January 18, 1994
TO: BANK INVESTMENT MANAGEMENT MEMBERS NO. 3-94
BOARD OF GOVERNORS NO. 8-94
INVESTMENT ADVISERS COMMITTEE NO. 3-94
SEC RULES COMMITTEE NO. 8-94
STATE LIAISON COMMITTEE NO. 6-94
RE: RECENT SPEECH BY SEC COMMISSIONER ROBERTS
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In a wide-ranging speech at the recent NASAA Winter Enforcement Conference,
SEC Commissioner Richard Roberts stated that the "joint objective" of the
Commission and NASAA should be to strengthen the oversight of the investment
company industry in an efficient, non-duplicative manner." Commissioner Roberts
also:
- expressed concern about apparent investor confusion over the
uninsured nature of bank-sold mutual funds and noted that "this
appears to be a fertile area" for the Commission and NASAA to work
together;
- recommended that the federal securities laws be amended to require
banks that manage mutual funds to register as investment advisers
and to establish a federal standard of fiduciary duty in dealings
between a mutual fund and its custodian;
- urged that banks be permitted to sponsor and distribute mutual
funds, provided they do so through separate nonbank affiliates and
subject to appropriate protections (either legislative or
regulatory) against potential conflicts of interest;
- expressed support for the SEC's summary prospectus proposal and
encouraged NASAA to "remain actively and constructively involved" in
this project as well as the Commission's review of prospectus
disclosure generally; and
- supported implementation of a "one stop" electronic filing program
for investment advisers and investment companies.
A copy of Commissioner Roberts' remarks is attached. We will keep you
advised of further developments in these areas.
Paul Schott Stevens
General Counsel
Attachment