account agreements, limitations to
      10:26                                                 predispute arbitration agreements, 3:18
 Supervision of variable life insurance sales,
      10:48                                            NTM 05-26
                                                        Supervision, new product review, 15:62
NTM 00-53
 Closed-end funds, initial public oering of           NTM 05-29
     shares, exemption for interval funds, 14:5         Supervisory control system, guidance for test and
                                                            verify procedures, 15:33
NTM 01-23
 Electronic communications, suitability and online     NTM 05-48
      communications, 4:67                              Supervision, responsibility for third-party service
 Sales activities, suitability of recommendations to        providers, 15:64
      customers, online communications, 5:14
                                                       NTM 05-49
NTM 02-21                                               Safeguarding customer information, 3:49
 Customer account agreements, antimoney
     laundering compliance programs, suggested         NTM 05-50
     ‘‘red ags,’’ 3:38                                 Supervision of equity-indexed annuities sales,
                                                            10:49, 10:50
NTM 02-57
 Money market bulk exchanges exception, 3:28           NTM 05-93
 Transfers, negative response letters, 3:27, 3:28       Sales personnel qualiŽcation, Žngerprinting, 2:10

Index-10
Index


NTM 06-21                                               RECENT PERFORMANCE ADVERTISING
 Solicitation of charitable gifts by customers, 7:34     Advertising and sales literature, content standards
                                                             for communications (Rule 2210(d)), 4:12
NTM 06-23
 Multiple registered FINOPs, 2:34                       RECORDKEEPING
 Osite FINOPs, 2:34                                     Advertising and Sales Literature (this index)
 Part-time FINOPs, 2:34                                  Compensation (this index)
 Principal registrations, 2:34                           Customer Account Agreements (this index)
                                                         Electronic communications, supervising and
NTM 06-38
                                                              recordkeeping for instant messaging (NTM
 Selling variable insurance products, life settle-            03-33), 4:66
      ments sales to third parties, 10:29                Variable insurance products, compensation limi-
NTM 07-06                                                     tations (Rule 2820(g)(3)), 10:40
 Sales activities, recommendations by representa-       REFUND
      tives changing Žrms, 5:47
                                                         Sales charges, investment company rule (Rule
NTM 07-59                                                     2830(h)), 5:31
 Combination of lexicon-based and random
                                                        REGULATION S-P
      reviews, 15:59
 Correspondence review methods, 15:56-15:59              Customer account agreements, privacy of
                                                             customer information, 3:48
 Documentation of correspondence review, 15:61
 External communications, 15:53                         REGULATORY SCHEMES AND
 Frequency of correspondence review, 15:60                 REQUIREMENTS
 IdentiŽcation of responsible review person, 15:55       Bank regulatory requirements, 1:16
 Internal communications, 15:54                          ERISA, 1:17
 Lexicon-based reviews, 15:57                            FINRA regulatory scheme, 1:1-1:9
 New product review, 15:62                               MSRB rules, 1:15
 Random reviews, 4:68, 15:58                             SEC regulatory scheme, 1:10-1:14
 Review and supervision of electronic com-               State laws and regulations, 1:18
      munications, 4:66, 4:68, 15:51
 Written policies and procedures, 15:52                 REPORTS
PERFORMANCE ADVERTISEMENTS                               Antimoney laundering compliance programs
                                                              (Rule 3011), reporting suspicious activity,
  Advertising and sales literature, content standards         3:37-3:39
      for communications (Rule 2210(d), NTM
      00-21), 4:12                                       Customer account agreements, suspicious activity
                                                              reports (SARs), 3:39
  Closed-end funds, 14:10
                                                         Customer complaints, reporting by Žrm (Rule
  SEC advertising requirements (1933 Act Rule
                                                              3070), 2:58, 2:59
      482), 4:39, 4:40
                                                         Disciplinary matters, reporting by Žrm (Rule
PRIVACY OF CUSTOMER INFORMATION                               3070), 2:58, 2:59
  Customer Account Agreements (this index)               Forms U4 and U5, sales personnel registration
                                                              and reporting, 2:40-2:43
PROMOTIONAL ITEMS
                                                         Supervision, written inspection report (Rule
  Inuencing or rewarding employees of others,                3010(c)(2)), 15:19
      promotional items exception, 7:20
                                                        REPRINTS
PROMOTIONS
  Sales activities, commission discounts promo-          Advertising and sales literature, ‘‘independently
       tions (Rule 2010), 5:4                                prepared reprint ‘‘ (Rule 2210(a)(6)), 4:8

PUBLIC APPEARANCES                                      REQUESTS
  Advertising and sales literature (Rule                 FINRA regulatory scheme, 1:8
      2210(a)(5)), 4:7                                  RN 07-43
REBATES                                                  Sales to senior investors
 Sales charges, 1940 act                                    generally, 5:18
   Rule 12b-1 rebates, 6:27                                 communications, 5:20
 Sales charges, Rule 12b-1 rebates (1940 Act sec-           other issues, 5:21
      tion 22(d)), 6:27                                     recommendations, suitability, 5:19

                                                                                                   Index-11
                                                                     Mutual Funds Sales Practices


RN 07-59                                               RULE 202(a)(11)-1 OF SEC
 Review and supervision of electronic com-              Brokers, fee-based brokerage accounts, 7:15
      munications, 4:68, 15:51
                                                       RULE 482 OF 1933 ACT
RN 08-21                                                Advertising and sales literature, 4:38-4:40
 Closed-end funds, partial redemption of auction
      rate securities, 14:11                           RULE 1021
                                                        Parking or warehousing registrations (Rules 1021
RN 08-30                                                     and 1031), 2:45-2:47
 Sales activities, illiquid investments, 5:3            Sales personnel, principal registrations, 2:28-2:39
RN 08-69                                               RULE 1022(a)
 Customer account agreements, privacy of                Sales personnel, CCO registration as principal,
      customer information, 3:50                             2:38
RN 08-70                                               RULE 1031
 Cooperative guidance, FINRA investigations and         Parking or warehousing registrations (Rules 1021
      enforcement proceedings, 16:9                          and 1031), 2:45-2:47
RN 08-77                                                Reinstatement of lapsed registration (Rule
 Customer account statements, use of EAI and                 1031(c)), 2:51, 2:52
      EY, 3:23                                          Sales personnel, representative registrations,
                                                             2:19-2:27
RN 08-81
 Sales activities obligations, securities sold in      RULE 1060
      high-yield environment, 5:41                      Persons/activities not subject to registration, 2:26
RN 08-82                                               RULE 1070
 Sales activities obligations, selling cash alterna-    Fees, 2:50
      tives, 5:42                                       Sales personnel examinations, 2:11-2:16
RN 09-17                                               RULE 1120
 FINRA investigations and enforcement proceed-          Sales personnel continuing education program,
      ings, 16:8, 16:9                                       2:55-2:57
RULE 6c-10 OF 1940 ACT                                 RULE 2010
 Sales charges, 6:24                                    No-load funds, ‘‘know-your-customer’’ require-
RULE 10b-10 OF 1934 ACT                                      ments, 8:2
 Customer account agreements, conŽrmations,             Sales activities, commercial honor and principles
     3:19, 3:20                                              of trade, 5:2-5:4

RULE 10b-16 OF 1934 ACT                                RULE 2140
 Customer account agreements, disclosure of             Customer account agreements, interference with
     credit terms, 3:29                                     account transfers, 3:26
RULE 12b-1 OF 1940 ACT                                 RULE 2210
 Asset-based sales charges, 6:25-6:27                   Advertising and sales literature, 4:3, 4:44-4:51
 Variable insurance products, plans for underlying      Content standards for communications (Rule
      funds, 10:51                                            2210(d)), 4:9-4:37
                                                        Correspondence (Rule 2210(a)(3)), 4:5
RULE 15c2-3 PROPOSAL
                                                        FINRA Žling requirements/review procedure
 SEC point-of-sale disclosure proposal, 5:43
                                                              (Rule 2210(c)), 4:48-4:51
RULE 17a-3 OF 1934 ACT                                  Institutional sales material (Rule 2210(a)(4)), 4:6
 Customer account information, 3:3-3:7                  Principal approval (Rule 2210(b)(1)(A)), 4:45-
                                                              4:47
RULE 22d-1 OF 1940 ACT
                                                        Recordkeeping requirements (Rule 2210(b)(2)),
 Sales charges, 6:21
                                                              4:52
RULE 34b-1 OF 1940 ACT                                  Sales literature (Rule 2210(a)(2)), 4:4
 Advertising and sales literature, 4:38, 4:41
                                                       RULE 2211
RULE 156 OF 1933 ACT                                    Institutional sales material and correspondence,
 Advertising and sales literature, 4:38, 4:42                 4:37, 13:3, 13:4

Index-12
Index


RULE 2212                                             RULE 2820
 Telemarketing/"cold calling’’ (Rule 2212), 4:55,      Compensation limitations (Rule 2820(g)), 10:37-
     4:56                                                   10:46
                                                       Receipt of payment (Rule 2820(c)), 10:33
RULE 2230
                                                       Redemption (Rule 2820(f)), 10:36
 ConŽrmations (1934 Act Rule 10b-10 and Rule
     2230), 3:19, 3:20                                 Selling agreements (Rule 2820(e)), 10:35
                                                       Transmittal (Rule 2820(d)), 10:34
RULE 2260                                              Variable contracts rule, 10:32
 Customer account agreements, forwarding of            Variable insurance products, compensation limi-
     proxies and shareholder reports, 3:44, 3:45            tations, 10:37-10:46
RULE 2280                                             RULE 2821
 Customer account agreements, public disclosure        Suitability responsibilities for deferred variable
     program (BrokerCheck), 3:46                            annuities, 10:18-10:23
RULE 2310                                             RULE 2830
 No-load funds, ‘‘know-your-customer’’ require-        Asset-based sales charge (Rule 2830(d)(1)), 6:4
     ments, 8:2                                        Asset-based sales charge (Rule 2830(d)(2)), 6:5
 Recommendations to customers, suitability, 5:7-       Calculation of CDSCs (Rule 2830(d)(6)(A)), 6:9
     5:17                                              Compensation limitations (Rule 2830(l)), 5:33,
 Summary, 5:6                                               7:2-7:13
RULE 2330(e) AND (f)                                   Customer account agreements, conŽrmations,
                                                            disclosure of deferred sales charges (Rule
 Guarantees/sharing in customer accounts, 7:32
                                                            2830(n)), 3:20
RULE 2340                                              Disclosure of deferred sales charge on conŽrma-
 Customer account statements, 3:21-3:23                     tion (Rule 2830(n)), 5:35, 6:11
                                                       No-load funds (Rule 2830(d)(4)), 6:7, 8:3
RULE 2350                                              Sales activities, investment company rule, 5:22-
 Account statements, selling funds through                  5:35
     Žnancial institutions (Rule 2350(c)(4)(A)),       Sales charge deferred, disclosure on conŽrmation
     9:11                                                   (Rule 2830(n)), 5:35, 6:11
 Advertisements and sales literature, selling funds    Secondary trading of EFT shares, 5:30
     through Žnancial institutions (Rule               Share charge limits (Rule 2830(d)), 6:3-6:10
     2350(c)(4)(B)), 9:8, 9:9
 Networking and brokerage arrangements, selling       RULE 3010
     funds through Žnancial institutions (Rule         Background investigations (Rule 3010(e)), 2:4-
     2350(c)(2)), 9:5                                      2:9
 Opening account, selling funds through Žnancial       Broker ‘‘taping’’ rule, advertising and sales
     institutions (Rule 2350(c)(3)), 9:7                   literature (Rule 3010(b)(2)), 4:57
 Premises of bank as site of sale (Rule                Supervisory system (Rule 3010), 15:2-15:29
     2350(c)(1)), 9:2-9:4
 Shorter format disclosures, selling funds through    RULE 3011
     Žnancial institutions (Rule 2350(c)(4)(C)),       Customer account agreements, antimoney
     9:9                                                   laundering compliance programs, 3:30-3:40
                                                       Independent testing function (Rule 3011(c)), 3:42
RULE 2370                                              Ongoing AML training program (Rule 3011(e)),
 Borrowing from customers, 7:33                            3:41
 Loans to customers, 7:33
                                                      RULE 3012
RULE 2420                                              Supervisory control system (Rule 3012), 15:30-
 Finder's fees, 7:30                                       15:35
RULE 2430                                             RULE 3020
 Charges for services, 7:35                            Customer account agreements, Ždelity insurance
                                                           coverage, 3:43
RULE 2510
 Customer account agreements, discretionary           RULE 3030
     account information, 3:8-3:11                     Outside activities of representatives, 7:23-7:26
 Money market bulk exchanges exception (Rule           Sales personnel registration, dual employment
     2510(d)), 3:28                                         (Rules 3030 and 3040), 2:54

                                                                                                  Index-13
                                                                 Mutual Funds Sales Practices


RULE 3040                                           SALES ACTIVITIES—Cont’d
 Outside activities of representatives, 7:23-7:26     Commercial honor and principles of trade (Rule
 Remote oce supervision, private securities                2010)—Cont’d
      transactions (Rule 3040), 15:44                   illiquid investments (RN 08-30), 5:3
 Sales personnel registration, dual employment          promoting commission discounts, 5:4
      (Rules 3030 and 3040), 2:54                       standards, generally, 5:2-5:4
RULE 3050                                             Compliance with dealer agreements, 5:37
 Securities accounts at other Žrms, 7:29              Dealer agreements, compliance with, 5:37
                                                      Extending margin for mutual fund shares (1934
RULE 3070                                                   Act section 11(d)), 5:48
 Customer complaints, reporting by Žrm (Rule          Fair dealing with customers (IM-2310-2), 5:5
      3070), 2:58, 2:59                               Financial institutions, selling funds through.
 Disciplinary matters, reporting by Žrm (Rule               Financial Institutions (this index)
      3070), 2:58, 2:59
                                                      Investment company rule (Rule 2830)
RULE 3080                                               generally, 5:22
 Sales personnel registration, arbitration              compensation issues (Rule 2830(l)), 5:33
      disclosure for registered persons (Rule           conditions for discounts to dealers (Rule
      3080), 2:61                                             2830(c)), 5:25
RULE 3110                                               directed brokerage arrangements (Rule
 Changes in account name or designation,                      2830(k)), 5:32
      customer account agreements (Rule                 disclosure of deferred sales charge on
      3110(j)), 3:14                                          conŽrmation (Rule 2830(n)), 5:35
 Customer account information (Rule 3110(c)),           discounts to dealers (Rule 2830(c)), 5:25
      3:3-3:7                                           dividends sales (Rule 2830(e)), 5:27
 Holding customer mail, customer account agree-         principal purchases of fund shares (Rule
      ments (Rule 3110(i)), 3:15                              2830(g), (i), and (j)), 5:29, 5:30
 Predispute arbitration agreements, customer
                                                        prompt payment for investment company
      account agreements (Rule 3110(f)), 3:17,
                                                              shares (Rule 2830(m)), 5:34
      3:18
                                                        public oering price, maintaining in sales by
RULE 3130                                                     underwriters (IM-2830-2), 5:24
 Supervision, broker-dealer compliance programs,        refund of sales charges (Rule 2830(h)), 5:31
     15:36-15:37                                        sales charge deferred, disclosure on conŽrma-
RULE 3220                                                     tion (Rule 2830(n)), 5:35, 6:11
 Inuencing or rewarding employees of others,           sales charges refund (Rule 2830(h)), 5:31
     7:17-7:22                                          sales charges (Rule 2830(d)), 5:26
 Remote oce supervision, entertainment and             secondary trading of EFT shares, 5:30
     gifts, 15:46                                       underwriters, sales by (Rules 2830(c) and
RULE 5510                                                     2420), 5:23-5:25
 Closed-end funds, initial public oering of            withholding orders (Rule 2830(f)), 5:28
     shares, 14:4, 14:5                               ‘‘Know-your-customer,’’ 5:6
RULE 11870                                            Late trading/market timing transactions (NTM
                                                            03-50), 5:45, 5:46
 Customer account agreements, transfers, 3:24-
     3:28                                             Obligations
                                                        bonds and bond funds sales (NTM 04-30),
RULES                                                         5:40
 FINRA regulatory scheme, 1:5                           cash alternatives, selling (RN 08-82), 5:42
SALES ACTIVITIES                                        high-yield environment (RN 08-81), 5:41
  Generally, 5:1-5:49                                   sales practices, generally (NTMs 94-16 and
  Additional mutual fund practices requirements,              95-80), 5:38
      5:36-5:49                                         securities sold in high-yield environment (RN
  Commercial honor and principles of trade (Rule              08-81), 5:41
      2010)                                           Principal-protected mutual funds, 5:49
    advertising, 5:4                                  Recommendations by representatives changing
    commission discounts promotions, 5:4                    Žrms (NTM 07-06), 5:47

Index-14
Index


SALES ACTIVITIES—Cont’d                                 SALES CHARGES—Cont’d
  Recommendations to customers, suitability               Investment company rule (Rule 2830)
        (Rules 2310)                                        refund (Rule 2830(h)), 5:31
     appropriate recommendations, 5:10, 5:11                sales charges, generally (Rule 2830(d)), 5:26
     customer-speciŽc suitability, 5:8-5:12               Letters of intent, 6:18
     deŽnition of recommendation, 5:11                    Mutual fund share classes, 6:2
     hedge funds sales to retail customers (NTM           Mutual fund supermarkets, 6:26
           03-07), 5:16                                   NAV transfers, 6:34
     information about customer, obtaining, 5:9           1940 Act Rule 6c-10 and exemptive relief, 6:24
     institutional customers, suitability obligations     1940 Act Rule 12b-1 rebates, 6:27
           (IM-2310-3), 5:17                              1940 Rule 12b-1, generally, 6:25
     internal controls, customer speciŽc suitability,     Prospectus disclosure about sales charges (Item 7
           5:12                                                of Form N-1A), 6:29
     multiclass funds, suitability issues (NTMs           Quantity discounts
           95-80 and 94-16), 5:15                           generally, 6:12-6:19
     obtaining customer information, 5:9                    accumulation rights, 6:19
     online communications (NTM 01-23), 5:14                breakpoint discounts, 6:13-6:17
     reasonable basis suitability, 5:13                     breakpoint sales (IM-2830-1; Special NTM
     recommendation deŽned, 5:11                                  02-85), 6:14-6:17
     summary, 5:6                                           breakpoint sales (IM-2830-1; Special NTM
  Redemption fees on short-term trades, 5:46                      02-85) breakpoint discounts, 6:14-6:17
  SEC point-of-sale disclosure proposal (proposed           breakpoints industry task force/written
        1934 Act Rule 15c2-3), 5:43                               disclosure document, 6:15
  Senior investors, sales to (RN 07-43)                     letters of intent, 6:18
     generally, 5:18                                        rights of accumulation, 6:19
     communications, 5:20                                   SEC breakpoint prospectus disclosure require-
     other issues, 5:21                                           ments, 6:17
     recommendations, suitability, 5:19                     SEC/FINRA breakpoint actions, 6:16
  Standards of commercial honor and principles of         Revenue sharing, 6:28
        trade, 5:2-5:4                                    Rights of accumulation, 6:19
  Supervision, 5:39                                       Sales of B shares, 6:31
  ‘‘Switching’’ or trading in fund shares (NTMs           Scheduled variations in sales loads (1940 Act
        95-80 and 94-16), 5:44                                 Rule 22d-1), 6:21
  Trade principles. Commercial honor and                  SEC breakpoint prospectus disclosure require-
        principles of trade (Rule 2010), above                 ments, 6:17
SALES CHARGES                                             SEC/FINRA breakpoint actions, 6:16
  Generally, 6:1-6:34                                     SEC requirements (1940 Act section 22(d))
  Accumulation rights, 6:19                                 generally, 6:20
  Asset-based sales charges                                 asset-based sales charges (1940 Act Rule 12b-
    limits (Rule 2830(d)(1)), 6:4                                 1), 6:25-6:27
    limits (Rule 2830(d)(2)), 6:5                           deferred sales loads, 6:23, 6:24
    1940 Act Rule 12b-1, 6:25-6:27                          mutual fund supermarkets, 6:26
  Breakpoint discounts, 6:13-6:17                           prospectus disclosure about sales charges (Item
  Breakpoint sales (IM-2830-1; Special NTM                        7 of Form N-1A), 6:29
       02-85) breakpoint discounts, 6:14-6:17               revenue sharing, 6:28
  Breakpoints industry task force/written disclosure        Rule 6c-10 and exemptive relief, 6:24
       document, 6:15                                       Rule 12b-1, generally, 6:25
  B shares sales, 6:31                                      Rule 12b-1 rebates, 6:27
  Customer account agreements, conŽrmations,                scheduled variations in sales loads (1940 Act
       disclosure of deferred sales charges (Rule                 Rule 22d-1), 6:21
       2830(n)), 3:20                                       transaction or service fees on sales or redemp-
  Deferred sales loads, 6:23, 6:24                                tions, 6:22
  Discounts in UIT sales charges (NTM 04-26),             Service fees
       6:33                                                 SEC requirements (1940 Act section 22(d)),
  Exchange oers (1940 Act section 11), 6:32                      transaction or service fees on sales or
  Fees on sales or redemptions, 6:22                              redemptions, 6:22

                                                                                                  Index-15
                                                                     Mutual Funds Sales Practices


SALES CHARGES—Cont’d                                   SALES PERSONNEL—Cont’d
  Service fees—Cont’d                                    Corporate securities limited representative (Series
    share charge limits (Rule 2830(d)(5)), 6:7                 62), 2:23
  Share charge limits (Rule 2830(d))                     Customer complaints
    generally, 6:3                                          practical guidance for handling, 2:59
    asset-based sales charge (Rule 2830(d)(1)), 6:4         reporting by Žrm (Rule 3070), 2:58, 2:59
    asset-based sales charge (Rule 2830(d)(2)), 6:5      Directors as principals, 2:36
    calculation of CDSCs (Rule 2830(d)(6)(A)),           ‘‘DisqualiŽed’’ persons, 2:7
          6:9                                            Employment contract issues, 2:9
    disclosure of deferred sales charge on               Examinations (Rule 1070)
          conŽrmation (Rule 2830(n)), 5:35, 6:11            generally, 2:11
    fund of funds (Rule 2830(d)(3)), 6:6                    areas tested, 2:12
    funds with asset-based sales charge (Rule               fees, 2:50
          2830(d)(2)), 6:5                                  FINRA review of waiver requests, 2:16
    funds without asset-based sales charge (Rule            submitting waiver request, 2:15
          2830(d)(1)), 6:4                                  taking examination, 2:13
    ‘‘no load’’ (Rule 2830(d)(4)), 6:7                      waivers (Rule 1070(d)), 2:14-2:16
    reinvested dividends and sales loads (Rule           Failure to register person acting as principal, 2:39
          2830(d)(6)(B)), 6:10                           Fees
    sales load on reinvested dividends (Rule                examination, 2:50
          2830(d)(6)(B)), 6:10                              registration, 2:50
    service fees (Rule 2830(d)(5)), 6:7                  Financial principals (Series 27), 2:33, 2:34
    use of term ‘‘no load’’ (Rule 2830(d)(4)), 6:7       Finders, registration, 2:49
  Transaction or service fees on sales or redemp-        Fingerprinting (NTM 05-93), 2:10
       tions, 6:22                                       FINRA review of examination waiver requests,
SALES LITERATURE                                               2:16
                                                         Forms U4 and U5, 2:40-2:43
  Advertising and Sales Literature (this index)
                                                         General counsel/secretary as principals, 2:37
SALES PERSONNEL                                          General securities personnel (Series 24), 2:30
  Generally, 2:1-2:62                                    General securities representative (Series 7), 2:20
  Areas tested in examinations, 2:12                     History of issues (NTM 97-19), 2:6
  Assistant representative-order processing (Series      Independent contractors/consultants
       11), 2:24                                            registration, 2:48
  Background investigations (Rule 3010(e))               ‘‘Ineligible’’ persons (1940 Act section 9), 2:8
    generally, 2:4                                       Investment company and variable products
    ‘‘disqualiŽed’’ persons, 2:7                               limited representative (Series 6), 2:21
    employment contract issues, 2:9                      Investment company products/variable contracts
                                                               limited personnel (Series 26), 2:31
    history of issues (NTM 97-19), 2:6
                                                         Multiple registered FINOPs (Series 27, NTM
    ‘‘ineligible’’ persons (1940 Act section 9), 2:8           06-23), 2:34
    preregistration searches, 2:5                        Municipal fund securities limited principal
  Bona Žde business purposes registrations pro-                (Series 51), 2:32
       posal, 2:47                                       Municipal securities representative (Series 52),
  Categories                                                   2:22
    permissive registration categories (Rules            Osite FINOPs (Series 27, NTM 06-23), 2:34
         1021(a) and 1031(a)), 2:46                      Ongoing duty to update registration information,
    principal registrations (Rule 1021), 2:29-2:34             Form U4, 2:42
    representative registrations (Rule 1031), 2:19-      Parking or warehousing registrations (Rules 1021
         2:27                                                  and 1031), 2:45-2:47
  CCO registration as principal (Rule 1022(a)),          Part-time FINOPs (Series 27, NTM 06-23), 2:34
       2:38                                              Permissive registration categories (Rules 1021(a)
  Closed-end funds, 14:2                                       and 1031(a)), 2:46
  Continuing education program (Rule 1120)               Persons/activities not subject to registration (Rule
    generally, 2:55                                            1060), 2:26
    Žrm element (Rule 1120(b)), 2:57                     Persons not subject to registration, 2:25-2:27
    regulatory element (Rule 1120(a)), 2:56              Preregistration searches, 2:5

Index-16
Index


SALES PERSONNEL—Cont’d                                SALES PERSONNEL—Cont’d
  Principal registrations (Rule 1021), 2:28-2:39        Registration—Cont’d
    generally, 2:28                                       parking or warehousing registrations (Rules
    categories, 2:29-2:34                                       1021 and 1031), 2:45-2:47
    CCO registration as principal (Rule 1022(a)),         permissive registration categories (Rules
          2:38                                                  1021(a) and 1031(a)), 2:46
    directors as principals, 2:36                         practical guidance for handling customer
                                                                complaints, 2:59
    failure to register person acting as principal,
          2:39                                            principal registrations (Rule 1021), 2:28-2:39
    Žnancial principals (Series 27), 2:33, 2:34           reinstatement of lapsed registration (Rule
                                                                1031(c)), 2:51, 2:52
    general counsel/secretary as principals, 2:37
                                                          representative registrations (Rule 1031), 2:18-
    general securities personnel (Series 24), 2:30              2:27
    investment company products/variable                  Rule 1021, principal registrations, 2:28-2:39
          contracts limited personnel (Series 26),        Rule 1031, representative registrations, 2:18-
          2:31                                                  2:27
    multiple registered FINOPs (Series 27, NTM            Rule 1031(c), reinstatement of lapsed registra-
          06-23), 2:34                                          tion, 2:51, 2:52
    municipal fund securities limited principal           Rule 1120, continuing education program,
          (Series 51), 2:32                                     2:55-2:57
    osite FINOPs (Series 27, NTM 06-23), 2:34            Rule 3070, Žrm reporting of disciplinary mat-
    part-time FINOPs (Series 27, NTM 06-23),                    ters and customer complaints, 2:58, 2:59
          2:34                                            Rule 3080, arbitration disclosure for registered
    secretary/general counsel as principals, 2:37               persons, 2:61
  QualiŽcation                                            Rules 1021(a) and 1031(a), permissive
    generally, 2:3-2:16                                         registration categories, 2:46
    background investigations, above                      Rules 1021 and 1031, parking or warehousing
    examinations (Rule 1070), 2:11-2:16                         registrations, 2:45-2:47
    Žngerprinting (NTM 05-93), 2:10                       Rules 3030 and 3040, dual employment, 2:54
  Registration                                            state registration, 2:62
    generally, 2:17                                       variable insurance products, 10:6
                                                        Registration and reporting forms U4 and U5
    arbitration disclosure for registered persons
          (Rule 3080), 2:61                               generally, 2:40
    bona Žde business purposes registrations pro-         Form U4, 2:41, 2:42
          posal, 2:47                                     Form U5, 2:43
    broker check disclosure (IM-8310-2), 2:60             ongoing duty to update registration informa-
                                                                tion, Form U4, 2:42
    closed-end funds, 14:2
                                                        Representative registrations (Rule 1031), 2:18-
    continuing education program (Rule 1120),                2:27
          2:55-2:57
                                                          generally, 2:18
    customer complaints, reporting by Žrm (Rule           assistant representative-order processing
          3070), 2:58, 2:59                                     (Series 11), 2:24
    disciplinary matters, reporting by Žrm (Rule          categories, 2:19-2:27
          3070), 2:58, 2:59
                                                          corporate securities limited representative
    dual employment (Rules 3030 and 3040), 2:54                 (Series 62), 2:23
    examination fees, 2:50                                general securities representative (Series 7),
    fees, 2:50                                                  2:20
    Žnders, 2:49                                          investment company and variable products
    Forms U4 and U5, 2:40-2:43                                  limited representative (Series 6), 2:21
    independent contractors/consultants, 2:48             municipal securities representative (Series 52),
    military service, reinstatement of registration             2:22
          inactive due to (IM-1000-2), 2:52               persons/activities not subject to registration
    municipal fund securities/Section 529 plans,                (Rule 1060), 2:26
          11:3                                            persons not subject to registration, 2:25-2:27
    osite registration, 2:53                             unregistered persons who contact prospective
    ongoing duty to update registration informa-                customers (NTM 88-50), 2:27
          tion, Form U4, 2:42                           Secretary/general counsel as principals, 2:37

                                                                                                 Index-17
                                                                   Mutual Funds Sales Practices


SALES PERSONNEL—Cont’d                               SECURITIES EXCHANGE ACT OF 1934
  Submitting examination waiver request, 2:15            —Cont’d
  Taking an examination, 2:13                          Customer account agreements—Cont’d
  Unregistered persons who contact prospective           conŽrmations (Rule 2230 and 1934 Act Rule
      customers (NTM 88-50), 2:27                             10b-10), 3:19, 3:20
  Waiver of examination (Rule 1070(d)), 2:14-2:16        disclosure of credit terms (1934 Act Rule 10b-
                                                              16), 3:29
SECTION 529                                            Sales activities
  Municipal Fund Securities/Section 529 Plans            extending margin for mutual fund shares (sec-
     (this index)                                             tion 11(d)), 5:48
SECURITIES ACT OF 1933                                   SEC point-of-sale disclosure proposal
  SEC advertising and other requirements                      (proposed Rule 15c2-3), 5:43
    content standards for sales material (1933 Act     SEC examinations (section 17)
         Rule 156), 4:42                                 generally, 16:1, 16:5
    performance advertisements (1933 Act Rule            compliance alert letter, 16:7
         482), 4:39, 4:40                                examination process, 16:6
  SEC regulatory scheme, 1:13                            process, 16:6
  Variable insurance products, status under Act,       SEC regulatory scheme, 1:11
       10:5                                          SENIOR INVESTORS
SECURITIES AND EXCHANGE                                Sales to (RN 07-43)
    COMMISSION (SEC)                                     generally, 5:18
  Advertising and sales literature requirements          communications, 5:20
       (Rules 482, 34b-1, and 156)                       other issues, 5:21
    generally, 4:38                                      recommendations, suitability, 5:19
    content standards for sales material (1933 Act   SHARE CLASSES
          Rule 156), 4:42
                                                       Generally, 6:1
    disclosure requirements for Rule 482               Mutual fund share classes, 6:2
          advertisements, 4:40
    performance advertisements (1933 Act Rule        SOLICITATION
          482), 4:39, 4:40                             Compensation, solicitation of charitable gifts by
    sales literature (1940 Act Rule 34b-1), 4:41          customers (NTM 06-21), 7:34
    summary prospectus, 4:43                         SOLICITOR'S FEES
  Examinations (1934 Act section 17)                   Generally, 7:31
    generally, 16:1, 16:5
    compliance alert letter, 16:7                    STANDING COMMITTEES
    examination process, 16:6                          FINRA regulatory scheme, 1:3
    process, 16:6                                    STATE LAWS AND REGULATIONS
  Investigations and enforcement proceedings           Regulatory requirements, 1:18
    generally, 16:10, 16:11
    SEC enforcement manual, 16:11                    ‘‘STRETCH’’ IRA COMMUNICATIONS
  Regulatory scheme                                     Advertising and sales literature, content standards
                                                            for communications (Rule 2210(d)), 4:17
    generally, 1:10-1:14
    Investment Advisers Act of 1940, 1:14            SUITABILITY OF RECOMMENDATIONS TO
    Investment Company Act of 1940, 1:12                 CUSTOMERS
    1934 Act, 1:11                                     Sales Activities (this index)
    1940 Act, 1:12                                   SUPERVISION
    Securities Act of 1933, 1:13                       Generally, 15:1-15:65
    Securities Exchange Act of 1934, 1:11              Advertising and sales literature, 15:29
  SEC Sta Legal Bulletin No. 17, remote oce          Annual review (Rule 3010(c)(1))
       supervision, 15:50
                                                         generally, 15:17
SECURITIES EXCHANGE ACT OF 1934                          reasonable review standards (Rule 3010(c)(1)),
  Customer account agreements                                 15:18
    account information (Rule 3110(c) and 1934         Broker-dealer compliance programs (Rule 3130)
        Act Rule 17a-3), 3:3-3:7                         generally, 15:36

Index-18
Index


SUPERVISION—Cont’d                                   SUPERVISION—Cont’d
  Broker-dealer compliance programs (Rule 3130)        Sales activities, 5:39
        —Cont’d                                        Sales literature, 15:29
     annual CEO compliance certiŽcation (Rule          Supervisory control system (Rule 3012)
           3130(b) and (c)), 15:38                       generally, 15:30
     chief compliance ocer (Rule 3130(a)), 15:37        checklist, 15:31
  Electronic Communications (this index)                 deŽnition of producing manager, 15:35
  Electronic communications with customers, 4:66,        enforcement of policies and procedures (Rule
        4:68                                                   3012(a)(2)), 15:34, 15:35
  Employing statutorily disqualiŽed persons (NTM         establishment of policies and procedures (Rule
        90-2), 15:63                                           3012(a)(2)), 15:35
  Internal inspections (Rule 3010(c))                    guidance for test and verify procedures (NTM
     annual review (Rule 3010(c)(1)), 15:17, 15:18             05-29), 15:33
     heightened inspections (Rule 3010(c)(3)),           maintenance of policies and procedures (Rule
           15:21                                               3012(a)(2)), 15:34, 15:35
     limited size and resources exception (Rule          producing manager, deŽnition, 15:35
           3010(c)(3)), 15:20                            test and verify procedures (Rule 3012(a)(1)),
     written inspection report (Rule 3010(c)(2)),              15:32
           15:19                                       Supervisory system (Rule 3010), 15:2-15:29
  Investigate representatives qualiŽcations (Rule      Third-party service providers, responsibility for
        3010(e)), 15:28                                     (NTM 05-48), 15:64
  Minimum elements (Rule 3010(a)(1)-(7))               Transaction and correspondence review (Rule
     generally, 15:3                                        3010(d))
     annual compliance meetings (Rule 3010(a)(7)),       generally, 15:22
           15:11                                         alternative correspondence review (Rule
     branch oce deŽnition/exclusions (Rule                    3010(d)(2)), 15:26
           3010(g)(2)), 15:8                             correspondence review (Rule 3010(d)(2)),
     OSJs (Rule 3010(a)(3)), 15:6                              15:24-15:26
     principals for each type of business (Rule          predistribution review (Rule 3010(d)(2)),
           3010(a)(2)), 15:5                                   15:25
     principal supervision (Rule 3010(a)(5)), 15:9       representatives supervision (Rule 3010(d)(1)),
     qualiŽcation of supervisory personnel (Rule               15:23
           3010(a)(6)), 15:10                            retention of correspondence (Rule 3010(d)(3)),
     representative supervision (Rule 3010(a)(5)),             15:27
           15:9                                        Variable Insurance Products (this index)
     supervisors at OSJs and non-OSJs (Rule            Written procedures (Rule 3010(b))
           3010(a)(4)), 15:7, 15:8                       generally, 15:12
     written procedures (Rule 3010(a)(1)), 15:4          enforcement (Rule 3010(b)), 15:13
  New product review (NTM 05-26), 15:62                  establishment (Rule 3010(b)), 15:13
  Outgoing correspondence, 15:29                         heightened supervisory procedures (NTM
  Reasonable review standards (IM 3010-1), 15:18               97-19), 15:16
  Remote oce                                            maintenance (Rule 3010(b)), 15:13
     generally, 15:40                                    maintenance (Rule 3010(b)(4)), 15:15
     communications with public, 15:47                   supervisory system written procedures (Rule
     entertainment (Rule 3220), 15:46                          3010(b)(3)), 15:14
     fair dealing with customers, 15:45              SUSPICIOUS ACTIVITY REPORTS (SARS)
     gifts (Rule 3220), 15:46                          Customer account agreements, antimoney
     inspections of unregistered oces, 15:43              laundering compliance programs (Rule
     o-site representatives (NTMs 86-65 and               3011), 3:39
           98-38), 15:41-15:48                       TELEMARKETING
     osite series 9/10 or 24 salespersons, 15:49
                                                      Advertising, oral communications, 4:55, 4:56
     private securities transactions (Rule 3040),
           15:44                                     TRAINING
     SEC Sta Legal Bulletin No. 17, 15:50            Customer account agreements, ongoing AML
     unregistered broker-dealer status, 15:48              training program (Rule 3011(e)), 3:41
  Risk management practices (NTM 99-92), 15:65        Variable insurance products, 10:23, 10:44

                                                                                               Index-19
                                                                       Mutual Funds Sales Practices


TRANSFERS                                                VARIABLE INSURANCE PRODUCTS
 Customer Account Agreements (this index)                    —Cont’d
                                                          Compensation limitations—Cont’d
UNDERWRITING                                                 gifts as noncash compensation, limits (Rule
 Closed-end funds, 14:3                                            2820(g)(4)(A)), 10:42
UNIT INVESTMENT TRUSTS                                       meetings for training and education as noncash
 Advertising and sales literature, content standards               compensation, limits (Rule
      for communications (Rule 2210(d)), 4:20                      2820(g)(4)(C)), 10:44
                                                             noncash compensation limits (Rule
VARIABLE INSURANCE PRODUCTS                                        2820(g)(4)), 10:41-10:46
 Generally, 10:1-10:52                                       noncash ‘‘contests’’ as noncash compensation,
 Advertisements and sales literature                               limits (Rule 2820(g)(4)(D)), 10:45
   bonus variable annuities advertising, 10:16               occasional entertainment as noncash
   predated performance used in variable                           compensation, limits (Rule
         annuities advertising, 10:15                              2820(g)(4)(B)), 10:43
 Annuities                                                   recordkeeping (Rule 2820(g)(3)), 10:40
   advertising, 10:15, 10:16                                 securities receipt prohibition (Rule
   background, 10:3                                                2820(g)(2)), 10:39
   bonus variable annuities advertising, 10:16               training meetings as noncash compensation,
   deŽcient variable annuity communications,                       limits (Rule 2820(g)(4)(C)), 10:44
         10:10                                               variable contracts rule (Rule 2820), 10:37-
   equity-indexed annuities supervision, 10:49,                    10:46
         10:50                                            Insurance agency networking arrangements,
   selling practices, charitable gift annuities sales,          10:52
         10:31                                            Life insurance
   suitability responsibilities for deferred variable        background, 10:4
         annuities (Rule 2821), 10:18-10:23                  suitability reminder for variable life insurance
   supervision, 10:47, 10:49, 10:50                                (NTM 00-44), 10:26
 Background, 10:2-10:5                                       supervision of variable life insurance sales
                                                                   (NTM 00-44), 10:48
 Communications
                                                          (nineteen)1933 Act, status of variable insurance
   generally, 10:7                                              products, 10:5
   advertising bonus variable annuities, 10:16            (nineteen)1940 Act, status of variable insurance
   bonus variable annuities advertising, 10:16                  products, 10:5
   common problems, 10:9                                  Registration of sales personnel oering variable
   deferral illustrations, hypothetical variable                insurance products, 10:6
         annuity tax, 10:11                               Rule 12b-1 plans for underlying funds, 10:51
   deŽcient variable annuity communications,              Sales personnel registration, 10:6
         10:10                                            Selling practices
   ‘‘do's’’ and ‘‘don'ts,’’ 10:9                             generally, 10:27
   fund level expenses in hypothetical illustra-             annuity replacement, 10:30
         tions, 10:14                                        charitable gift annuities sales, 10:31
   general guidelines (IM-2210-2), 10:8-10:10                group variable contract sales practices (NTM
   hypothetical variable annuity tax, 10:11                        97-27), 10:28
   IRR use in hypothetical illustrations, 10:13              life settlements sales to third parties (NTM
   life performance, 10:12-10:14                                   06-38), 10:29
   predated performance used in variable                  Suitability
         annuities advertising, 10:15                        generally, 10:17
 Compensation limitations                                    additional factors (NTM 96-86), 10:24
   ‘‘contests’’ as noncash compensation, limits              exchanges, recommendation requirements
         (Rule 2820(g)(4)(D)), 10:45                               (Rule 2821(b)(1)(B)), 10:20
   contributions to noncash arrangements, limits             principal review and approval (Rule 2821(c)),
         (Rule 2820(g)(5)(E)), 10:46                               10:21
   education meetings as noncash compensation,               recommendation requirements (Rule 2821(b)),
         limits (Rule 2820(g)(4)(C)), 10:44                        10:19, 10:20
   general limits on compensation (Rule                      reminder for variable annuity replacement,
         2820(g)(1)), 10:38                                        10:25

Index-20
Index


VARIABLE INSURANCE PRODUCTS                            VARIABLE INSURANCE PRODUCTS
   —Cont’d                                                —Cont’d
 Suitability—Cont’d                                     Training—Cont’d
   reminder for variable life insurance (NTM                    noncash compensation (Rule
         00-44), 10:26                                          2820(g)(4)(C)), 10:44
   responsibilities for deferred variable annuities       suitability responsibilities (Rule 2821(e)),
         (Rule 2821), 10:18-10:23                               10:23
   supervisory procedures (Rule 2821(d)), 10:22         Variable contracts rule (Rule 2820)
   training (Rule 2821(e)), 10:23                         generally, 10:32
 Supervision                                              compensation limitations (Rule 2820(g)),
   equity-indexed annuities sales (NTM 05-50),                  10:37-10:46
         10:49, 10:50                                     receipt of payment (Rule 2820(c)), 10:33
   federal securities laws, status of equity-indexed      redemption (Rule 2820(f)), 10:36
         annuities, 10:50                                 selling agreements (Rule 2820(e)), 10:35
   suitability supervisory procedures (Rule               transmittal (Rule 2820(d)), 10:34
         2821(d)), 10:22
   variable annuity sales (NTM 99-35), 10:47           WEB SITES
   variable life insurance sales (NTM 00-44),           Generally, 4:64
         10:48
 Training                                              YIELD DISCLOSURES
   compensation limitations, training meetings as        Advertising and sales literature, 4:36




                                                                                                  Index-21

								
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