January 14, 1993
TO: BOARD OF GOVERNORS NO. 4-93
RE: NAFTA - MEXICO
__________________________________________________________
As you know, the Institute has worked in recent months to
ensure that the North American Free Trade Agreement will permit
U.S. investment management firms to enter the Mexican mutual fund
market. We are pleased to report that, at the Institute's
request, the Department of Treasury has confirmed with the
Mexican government their understanding that U.S. firms will be
able to establish wholly-owned Mexican mutual fund operating
companies following implementation of the NAFTA. Such mutual
fund operating companies will be able to organize Mexican funds,
and provide investment advisory, transfer agency and distribution
services for a fee based on a percentage of fund assets. Mutual
fund operating companies need not be affiliated with a Mexican
bank or securities firm in order to engage in these activities.
Attached is a copy of the correspondence. We will keep you
informed of developments.
Matthew P. Fink
President
Attachment