1 See Memorandum to Compliance Committee No. 22-96, Direct Marketing Committee No. 22-96, Sales Force Marketing Committee No. 25-96, SEC Rules Committee No. 87-96 and Unit
Investment Trust Committee No. 33-96, dated August 2, 1996.
August 22, 1996
TO: COMPLIANCE COMMITTEE No. 25-96
DIRECT MARKETING COMMITTEE No. 24-96
SALES FORCE MARKETING COMMITTEE No. 27-96
SEC RULES COMMITTEE No. 89-96
UNIT INVESTMENT TRUST COMMITTEE No. 35-96
RE: INSTITUTE COMMENT LETTER ON NASD TELEMARKETING RULE PROPOSAL
______________________________________________________________________________
As we previously advised you, the NASD recently proposed certain rule changes
related to telemarketing.1 The Institute has submitted a comment letter to the SEC requesting
clarification that a provision in the NASDs proposal concerning "demand drafts" does not
apply to certain telephonic or electronic transactions initiated by mutual fund shareholders. A
copy of the Institutes comment letter is attached.
Frances M. Stadler
Associate Counsel
Attachment