January 16, 1990
TO: BOARD OF GOVERNORS NO. 6-90
RE: Planning for the l990s Project
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The second day of the Board of Governors meeting to be held
next week at The Boulders will be devoted to an interim report
and discussion on the "Planning for the l990s Project." The
Institute's consultants for this project will report on their
work to date, and ample time will be allowed for questions and
comments from the Board.
Attached for your consideration are preliminary drafts and
outlines of the "90s Project" reports. Heidi Fiske is
responsible for Parts I and III dealing with the industry and the
Institute. Stephen West of Sullivan & Cromwell is responsible
for Part IIA which covers regulation, and William Paul of
Covington & Burling is responsible for Part IIB dealing with
taxation. Parts I, IIB and III are in discursive form. Ms.
Fiske intends to add material to flesh out each section of Part
I, as well as provide appropriate appendices. Part IIA is
currently in the form of a detailed outline.
A word as to the scope of these materials. None of the
parts of the report purports to be a quantitative analysis
flowing from the various scenarios and options which they
expressly or inferentially present. Such statistical data as are
included are intended for background and illustration. For
example, while Part I raises the issue of whether the American
mutual fund market is "mature" and contains (contrasting) views
of members on this subject, any quantitative analysis of this
matter would be the subject of further study. While Part III
reports the views of some members that the Institute should
reallocate its resources to place greater emphasis on marketing-
related matters, no quantitative analysis of the present budget
or proposed changes is attempted. Also, a number of the
scenarios for change in the regulatory and tax areas have obvious
economic consequences which are not quantified.
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Although quantitative studies will be undertaken as
followups to the 90s project, it should be recognized that many
matters both in the business and legal areas defy quantification
and a program for change must ultimately rest on the development
of an informed judgmental consensus. The enclosed documents and
our discussions next week should serve to initiate that process.
David Silver
Attachments