April 5, 1991
TO: OPERATIONS COMMITTEE NO. 10-91
TRANSFER AGENT ADVISORY COMMITTEE NO. 17-91
RE: SHAREHOLDER CONFIRMATION SURVEY
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As previously reported to the Committees, the Confirmation
Requirements Task Force, chaired by Ralph Spuehler of Keystone, is
studying the feasibility of reducing the number of confirmations sent
to shareholders. The possibility of eliminating all immediate
confirmations was reviewed from a shareholder service perspective as
well as a reduction of fund expenses. The task force concluded that a
complete elimination of immediate confirmations (in favor of monthly
confirmation statements) for all transactions is not desirable from a
shareholder service point of view. In fact, the task force concluded
that such a broad elimination might actually increase service problems
and expenses as transaction problems would not be discovered on a
timely basis.
Thus, the objective of the task force now is to determine if
mutual fund groups are in favor of a limited reduction in confirmation
requirements for certain transaction types, including dividend
reinvestment, automatic investment and systematic withdrawal
transactions.
In order to obtain data for the industry regarding this issue, we
have enclosed a questionnaire requesting information relating to your
fund group's shareholder confirmation procedures. In addition, the
survey requests feedback regarding which transactions you would
consider sending monthly or quarterly statements to shareholders
(reflecting recent account activity) in lieu of immediate confirmation
statements.
Please return the completed questionnaire by April 26, 1991 to:
Kathleen C. Joaquin
Investment Company Institute
1600 M Street, NW - 6th Floor
Washington, D.C. 20036
The responses will be summarized and distributed to participating
Committee members as soon as possible. Thank you for your assistance
in this effort.
Donald E. O'Connor
Vice President - Operations
Enclosure