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- ICI Comment Letters
ICI Participates in NASD Breakpoint Task Force
Washington, DC, February 19, 2003 - Institute General Counsel Craig Tyle and Institute members will participate in an NASD Breakpoint Task Force that will recommend ways in which the mutual fund and brokerage industries can ensure that investors are not overcharged when they purchase mutual funds with front-end loads.
The task force is intended to identify and guide the implementation of uniform and cost-effective procedures for ensuring that investors receive the correct sales charge discounts. The task force will be chaired by Mary Schapiro, Vice Chairman, NASD, and President, Regulatory Policy and Oversight, NASD, and will include, along with Tyle, Stuart Kaswell, Vice President and General Counsel, SIA; and Elisse Walter, Executive Vice President, Regulatory Policy and Oversight, NASD. Other mutual fund industry task force members include:
- Karnig H. Durgarian, Senior Managing Director, Putnam Investments;
- Terry K. Glenn, Chairman of the Americas and President of ML Funds, Merrill Lynch Investment Managers;
- Tony Green, President, AIM Fund Services, Inc.;
- Paul G. Haaga, Jr., Executive Vice President, Capital Research and Management Company; and
- George Hrabovsky, President, Alliance Global Investor Services, Inc.
The SEC, with the support of the Institute and the Securities Industry Association, asked NASD to spearhead the formation of the task force after routine NASD examinations found that investors do not always receive the correct sales charge discounts. NASD directed its members that sell mutual funds with front-end loads to immediately review the adequacy of their policies and procedures to ensure that investors are charged the correct sales loads on mutual fund transactions.