Securities Dealers Inc. is taking stock of whether its suitability rules should apply to customers of on-line brokerages.

Though the NASD has not brought any case to date, on-line transactions are a gray area because whether a broker recommendation was made depends on the "facts and circumstances," said Alden S. Adkins, senior vice president and general counsel at the regulator. "We haven't closed our books yet," he told group of more than 300 regulators, enforcement and compliance officers, and lawyers at NASD's fall securities conference here.

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