ICI Letter Includes Recommendations for European Settlement, Clearance System

Washington, DC, May 3, 2002 - In a comment letter recently submitted to the Committee of European Securities Regulators and the European System of Central Banks, the Institute explains why clearance and settlement risks create problems for investment funds as investors in securities and describes practices that eliminate or reduce risk.

The Institute's letter notes that developing an efficient clearance and settlement system for handling shares involves a number of unique elements. The Institute directs the regulators to a 1997 Institute report that includes seven elements for developing a sound clearance and settlement system.