OTCBB General Discussion

[Anthony M]

Investor Protection

It is important to note that the NASD has no regulatory authority over OTC Bulletin Board issuers. The NASD's responsibilities include establishing rules governing its broker/dealer members' business conduct; setting qualification standards for securities industry professionals; examining members for their financial and operational condition as well as their compliance with appropriate rules and regulations; investigating alleged violations of securities laws; disciplining violators of applicable rules and regulations; and responding to inquiries and complaints from investors and members.

Due to the high level of risk involved in investing in Penny Stocks, the SEC created Rule 15g-2, which makes it "unlawful for a broker or dealer to effect a transaction in any penny stock for or with the account of a customer unless, prior to effecting such transaction, the broker or dealer has furnished to the customer a document containing the information set forth in Schedule 15G, Rule 15g-100, and has obtained from the customer a manually signed and dated written acknowledgement of receipt of the document." (SEC Rule 15g-2(a), Risk Disclosure Document Relating to the Penny Stock Market)

If you believe that you have been defrauded by an OTC Bulletin Board issuer, you may file a complaint with your State Securities Regulator or contact the SEC's Office of Investor Education and Assistance.

If you believe that you have been defrauded by a broker, securities firm, investment advisor, or other securities professional, you may choose to file a customer complaint or a regulatory tip with NASD Regulation.

We encourage you to ensure that you have a thorough understanding of the rights that you have as an investor and to investigate the background of the individual broker and brokerage firm before you invest. Please visit the links below for more information on how to protect yourself or to obtain backgound information on your broker or brokerage firm.

About Your Broker Information about the NASD RegulationSM Public Disclosure Program, which allows investors to request a report of all disclosable information regarding an individual broker or securities firm, including instructions on requesting a report (either online, by phone, by fax, or by mail) and an explanation of the types of information that are disclosable.
How To Avoid Problems Information on ways to prevent potential problems and steps to take to resolve a dispute with a broker, securities firm, investment advisor, or other securities professional.
Invest Wisely Information on selecting a broker, understanding a new account agreement, several factors to consider before making an investment decision, red flags to watch out for, and where to turn if you encounter a problem.
SEC Rule 15g-9 This rule established several sales practice requirements for broker/dealers transacting in "penny stocks".
What Every Investor Should Know General information provided by the SEC Office of Public Affairs, Policy Evaluation and Research.


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LINK>>>
http://www.otcbb.com/investorinformation/investorinfo.stm