ICI Supports NASD Proposal to Require Principal Pre-Use Approval of Retail Correspondence

Washington, DC, June 1, 2005 - The Institute supports the National Association of Securities Dealers' (NASD) proposal to require principal approval of correspondence sent to 25 or more existing retail customers within a 30-day calendar period.

Background
In April, NASD issued a request for comment on the proposal to amend Rule 2211, which would require that a registered principal approve, prior to use, any correspondence sent to 25 or more current retail customers within a 30-day period. This rule change would affect the NASD's definition of correspondence, which currently only includes written or electronic mail messages sent to fewer than 25 existing retail customers.

ICI Position
The Institute recently issued a comment letter in support of the proposed change because principal approval helps to assure that customer correspondence is fair and balanced and otherwise complies with NASD and Securities and Exchange Commission requirements.

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