* See Memorandum to Closed-End Investment Company Committee No. 33-97, SEC Rules Committee No. 91-97 and
Unit Investment Trust Committee No. 57-97, dated September 17, 1997.
[9281]
September 26, 1997
TO: CLOSED-END INVESTMENT COMPANY COMMITTEE No. 35-97
SEC RULES COMMITTEE No. 93-97
UNIT INVESTMENT TRUST COMMITTEE No. 59-97
RE: ICI COMMENT LETTER ON REVISED NASD NON-CASH COMPENSATION
PROPOSAL
______________________________________________________________________________
The Institute has filed with the Securities and Exchange Commission the attached
comment letter concerning the NASDs revised non-cash compensation proposal. The letter is
substantially similar to the draft that we recently circulated to you.* The letter generally
supports the proposal, but recommends that the NASD reinstate a provision concerning
payments of cash incentives directly to associated persons of an NASD member. The letter
states that these payments raise the same concerns, and should be treated the same, as awards
of non-cash compensation to individual representatives. In addition, the letter:
reiterates the Institutes recommendation that the proposal be revised to permit
NASD members to create in-house incentive programs that focus on a designated
broad investment objective or category, rather than including all investment
company securities sold by the member;
supports an explanation in the proposing release of the provision concerning
determinations of attendance at training and education meetings;
recommends that NASD members be permitted to make contributions to non-NASD
members in-house incentive programs that comply with the rule amendments; and
makes certain technical suggestions concerning the proposed implementation of the
rule amendments.
Frances M. Stadler
Associate Counsel
Attachment (in .pdf format)