Securities Industry Association TO NASD: Mutual-Fund Compensation Rules Should Be Uniform, Flexible, Have Clearly Defined Terms

While supportive of enhanced disclosure of mutual-fund revenue-sharing and differential-compensation arrangements contained in an NASD rule proposal, the Securities Industry Association recommended in its comment letter that the NASD: coordinate and make uniform with other regulators and legislators any rulemaking on these arrangements; provide broker-dealers with flexibility as to the methodology for addressing these and related mutual-fund disclosures; and, define "differential compensation" in a simple, straightforward manner. The letter: www.sia.com/2003_comment_letters/pdf/NASD10-17-03.pdf