95-4237. Securities Uniformity; Annual Conference on Uniformity of Securities Law  

  • [Federal Register Volume 60, Number 35 (Wednesday, February 22, 1995)]
    [Notices]
    [Pages 9871-9875]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-4237]
    
    
    
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    SECURITIES AND EXCHANGE COMMISSION
    
    [Release No. 33-7137, File No. S7-6-95]
    
    
    Securities Uniformity; Annual Conference on Uniformity of 
    Securities Law
    
    agency: Securities and Exchange Commission.
    
    action: Publication of release announcing issues to be considered at a 
    conference on uniformity of securities laws and requesting written 
    comments.
    
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    summary: In conjunction with a conference to be held on March 27, 1995, 
    the Commission and the North American Securities Administrators 
    Association, Inc. today announced a request for comments on the 
    proposed agenda for the conference. This meeting is intended to carry 
    out the policies and purposes of section 19(c) of the Securities Act of 
    1933, adopted as part of the Small Business Investment Incentive Act of 
    1980, to increase uniformity in matters concerning state and federal 
    regulation of securities, to maximize the effectiveness of securities 
    regulation in promoting investor protection, and to reduce burdens on 
    capital formation through increased cooperation between the Commission 
    and the state securities regulatory authorities.
    
    dates: The conference will be held on March 27, 1995. Written comments 
    must be received on or before March 22, 1995 in order to be considered 
    by the conference participants.
    
    addresses: Written comments should be submitted in triplicate by March 
    22, 1995 to Jonathan G. Katz, Secretary, Securities and Exchange 
    Commission, 450 5th Street NW., Washington, DC 20549. Comments should 
    refer to File No. S7-6-95 and will be available for public inspection 
    at the Commission's Public Reference Room, 450 5th Street NW., 
    Washington, DC 20549.
    
    for further information contact: William E. Toomey or Richard K. Wulff, 
    Office of Small Business Policy, Division of Corporation Finance, 
    Securities and Exchange Commission, 450 5th Street NW., Washington, DC 
    20549, (202) 942-2950.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Discussion
    
        A dual system of federal-state securities regulation has existed 
    since the adoption of the federal regulatory structure in the 
    Securities Act of 1933 (the ``Securities Act'').\1\ Issuers attempting 
    to raise capital through securities offerings, as well as participants 
    in the secondary trading markets, are responsible for complying with 
    the federal securities laws as well as all applicable state laws and 
    regulations. It has long been recognized that there is a need to 
    increase uniformity between federal and state regulatory systems, and 
    to improve cooperation among those regulatory bodies so that capital 
    formation can be made easier while investor protections are retained.
    
        \1\15 U.S.C. 77a et seq.
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        The importance of facilitating greater uniformity in securities 
    regulation was endorsed by Congress with the [[Page 9872]] enactment of 
    section 19(c) of the Securities Act in the Small Business Investment 
    Incentive Act of 1980.\2\ Section 19(c) authorizes the Commission to 
    cooperate with any association of state securities regulators which can 
    assist in carrying out the declared policy and purpose of section 
    19(c). The policy of that section is that there should be greater 
    federal and state cooperation in securities matters, including: (1) 
    Maximum effectiveness of regulation; (2) maximum uniformity in federal 
    and state standards; (3) minimum interference with the business of 
    capital formation; and (4) a substantial reduction in costs and 
    paperwork to diminish the burdens of raising investment capital, 
    particularly by small business, and a reduction in the costs of the 
    administration of the government programs involved. In order to 
    establish methods to accomplish these goals, the Commission is required 
    to conduct an annual conference. The 1995 meeting will be the twelfth 
    such conference.
    
        \2\Pub. L. 96-477, 94 Stat. 2275 (October 21, 1980).
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    II. 1995 Conference
    
        The Commission and the North American Securities Administrators 
    Association, Inc. (``NASAA'')\3\ are planning the 1995 Conference on 
    Federal-State Securities Regulation (the ``Conference'') to be held 
    March 27, 1995 in Washington, DC. At the Conference, representatives 
    from the Commission and NASAA will form into working groups in the 
    areas of corporation finance, market regulation, investment management, 
    and enforcement, to discuss methods of enhancing cooperation in 
    securities matters in order to improve the efficiency and effectiveness 
    of federal and state securities regulation. Generally, attendance will 
    be limited to representatives of the Commission and NASAA in an effort 
    to promote frank discussion. However, each working group in its 
    discretion may invite certain self-regulatory organizations to attend 
    and participate in certain sessions.
    
        \3\NASAA is an association of securities administrators from 
    each of the 50 states, the District of Columbia, Puerto Rico, Mexico 
    and twelve Canadian Provinces and Territories.
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        Representatives of the Commission and NASAA currently are 
    formulating an agenda for the Conference. As part of that process the 
    public, securities associations, self-regulatory organizations, 
    agencies, and private organizations are invited to participate through 
    the submission of written comments on the issues set forth below. In 
    addition, comment is requested on other appropriate subjects sought to 
    be included in the Conference agenda. All comments will be considered 
    by the Conference attendees.
    
    III. Tentative Agenda and Request for Comments
    
        The tentative agenda for the Conference consists of the following 
    topics in the areas of corporation finance, investment management, 
    market regulation and oversight, and enforcement.
    
    (1) Corporation Finance Issues
    
    a. Forward-looking Information
        On October 13, 1994, the Commission issued a concept release\4\ 
    regarding disclosure of forward-looking information and the 
    effectiveness of the safe harbor provisions for that type of 
    disclosure.\5\ The concept release requests comment from the public on 
    various alternatives to the safe harbor provisions that have been 
    proposed by several people. In addition, the Commission will hold 
    public hearings in Washington, DC and in San Francisco, California on 
    February 13 and 16, 1995, respectively, concerning these issues. The 
    conference participants will discuss and consider the issues regarding 
    the use of forward-looking information in disclosure documents and the 
    Commission's safe harbor provisions.
    
        \4\Securities Act Release No. 7101 (October 13, 1994) (59 FR 
    52723).
        \5\See Securities Act Rule 175, 17 CFR 230.175; Securities 
    Exchange Act Rule 3b-6, 17 CFR 240.3b-6.
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    b. Uniform Limited Offering Exemption
        Congress specifically acknowledged the need for a uniform limited 
    offering exemption in enacting section 19(c) of the Securities Act and 
    authorized the Commission to cooperate with NASAA in its development. 
    The Commission working with the states toward this goal, developed Rule 
    505 of Regulation D, the federal exemption for certain limited 
    offerings, while NASAA crafted the complementary Uniform Limited 
    Offering Exemption (``ULOE'').
        ULOE provides the framework for a uniform exemption from state 
    registration for certain issues of securities which would be exempt 
    from federal registration by virtue of Regulation D. To date, more than 
    half the states have adopted some form of ULOE. Both the Commission and 
    NASAA continue to make a concerted effort toward its universal 
    adoption. The conferees will discuss the continued usefulness of ULOE, 
    as well as possible steps to encourage its adoption by the remaining 
    states. Further, consideration will be given to whether there are 
    alternative exemptive methods which might be suitable for coordination 
    among the states and the federal system, either within or outside of 
    the ULOE framework.
    c. Small Business Initiative
        On July 30, 1992, the Commission adopted a number of rulemaking 
    changes, often described as the Small Business Initiative, which were 
    designed to streamline and simplify the Commission's regulatory system 
    applicable to the public sale of securities by small businesses, and to 
    provide new opportunities for investors, consistent with the 
    Commission's obligations to protect such investors.\6\ Among other 
    things, the ceiling for the Regulation A exemption was raised from 
    $1,500,000 to $5,000,000, and issuers contemplating a Regulation A 
    offering were, for the first time, permitted to use a written document 
    to ``test the waters'' for investor interest prior to assuming the 
    expense of an offering.
    
        \6\Securities Act Release No. 6949 (July 30, 1992) (57 FR 
    36442).
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        The participants will discuss the impact of these changes, and the 
    need for any additional exemptive relief in the small business area. 
    The participants will also review their experience with amended 
    Regulation A and the use of ``test the waters'' documents.
        Public comment is invited on the efficacy of the Small Business 
    Initiative as a whole. Comment is also sought with respect to any other 
    exemptions that might be developed to enhance the ability of small 
    issuers to raise capital, while protecting legitimate interests of 
    investors.
    d. Disclosure Policy and Standards
        The Commission regularly reviews and revises its policies with 
    regard to the most appropriate methods of ensuring the disclosure of 
    material information to the public. Coordination of this effort with 
    the states has been extremely helpful. Commenters are invited to 
    discuss areas, and particularly whether or not there are particular 
    industries, where federal-state cooperation in addressing disclosure 
    standards could be of special significance as well as any ways in which 
    federal-state cooperation could be improved. Comment is also sought on 
    the application of plain language principles to disclosure documents 
    that are becoming increasingly lengthy and complex. [[Page 9873]] 
    e. Multinational Securities Offerings
        The Commission has recently adopted a number of changes to its 
    rules and forms designed to facilitate access by foreign issuers to the 
    U.S. capital markets. On April 19, and December 13, 1994, the 
    Commission adopted amendments designed to streamline the registration 
    and reporting process for foreign companies accessing the U.S. public 
    markets by expanding the availability of short-form and shelf 
    registration and streamlining the reconciliation and reporting 
    requirements.\7\ Comment is specifically requested on ways to 
    coordinate federal and state treatment of multinational offerings.
    
        \7\Securities Act Release No. 7053 (April 19, 1994) (59 FR 
    21644); Securities Act Release Nos. 7117, 1778, 7119 (December 13, 
    1994) (59 FR 65628, 59 FR 65632, 59 FR 65637).
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    f. Debt Market Initiatives
        On November 10, 1994, the Commission adopted amendments to Rule 
    15c2-12 under the Securities Exchange Act of 1934 (``Exchange Act'') 
    that are intended to improve disclosure in the secondary market for 
    municipal securities.\8\ The amendments prohibit a municipal securities 
    dealer from underwriting an issue of municipal securities unless the 
    issuer undertakes to provide annual financial information and notices 
    of material events to the market by lodging that information with 
    informational repositories. The amendments also prohibit the 
    recommendation of a municipal security unless the dealer has procedures 
    in place to provide reasonable assurance that it will receive promptly 
    any event notices with respect to that security.
    
        \8\Securities Exchange Act Release No. 34961 (November 10, 1994) 
    (59 FR 59390).
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        The amendments follow upon a March 9, 1994 interpretive release 
    issued by the Commission that addressed the disclosure obligations of 
    issuers and other market participants under the antifraud provisions of 
    the federal securities laws in both the primary and secondary markets 
    for municipal securities.\9\
    
        \9\Securities Exchange Act Release No. 33741 (March 9, 1994) (59 
    FR 12748).
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        The Conference participants will discuss these developments and 
    other matters with respect to municipal securities. In addition, they 
    will discuss the Commission's recent proposals concerning disclosure of 
    security ratings.\10\
    
        \10\Securities Act Release No. 7086 (August 31, 1994) (59 FR 
    46314).
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    g. Derivatives
        Derivatives are financial or commodity instruments which derive 
    their value from an interest rate, equity price, market or other 
    defined index, foreign currency exchange rate, commodity price of other 
    identified measure. While derivatives typically are described as 
    including futures, forwards, swaps and options, other instruments such 
    as structured notes, interest-only and principal-only strips, inverse 
    floaters and indexed debt and equity instruments are included in the 
    broader definition of derivatives because they have similar risk 
    characteristics. Recently published data indicate that the notional 
    amount of derivatives worldwide exceeds $12 trillion.
        Investments in derivative and similar instruments expose investors 
    to potential gains or losses linked to the changes in the underlying 
    variable. The increasing complexity and widespread use of derivatives 
    for trading and risk management purpose has generated widespread 
    interest. In 1994 a number of corporate issuers, investment companies 
    and municipalities experienced significant losses on derivative 
    instruments and structured instruments. The Commission has undertaken a 
    number of initiatives to address disclosure, accounting and sales 
    practices involving derivatives and similar instruments. Conferees will 
    discuss the application of federal and state securities laws to 
    derivatives and similar instruments as well as disclosure issues 
    relating to issuances of and investments in these instruments.
    
    (2) Market Regulation Issues
    
    a. Central Registration Depository (``CRD'')
        The CRD is a computerized filing and data processing system 
    operated by the NASD that maintains information concerning registered 
    broker-dealers and their associated persons. The NASD is currently in 
    the process of implementing a comprehensive plan to redesign the CRD. 
    The redesigned system, which is expected to be fully operational in 
    1996, will be expanded to enhance its regulatory function for use by 
    the states, self-regulatory organizations, and the Commission. Among 
    the improvements anticipated are (1) Streamlined presentation and 
    capture of data, (2) better access to information (e.g., the ability to 
    create and retrieve standardized and specialized computer searches), 
    and (3) electronic filing of uniform Forms U-4, U-5, and BD, discussed 
    below.
        The participants will discuss the status of the CRD redesign 
    project, as well as issues relating to operation of the existing CRD 
    system.
    b. Forms Revision
        In connection with the CRD redesign, NASAA has adopted amendments 
    to Form U-4,\11\ the uniform form for registration of associated 
    persons of a broker-dealer. The revisions to Form U-4 respond to 
    certain recommendations addressed in the CRD redesign and primarily are 
    designed to facilitate the conversion of data from the existing CRD 
    system to the newly designed CRD. The Commission recently has proposed 
    for public comment similar amendments to Form BD, the uniform broker-
    dealer registration form under the Exchange Act.\12\ The proposed 
    revisions to Form BD are intended to facilitate retrieval of 
    disciplinary information by eliciting more precise information about 
    broker-dealers and their securities business, and by reorganizing 
    disclosure items into related categories.
    
        \11\See NASAA Reports (CCH) 4161 (1994).
        \12\Securities Exchange Act Release No. 35224 (Jan. 12, 1995), 
    (60 FR 4040).
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        The participants will discuss issues relating to the revisions to 
    Forms U-4 and BD, including the disclosure of customer complaint 
    history of registered personnel of broker-dealers and issues raised by 
    the comment letters on the proposed amendments to Form BD.
    c. Bank Securities Activities
        The NASD recently has proposed rules that would govern the conduct 
    of member broker-dealers operating on financial institution 
    premises.\13\ The proposed rules respond to concerns expressed by NASD 
    members about the lack of clear guidance with respect to the activities 
    of bank-affiliated broker-dealers and third-party broker-dealers 
    operating on the premises of financial institutions pursuant to a 
    networking arrangement. The NASD Notice to Members states that, as 
    proposed, the rules adopt investor protection principles similar to 
    those set forth in a recent no-action letter issued by the staff of the 
    Commission,\14\ and an interagency statement issued by the four banking 
    regulators (``Interagency Statement'').\15\ For example, consistent 
    [[Page 9874]] with the staff no-action letter and the Interagency 
    Statement, the rules would require members to enter into a written 
    agreement with the financial institution that describes the 
    responsibilities of the parties and the conditions of the agreement, 
    including the physical location of the broker-dealer, customer 
    disclosures, compensation, supervisory responsibilities, solicitation 
    of customers, and communications with the public.
    
        \13\See NASD Notice To Members 94-94 (Dec. 1994).
        \14\See Letter re: Chubb Securities Corporation (Nov. 24, 1994).
        \15\See Interagency Statement On Retail Sales Of Nondeposit 
    Investment Products, Board of Governors of the Federal Reserve 
    System, Federal Deposit Insurance Corporation, Office of The 
    Comptroller of the Currency, and Office of Thrift Supervision, (Feb. 
    15, 1994).
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        The participants will discuss these proposed rules and other 
    concerns raised by sales of securities on the premises of financial 
    institutions, including inspections by banking and securities 
    regulators and licensing of financial institution salespersons.
    d. Municipal Securities
        The Commission has been working with Congress, other regulators, 
    and industry participants on a number of issues relating to the 
    municipal securities market, including ways of improving dissemination 
    of disclosure in the primary and secondary markets. As indicated in the 
    Corporation Finance portion of this tentative agenda, the Commission 
    recently adopted amendments to Rule 15c2-12 in furtherance of this 
    goal.\16\
    
        \16\See notes 8 and 9 supra and accompanying text.
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        The Commission also adopted amendments to Rule 10b-10,\17\ which 
    will require brokers-dealers to disclose (1) When a debt security is 
    not rated by a nationally recognized statistical rating organization; 
    (2) if they are not members of the Securities Investor Protection 
    Corporation (except, in limited circumstances, for transactions in 
    mutual fund shares); (3) the availability of information with respect 
    to transactions in collateralized debt securities; and (4) the amount 
    of any mark-ups and mark-downs in certain NASDAQ and regional exchange-
    listed securities that are subject to last sale reporting. In a related 
    release, the Commission adopted Rule 11Ac1-3 and amendments to Rule 
    10b-10, which, together, will require broker-dealers to disclose on 
    customer confirmations, account statements, and new accounts documents 
    whether payment for order flow is received by the broker-dealer for 
    transactions in certain securities and the fact that the source and 
    nature of the compensation received will be furnished upon written 
    request.\18\
    
        \17\Securities Exchange Act Release No. 34962 (Nov. 10, 1994), 
    (59 FR 59612).
        \18\Securities Exchange Act Release No. 34902 (Oct. 27, 1994), 
    (59 FR 55006).
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        The participants will discuss how Rule 11Ac1-3 and amendments to 
    Rules 10b-10 and 15c2-12 will affect the securities industry. In 
    addition, the participants will discuss the progress made by the 
    Municipal Securities Rulemaking Board and the Public Securities 
    Association toward enhanced price transparency in the municipal 
    securities market.
    e. Sales Practice Activities
        In May of last year, the Commission released the findings of the 
    Large Firm Project. The Project involved a review of the hiring, 
    supervisory, and retention practices at nine of the country's largest 
    retail brokerage firms conducted by the Commission, the NYSE and the 
    NASD. As a result of the Project, the Commission staff proposed a 
    number of recommendations to strengthen broker-dealer compliance 
    systems, enhance SRO efforts, and reinforce the Commission's principal 
    mandate of investor protection. The participants will discuss the 
    status of those recommendations, as well as other initiatives resulting 
    from the Large Firm Project, including Commission policy on re-entry 
    into the securities industry of individuals subject to a Commission 
    bar.
        The Commission is in the process of conducting another joint 
    regulatory examination sweep in coordination with the NASD, the NYSE 
    and NASAA. Rather than focus on particular large firms as the staff did 
    during the Large Firm Project, during this sweep the staff will include 
    firms of all sizes and will target so-called ``rogue'' or problem 
    registered representatives throughout the industry. Participants will 
    report on the status of the current sweep.
    f. Cold Calling
        Broker-dealers, like all firms engaged in telemarketing, are 
    subject to the Telephone Consumer Protection Act of 1991 and a Federal 
    Communications Commission (``FCC'') rule promulgated thereunder.\19\ 
    Pursuant to the FCC rule, telemarketers must establish time-of-day 
    restrictions, ``do-not-call'' lists, training requirements, supervisory 
    procedures, and identification requirements. Moreover, in August 1994, 
    new legislation entitled the Telemarketing and Consumer Fraud and Abuse 
    Prevention Act was passed that will require the Federal Trade 
    Commission (``FTC'') to enact cold-calling rules and to direct the SEC 
    to adopt substantially similar rules within six months of the FTC 
    rules.
    
        \19\Pub. L. No. 102-243, 105 Stat. 2394 (1991) (codified at 47 
    U.S.C. 227 (1992)); 47 CFR 64.1200 (1992).
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        The Commission has been considering various methods to curtail 
    abusive cold-calling practices in the securities industry and will 
    discuss with participants what actions might be taken in advance of the 
    FTC rules.
    g. Continuing Education
        The Industry/Regulatory Council on Continuing Education, composed 
    of representatives from the SROs, a cross-section of firms, and 
    liaisons from NASAA and the SEC, is developing a continuing education 
    curriculum to improve practices throughout the industry. Under the 
    Council's proposed program, every broker-dealer will be required to 
    provide its registered representatives and first-line supervisors with 
    annual continuing education relating to products and services. In 
    addition, the Council proposed that all registered representatives who 
    have been registered less than ten years or who have been the subject 
    of serious disciplinary action receive compliance, ethics, and sales 
    practice training. Two working committees are developing the elements 
    of the program. The committees have drafted enabling rules and designed 
    the program structure, content, and delivery mechanisms. The Council 
    received approval of the rules on February 8, 1995 and expects to 
    implement the program in July 1995. Participants will discuss issues 
    involved in implementing the continuing education program.
    h. Three Day Settlement
        In October 1993, the Commission adopted Rule 15c6-1 which will 
    become effective June 7, 1995. The rule establishes three business days 
    as the standard settlement time frame for most broker-dealer 
    transactions. Since the date of adoption, many broker-dealers have been 
    encouraging their retail customers to leave securities in street name 
    and to open up money management accounts in order to meet the three day 
    settlement requirements. While this practice is acceptable, it is a 
    misrepresentation to state that the rule requires customers to leave 
    assets with broker-dealers. The participants will discuss potentially 
    abusive sales practices used by broker-dealers including 
    misrepresentation of the requirements of the rule.
    
    (3) Investment Management Issues
    
    a. Investment Company Disclosure
        Over the last decade, investment company assets--particularly 
    assets [[Page 9875]] invested in open-end investment companies, or 
    ``mutual funds''--have grown steadily. The conferees will discuss a 
    number of Commission initiatives aimed at improving disclosure to 
    mutual fund investors.
        The conferees will discuss ways to improve the quality of 
    information regarding mutual funds available to investors, particularly 
    less experienced investors, as well as federal and state efforts toward 
    more uniform federal and state investment company disclosure 
    requirements. The conferees will also discuss the steps they are taking 
    to examine and to improve the clarity and adequacy of mutual fund 
    prospectuses.
        In response to a request from certain members of Congress, the 
    Division of Investment Management prepared a study dated September 26, 
    1994 on the use of derivatives by mutual funds. As part of its study, 
    the Division recommended that the Commission consider seeking public 
    comment in early 1995 on alternatives for improving risk disclosure in 
    mutual fund prospectuses. The conferees are expected to discuss issues 
    relating to investment company risk disclosure, including the possible 
    use of quantitative risk measurement. In addition, the conferees will 
    discuss ways to facilitate investor access to information about 
    portfolio securities held by funds.
        The Commission recently proposed rule and form amendments relating 
    to the reporting of expenses by investment companies.\20\ The proposed 
    amendments would require an investment company to reflect as expenses 
    in its financial statement certain liabilities of the company paid by 
    broker-dealers in connection with the allocation of the company's 
    brokerage transactions to the broker-dealers. The amendments are 
    intended to enhance the information provided to investors so that they 
    may better assess investment company expenses and performance. The 
    conferees are expected to discuss this proposal and the comments that 
    the Commission has received.
    
        \20\Investment Company Act Release No. 20472 (Aug. 11, 1994) (59 
    FR 42187) (proposing amendments to Rule 6-07 of Regulation S-X).
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        In October of 1994, the Commission adopted significant revisions to 
    the proxy rules applicable to funds.\21\ The amended rules are the 
    first significant revisions to the fund proxy rules since 1960 and 
    reflect the Commission's commitment to improved disclosure for fund 
    shareholders. The conferees are expected to discuss the revised rules.
    
        \21\Investment Company Act Release No. 20614 (Oct. 13, 1994) (59 
    FR 52689).
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    b. Investment Advisers
        On March 16, 1994, the Commission proposed two new rules under the 
    Investment Advisers Act of 1940 (``Advisers Act'').\22\ One of these 
    rules would expressly prohibit investment advisers from making 
    unsuitable recommendations to clients; the other proposed rule would 
    prohibit registered investment advisers from exercising investment 
    discretion over client accounts unless they reasonably believe that the 
    custodians of those accounts send account statements to the clients at 
    least quarterly. The conferees will discuss the status of the proposed 
    rules.
    
        \22\Investment Advisers Act Release No. 1406 (March 16, 1994) 
    (59 FR 13464).
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        The conferees will also discuss ways in which the Commission and 
    the states can coordinate their respective investment adviser 
    inspection programs and efforts to identify investment advisers that 
    have failed to register as such with the Commission or the appropriate 
    state authorities.
    
    (4) Enforcement Issues
    
        In addition to the above-stated topics, the state and federal 
    regulators will discuss various enforcement-related issues which are of 
    mutual interest.
    
    (5) Investor Education
    
        Recently, the Commission announced a number of initiatives to aid 
    investors in understanding how to invest wisely and protect themselves 
    from abusive and fraudulent industry practices. The States and NASAA 
    have a longstanding commitment to investor education and the Commission 
    is intent on coordinating and complementing those efforts to the 
    greatest extent possible. The participants at the conference will 
    discuss investor education and potential joint projects in each of the 
    working group sessions. They will specifically consider the results of 
    recent Commission activities in this area: Information generated at a 
    series of town meetings and investor forums; public reaction to a new 
    toll-free information line for investors and a new electronic bulletin 
    board which provides information about the Commission and its 
    responsibilities; the usefulness of other explanatory informational 
    materials, including new pamphlets provided by the Commission to the 
    public; and the progress of Commission efforts to develop ``plain 
    English'' instructions for mandatory disclosure items, and guidelines 
    for simpler summaries of information in required filings. Future 
    projects to be considered will include the following: (1) Developing an 
    ``Investor Information Kit'' for novice or unsophisticated investors 
    that includes basic information that every investor should know in an 
    easy-to-use format; (2) developing a model curriculum for high school 
    classes and adult seminars on the basics of how to invest wisely and 
    what to do if a problem arises; and (3) designing a distribution plan 
    for Commission educational products to assure that information is 
    provided to investors when they are in the process of making major 
    investment decisions and most likely to need such information.
    
    (6) General
    
        There are a number of matters which are applicable to all, or a 
    number, of the areas noted above. These include EDGAR, the Commission's 
    electronic disclosure system, rulemaking procedures, training and 
    education of staff examiners and analysts and sharing of information.
        The Commission and NASAA request specific public comments and 
    recommendations on the above-mentioned topics. Commenters should focus 
    on the agenda but may also discuss or comment on other proposals which 
    would enhance uniformity in the existing scheme of state and federal 
    regulations, while helping to maintain high standards of investor 
    protection.
    
        Dated: February 15, 1995.
    
        By the Commission.
    Margaret H. McFarland,
    Deputy Secretary.
    [FR Doc. 95-4237 Filed 2-21-95; 8:45 am]
    BILLING CODE 8010-01-M
    
    

Document Information

Published:
02/22/1995
Department:
Securities and Exchange Commission
Entry Type:
Notice
Action:
Publication of release announcing issues to be considered at a conference on uniformity of securities laws and requesting written comments.
Document Number:
95-4237
Dates:
The conference will be held on March 27, 1995. Written comments must be received on or before March 22, 1995 in order to be considered by the conference participants.
Pages:
9871-9875 (5 pages)
Docket Numbers:
Release No. 33-7137, File No. S7-6-95
PDF File:
95-4237.pdf