Institute Supports Proposal to Help Investors Evaluate Investments

Washington, DC, October 2, 2002 - The Institute supports interpretive material proposed by the NASD that would permit NASD members to make available to their customers an "investment analysis tool," an interactive technological tool that would help investors to evaluate the potential risks of and returns on particular investments. NASD members would be permitted to offer the "investment analysis tool," provided the member complies with specified disclosure requirements and provides NASD staff access to the tool and any related sales material at least 30 days prior to its use.

In its comment letter, the Institute supports the NASD's proposal but makes a number of recommendations regarding the proposed disclosure requirements and the impact of the proposed changes on existing NASD rules.