The National Association of Securities Dealers wants to put even tougher limits on the kinds of non-cash incentives member companies can use to promote sales of specific types of investments.[@@]
The NASD already prohibits contests and other non-cash compensation systems that use vacations, concert tickets and other non-cash incentives to sell specific variable insurance contracts or mutual funds. Companies in the variable insurance and mutual fund markets must limit themselves to offering incentives that reward sales representatives for total production rather than sales of one particular security, or one type of security.
Now, the self-regulatory group wants to expand that ban to apply the same restrictions on contests and other types of non-cash incentive programs involving sales of all types of securities.
