August 2, 1991
TO: FEDERAL LEGISLATION MEMBERS NO. 13-91
FEDERAL LEGISLATION COMMITTEE NO. 14-91
RE: INSTITUTE TESTIFIES ON "FAIR TRADE IN FINANCIAL SERVICES"
__________________________________________________________
Earlier this week, the Institute testified before the House
Ways and Means Subcommittee on Trade on the "Fair Trade in
Financial Services Act."
In its testimony, the Institute expressed its support for
the measure which would authorize the Securities and Exchange
Commission to deny U.S. registration to investment advisers from
a foreign country that is found to be discriminating against
American investment advisers.
The Institute addressed three areas of specific concerns
with issues of foreign market access and international
competitiveness where market access is essential:
1. U.S. investment advisers seeking to advise and manage
mutual funds organized abroad;
2. U.S. advisers seeking to provide investment advice
abroad to non-mutual fund clients; and
3. U.S. mutual funds seeking to sell their shares abroad.
The Institute noted that if U.S. advisers and mutual funds
are to compete in these three areas, our government must have a
wide range of negotiating tools, including the ability to
withhold access to U.S. markets unless equality of competitive
opportunity is provided in foreign markets. The Institute
asserted that "the Fair Trade in Financial Services Act
represents an important step toward equipping our government with
the means needed to obtain competitive access for U.S. securities
firms in the world's financial markets."
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A copy of the Institute's testimony is attached. Please
call if you wish further information. We will keep you informed
of further developments.
This memo can also be found on FUNDS, the Institute's Fund
User Network and Delivery Systems, under Legislative Affairs,
Washington Update.
Julie Domenick
Vice President-Legislative Affairs