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Institute Comments to SEC on Use of Electronic Media by Broker-Dealers, Transfer Agents, and Investment Advisers
Washington, DC, July 2, 1996 - The Securities and Exchange Commission has issued for public comment an Interpretive Release that provides broker-dealers, transfer agents, and investment advisers with guidance in using various types of electronic media under the federal securities laws. The Institute recently submitted a comment letter on the Commission's interpretation.
The Institute's letter requests that the Commission clarify that the informed consent requirement for the electronic transmission of personal financial information does not apply to mutual funds' providing of account balance information through the Internet. It recommends that the Commission and the various self-regulatory organizations, including the National Association of Securities Dealers, Inc. and the New York Stock Exchange, Inc., coordinate their regulatory treatment of the electronic transmission of personal financial information by broker-dealers and investment advisers. It also recommends that both the Commission and the self-regulatory organizations adopt a content-based approach to the regulation of electronic mail messages sent by broker-dealers and investment advisers. Finally, the Institute recommends that the Commission reconsider its requirement that electronically distributed registration statements contain a legend that directs investors to the Commission's World Wide Web site for further information about the issuer.