| | Attachment to Letter on Web-Based Investment Programs, September 2000 |
 | | Courts have found that, even where an investor has the right to control the management of his or her investment, if the investor shows practical dependence or an inability to exercise meaningful powers of control or to find others to manage the investment, he or she is relying upon the efforts of others. |
 | | And like the jumbo CD investors, Folio investors will be paying for the security of knowing that they could liquidate their Folios at a moment's notice free from concern as to loss of income or capital, while awaiting for SIPC distributions (which might even be in-kind, i.e., in illiquid odd lots and unmarketable fractional shares). |
 | | Moreover, the conditions to the safe harbor are designed to ensure that clients in a program relying on the rule receive a particular sort of individualized treatment, including receiving sufficient attention from the adviser to their financial situations and investment objectives and retaining the ability to place investment restrictions on the management of their accounts. |
| www.ici.org /statements/cmltr/00_sec_web_portfolios_attach.html (7636 words) |