TO: Commission File No. S7-17-02
FROM: Christopher Kaiser, Senior Counsel
Division of Investment Management
RE: Proposed Amendments to Investment Company Advertising Rules
Release No. IC-25575
DATE: April 3, 2003

Keith Carpenter and I called John Hammalian of The Dreyfus Corporation to clarify a concern raised in his July 30, 2002 comment letter on the proposed advertising rule amendments. In this letter he asked whether "a time frame for month-end returns established a precedent with respect to quarterly returns." He expressed concern that the length of time allowed under "the most recent practicable date" prong of the currentness test could be restricted and made impractically short by the proposed three-day safe harbor for month-end data; i.e., that quarterly performance data in advertising could never be considered current under rule 482, unless the data is for the most recent quarter ended three days before the use of the advertisement, even if updating information within that timeframe is not reasonably practicable. He also expressed his concern about the potential impact on NASD standards for updating quarterly information for sales materials.