May 3, 1990
TO: SEC RULES COMMITTEE NO. 27-90
RULE 12b-1 AD HOC COMMITTEE
RE: NASD REQUESTS MEMBERS TO VOTE ON CDSL DISCLOSURE PROPOSAL
________________________________________________________
As we previously informed you, the NASD has proposed to
required disclosure on confirmations when an investment company
imposes a deferred sales charge on the redemption of shares.
(See Memorandum to SEC Rules Members No. 65-89 and Rule 12b-1
Ad Hoc Committee, dated December 5, 1989.) Attached is a copy
of the May NASD Notice to Members requesting members to vote on
the proposal by June 5, 1990.
The proposal reflects changes that were made in response to
the comments the NASD received on its initial proposal. One of
the more significant changes is that the proposed disclosure
legend should be required to be placed on the front of a
confirmation to ensure that the disclosure is highly visible to
a prospective investor.
We will keep you informed of developments.
Amy B. Rosenblum
Assistant General Counsel
Attachment