The Investment Company Institute (ICI) has proposed that NASD Regulation (NASDR) revise its advertising rules to create separate standards for ads targeted to retail and institutional investors.

Advertising materials for investment advisers, retirement plan sponsors and sophisticated investors should be exempt from the detailed disclosure requirements that govern materials earmarked for retail investors, according to Craig Tyle, ICI general counsel. Instead, institutional advertising should be governed by general securities law anti-fraud standards, Tyle said.

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