NASD Issues Notice to Members on Final Mutual Fund 'Text Box' Rule
The NASD has issued a Notice to Members providing guidance on the new "text box" amendments to the NASD rule governing communications with the public.
The rule requires performance sales material for mutual funds (other than money market funds) to present Rule 482 and Rule 34b-1 performance information. The fundís maximum front-end or back-end sales charge and annual operating expense ratio also must be displayed. In print materials, this must appear in a "prominent text box."
The new requirements apply to performance sales material used on or after April 1, 2007. Sales materials that are changed to add the text box must be refiled with the NASD.