Institute Files Comment Letter on NASAA Proposal for Sales of Securities at Financial Institutions

Washington, DC, June 19, 1998 - Last month the NASAA Board of Directors released for public comment Revised Proposed Model Rules for Sales of Securities at Financial Institutions (the "Revised Proposed Rules"). Unlike previous versions of this proposal, the Revised Proposed Rules largely track federal standards regulating the conduct of broker-dealers selling securities on the premises of financial institutions and, in particular, NASD Rule 2530 and the Interagency Statement on Retail Sales of Non-Deposit Investment Products. For this reason, the Institute's comment letter to the NASAA Securities Activities of Banks Committee supports NASAA's adoption of the Revised Proposed Rules. The individual states must adopt the Revised Proposed Rules in order for them to have any effect.