FOR IMMEDIATE RELEASE 97-91 MEDIA ADVISORY Press Contact: John Nester (202) 942-7083 Internet impact and micro-cap fraud highlight SEC Meeting Regulatory issues also on Consumer Affairs Advisory Committee agenda Washington D.C., October 9, 1997 -- The U.S. Securities and Exchange Commission Consumer Affairs Advisory Committee will meet Tuesday, October 14, from 9:30 a.m. to 3:00 p.m. The meeting will be held in Room 1C30, at the Commission's headquarters building, 450 Fifth Street, N.W., Washington, D.C. The meeting will cover micro-cap fraud initiatives, current SEC rulemaking, pending legislation, the Internet, and investor education efforts. SEC Chairman Arthur Levitt created the Consumer Affairs Advisory Committee in 1994 to advise the SEC about the interests and concerns of individual investors in the U.S. securities markets. Committee members include representatives of investor organizations, national consumer advocacy groups, corporations, financial services firms, shareholder relations specialists, and state securities regulators. The meeting is open to the public. A draft agenda and a list of Committee members are attached. # # # Any member of the public who requires auxiliary aids such as a sign language interpreter or material on tape to attend a public meeting should contact Rochelle Franks, Office of Administrative and Personnel Management, to make arrangements. Ms. Franks can be reached at TTY number (202) 942-9558. If you are calling from a non-TTY number, please call the Relay Service at 1-800-877-8339. U.S. SECURITIES AND EXCHANGE COMMISSION CONSUMER AFFAIRS ADVISORY COMMITTEE DRAFT AGENDA October 14, 1997 9:30 a.m. Call Meeting to Order (Room 1C30) Opening Remarks: Chairman Levitt 9:35 a.m. Issue 1: Fighting Fraud in the Micro-Cap Market How Frauds Work: William R. McLucas Director SEC Division of Enforcement What the Regulators Are Doing: Barry R. Goldsmith Executive Vice President NASD Regulation, Inc. Elizabeth Pickar Gray Assistant Director SEC Division of Enforcement Mark Griffin President North American Securities Administrators Association, Inc. 10:30 a.m. Issue 2: Reaching Out -- Employer- Sponsored Education Programs Madeleine d'Ambrosio Vice President TIAA-CREF (Teachers Insurance and Annuity Association) Robert Lee Vice President, Marketing and Communications Prudential Investments Retirement Services Dianne S. Nalin Senior Human Resources Professional IBM Corporation, HR-USA 11:20 a.m. Break 11:30 a.m. Issue 3: The SEC and the Internet: The Internet's Impact on Securities Investments and Commerce John Reed Stark Special Counsel for Internet Projects SEC Division of Enforcement 12:00 noon Lunch 1:00 p.m. Issue 4: Round-table Discussion of Current Rulemaking Initiatives by the Division of Corporation Finance Plain English Update Definition of "Qualified Purchasers" Issues Concerning Charitable Contributions Shareholder Proposals Meredith Cross Associate Director SEC Division of Corporation Finance Ann D. Wallace Senior Special Counsel SEC Division of Corporation Finance Jennifer Bethel Economist SEC Division of Corporation Finance 1:45 p.m. Issue 4: Regulatory and Legislative Update Bond Ratings for Mutual Funds Profile Prospectuses Proposed Revisions to Form N-1A Heidi Stam Associate Director (Legal and Disclosure) SEC Division of Investment Management Robert E. Plaze Associate Director (Regulation) SEC Division of Investment Management NASD Order Handling Rules Decimal Pricing Market-on-Close Orders Richard Lindsey Director SEC Division of Market Regulation Pending Legislation to Preempt State Private Rights of Action Litigation Reform Richard H. Walker General Counsel SEC Office of General Counsel FASB Proposals on Accounting for Derivatives New Derivatives Disclosure Rules Jane Adams Deputy Chief Accountant Office of Chief Accountant 2:30 p.m. Wrap-Up Committee Members may express their views on issues raised during the meeting and issues that should be discussed at future meetings. 3:00 p.m. Meeting Adjourned U.S. SECURITIES AND EXCHANGE COMMISSION CONSUMER AFFAIRS ADVISORY COMMITTEE MEMBERSHIP LIST As of October 14, 1997 DANIEL P. AMOS of Columbus, Georgia President and Chief Executive Officer, AFLAC Inc. LINDY BOGGS of Washington, D.C. President, Tulane University Former Member of the House of Representatives HELEN BOOSALIS of Lincoln, Nebraska Chairwoman, Board of Directors, American Association of Retired Persons JAMES B. CLOONAN of Chicago, Illinois Chairman, American Association of Individual Investors DENISE VOIGT CRAWFORD of Austin, Texas Securities Commission, State of Texas Securities Board President-Elect, North American Securities Administrators Association, Inc. SAMUEL A. DERIEUX of Richmond, Virginia Deloitte & Touche Former Chairman and President, American Institute of Certified Public Accountants BONNIE GUITON HILL of Los Angeles, California President and Chief Executive Officer, Times Mirror Foundation DAVID W. HUNTER of Pittsburgh, Pennsylvania Chairman, Hunter Associates, Inc. Former Chairman, National Association of Securities Dealers, Inc. ANN DIBBLE JORDAN of Washington, D.C. Consultant to and independent director of several public companies *PETER S. LYNCH of Boston, Massachusetts Vice Chairman, Fidelity Management & Research Co. *G.G. MICHELSON of New York, New York Senior Advisor, R.H. Macy & Co., Inc. U.S. SECURITIES AND EXCHANGE COMMISSION CONSUMER AFFAIRS ADVISORY COMMITTEE MEMBERSHIP LIST (continued) As of October 14, 1997 EDWARD I. O'BRIEN of Scarsdale, New York Former President, Securities Industry Association THOMAS E. O'HARA of Bloomfield Hills, Michigan Chairman, Board of Trustees, National Association of Investors Corp. RUDOLPH OSWALD of Potomac, Maryland Former Director, Department of Economic Research, AFL-CIO *WILLIAM G. OUCHI of Santa Monica, California Professor, Anderson School of Management, UCLA *SOL PRICE of La Jolla, California Founder and Chairman Emeritus, The Price Company (now Price Entities) BARBARA ROPER of Pueblo, Colorado Director, Investor Protection, Consumer Federation of America *JOHN L. STEFFENS of New York, New York Executive Vice President, Private Client, Merrill Lynch & Co., Inc. LOUIS M. THOMPSON, JR. of Washington, D.C. President and Chief Executive Officer, National Investor Relations Institute MARK C. THOMPSON of San Francisco, California Senior Vice President, Charles Schwab & Co., Inc. BERNARD V. VONDERSCHMITT of San Jose, California President and Co-founder, Xilinx, Inc. MORTON WAGNER of New York, New York Executive Vice President, Smith Barney Chair, Alliance for Investor Education * unable to attend