October 2, 1991
TO: SEC RULES COMMITTEE NO. 61-91
1990's AD HOC COMMITTEE
RE: INSTITUTE LETTER TO NASD ON ADVERTISING RULES
__________________________________________________________
Attached is a copy of a letter recently submitted by the
Institute to the Investment Companies Committee of the NASD. The
letter requests that, in connection with the SEC's review of
investment company regulation, the Committee recommend that the
NASD support changes to the rules under the Securities Act
applicable to mutual fund advertising. Specifically, the letter
urges that the dichotomy between Rule 134 and Rule 482
advertisements, which results in all performance advertising
being limited to information "the substance of which" appears in
a fund's statutory prospectus, be abandoned. The letter suggests
two ways in which this could be accomplished: by dropping the
"substance of which" requirement under Rule 482 or by removing
the content limitations under Rule 134.
A copy of this letter also has been sent to the Division of
Investment Management.
Craig S. Tyle
Associate General Counsel
Attachment