MSRB Proposal Requires Fund Ads to Direct Investors to Recent Performance Information

Washington, DC, July 8, 2005 - The SEC is seeking public comment on a Municipal Securities Rulemaking Board (MSRB) proposal that would require advertisements that contain performance data for municipal fund securities to provide investors with access to the most recent performance information.

Background
Specifically, the MSRB proposal would require brokers, dealers, and municipal securities dealers to include in their advertisements a website or toll-free phone number where investors can obtain the most recent month-end performance information. If adopted, the new requirement would apply to ads containing performance data that are published on or after December 1, 2005.

ICI Position
The Institute will likely comment on the proposal by the July 21, 2005 comment deadline. Overall, the Institute supports efforts to improve disclosure in order to help investors make informed investment decisions. ICI also has supported efforts to increase consistency between MSRB and SEC mutual fund performance advertising rules.

Related Links
A section of this website is devoted to disclosure of mutual fund performance, advertising, and marketing.