ICI Comments on NASDR Rule Modernization Proposal

Washington, DC, July 5, 2001 - The Institute recently filed a comment letter with NASD Regulation, Inc. regarding its request for comment on possible ways to modernize NASD rules.

The Institute's letter updates and supplements comments filed in 1999 in response to a similar NASDR request for comment, and makes general recommendations relating to differentiation between institutional and retail customers, prospectus disclosure, and the NASD rulemaking process. In addition, the letter discusses the status of previously recommended changes in the areas of advertising and sales literature; confirmations; forwarding proxy materials; the corporate financing rule; selling concessions; and cash compensation.