June 16, 1994
TO: DIRECT MARKETING COMMITTEE NO. 14-94
MARKETING POLICY COMMITTEE NO. 24-94
PUBLIC INFORMATION COMMITTEE NO. 20-94
SALES FORCE MARKETING COMMITTEE NO. 21-94
SHAREHOLDER COMMUNICATIONS COMMITTEE NO. 14-94
RE: NASAA Letter to SEC on Summary Prospectus Propostal
__________________________________________________________
The NASAA Investment Companies Committee recently sent a
letter to the SEC's Division of Investment Management concerning
the Commission's summary prospectus proposal. A copy of the letter
is attached for your information. The Institute is drafting a
response, which will challenge a number of the points in the NASAA
letter. We will send you a copy of the ICI letter when it is
submitted.
The Committee's letter enclosed the results of the Committee's
survey of 52 jurisdictions concerning the summary prospectus.
(Although the Committee asserted that it obtained an "unprecedented
one hundred percent response," it appears that 31 jurisdictions did
not respond or submitted incomplete responses).
The Committee's letter also recommends certain "minimum
requirements" purportedly necessary for widespread acceptance of
the summary prospectus among state regulators. These
recommendations include a requirement that the summary prospectus
rule provide for its staged implementation, that the fund and the
advisor be "seasoned" before using the summary prospectus, that the
summary prospectus be permanently prefiled with the SEC or the NASD
and the states, that investors be permitted to obtain a refund of
sales charges if they redeem within 10 days of receiving the full
prospectus, and that the SEC, NASD, the NASAA enter into a
memorandum of understanding to address state concerns, "including
compliance and enforcement matters."
L. Erick Kanter
Vice President, Public
Information & Marketing