NASD Adopts Rule for ‘Roll-Ups’: The National...
From Times Staff and Wire Reports
NASD Adopts Rule for ‘Roll-Ups’: The National Assn. of Securities Dealers voted to eliminate a potential conflict of interest for brokers soliciting approval of partnership “roll-ups.” Roll-ups are shares in limited partnerships repackaged into a new financial product and traded publicly like a stock. They have come under congressional scrutiny because of incidents in which the value of a partnership is diluted to compensate for other bad investments. The adopted rule prohibits the practice whereby brokers receive commissions on roll-up offerings only if they collect “yes” votes from the limited partners who must approve the deals.
