The fund industry is concerned that evolving interpretations of the act which authorizes the use of electronic signatures in commerce will inhibit the mutual fund industry's use of the Internet. The Investment Company Institute outlined its concerns in a letter to the Federal Trade Commission last month.

Last June, Congress enacted the Electronic Signature in Global and National Commerce Act, commonly known as ESIGN. The act is intended to facilitate the use of electronic records and signatures in commerce, and to remove any uncertainty about the validity of contracts entered into electronically.

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