NASD Regulation (NASDR) has dropped plans which would have required some firms to provide more warnings when selling mutual funds, a proposal which the mutual fund industry had opposed.

NASDR last week announced it has withdrawn a proposal which would have required firms that sell both federally-insured bank products and securities products such as mutual funds to explain that the securities products are not insured. The new rule would have provided little additional protection to investors, NASDR said in a notice to members, Jan. 11.

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