August 15, 1994
TO: BOARD OF GOVERNORS NO. 76-94
FEDERAL LEGISLATION COMMITTEE NO. 21-94
FEDERAL LEGISLATION MEMBERS NO. 18-94
SEC RULES COMMITTEE NO. 89-94
RE: TELEMARKETING BILL HEADS FOR PRESIDENT'S DESK
__________________________________________________________
Last week, the House and Senate approved H.R. 868, the
"Telemarketing and Consumer Fraud Prevention Act", a bill to
require the Federal Trade Commission to enact rules to prohibit
telemarketing scams. The bill also requires the SEC to
promulgate rules "substantially similar" to those adopted by the
FTC, unless the SEC determines that:
1) current securities laws or rules provide similar
protections from deceptive or abusive telemarketing
practices; or
2) that rules adopted by the FTC would not be necessary or
appropriate for the protection of investors; or
3) would be inconsistent with the maintenance of fair and
orderly markets.
Any action taken by the SEC would have to occur within six
months of the effective date of rules promulgated by the FTC.
The legislation is now pending before the President for
signature.
A copy of the final language is attached for your review.
If you wish additional information, please contact the
Legislative Affairs Department at 202/326-5890. We will keep you
informed of further developments.
This memo can also be found on FUNDS, the Institute's Fund
User Network and Delivery System, under "Legislative Affairs;
Washington, Update."
Julie Domenick
Senior Vice President
Legislative Affairs
Attachment