Institute Files Comment Letter on Proposed NASD Policy Relating to the Electronic Delivery of Information

Washington, DC, October 2, 1997 - The Institute filed a comment letter with the Securities and Exchange Commission on the National Association of Securities Dealers, Inc.'s proposed Notice to Members setting forth the NASD's policy relating to the electronic delivery of information between NASD members and their customers. The NASD's policy is based upon the SEC's guidelines that were published in October 1995 and May 1996 and that establish a framework under which broker-dealers and others may use electronic media as alternatives to paper-based media to satisfy delivery obligations under federal securities laws. The Notice states that use of electronic media is permitted, provided that members comply with the standards contained in the SEC releases. The Notice also contains a list of current NASD rules that require or permit communications between members and their customers for which electronic delivery may be used in accordance with the SEC releases. The comment letter generally supports this approach.