Notice to Members 03-77

Disclosure of Mutual Fund Expense Ratios in Performance Advertising: NASD Requests Comment on Proposed Amendments to Rules 2210 (Communications With the Public) and 2211 (Institutional Sales Material)

Comment Period Expired January 23, 2004

NASD proposes to amend Rules 2210 and 2211 to require all member communications with the public that contain investment company performance information (“performance advertising”) to present specified information about the fund’s expenses and performance in a prominent text box. These new requirements would improve investor awareness of the costs of buying and owning a mutual fund, facilitate comparisons among funds, and make presentation of standardized performance more prominent. NASD’s proposal would require that:

  • All performance advertising contain a text box that sets forth the fund’s (a) standardized performance information; (b) maximum sales charge; and (c) annual expense ratio; and
  • The text box information be presented in type size at least as large as non-standardized performance, if non-standardized performance information is included.

Questions concerning this Notice may be directed to Angela C. Goelzer, Counsel, Investment Company Regulation, Regulatory Policy and Oversight, at (202) 728-8120.

The views, expressions, findings and opinions expressed in the comments on this Web page are solely those of the author(s) and FINRA accepts no responsibility for the content of the comments: 
DateCommenterFormat - Size
1/23/2004Kevin & Rita MurphyPDF - 24.84 KB
1/23/2004Fidelity InvestmentsPDF - 238.68 KB
1/23/2004Investment Company InstitutePDF - 135.34 KB
1/9/2004John J. Carroll & Co.PDF - 40.96 KB
1/11/2004Nations Financial Group, Inc.PDF - 24.54 KB
1/23/2004Northwestern Mutual Investment Services, LLCPDF - 2.71 MB
1/23/2004Oppenheimer Funds Distributor, Inc.PDF - 92.92 KB
1/22/2004SIA Investment Company CommitteePDF - 105.89 KB
1/30/2004Sherrets & Boecker LLCPDF - 146.46 KB
1/23/2004T. Rowe Price Investment Services, Inc.PDF - 68.89 KB
1/23/2004The Vanguard GroupPDF - 283.71 KB