OTHER NEWS - April 20, 1994

The Securities and Exchange Commission voted to require investment advisers that run “wrap-fee” programs to provide better information on the cost of the accounts and how they are managed. Wrap-fee programs sponsored by brokerage firms combine asset-management and transaction costs in one flat fee, typically about 3% a year, based on a percentage of assets under management. By Oct. 1, brokerage firms will have to give investors separate brochures when they open wrap-fee accounts. Currently, an investor opening such an account receives a thick disclosure statement called Form ADV, which is like a prospectus on the investment adviser.