ATTENTION: MANAGER MUTUAL FUND OPERATIONS, MANAGER DATA PROCESSING, MANAGER CASHIERS, MANAGER P&S DEPARTMENT

SUBJECT: INTRODUCTION OF FUND/SPEED - ACCOUNT INQUIRY SERVICE

National Securities Clearing Corporation (NSCC) is introducing its new XML-based communications platform, Fund/SPEED, which includes an interactive account inquiry service to provide mutual fund distributors with real-time access to a broad array of client account information from across multiple fund companies. This Important Notice describes the account inquiry feature^* of Fund/SPEED. [Other Fund/SPEED features will include transmission of transaction data to NSCC’s Fund/SERV service for processing where settlement will take place directly between the parties outside the facilities of NSCC, and account maintenance. These features, scheduled for introduction during the first quarter of 2002, will be detailed in a subsequent Important Notice.]

The Account Inquiry service provides a standard, centralized method for firms to submit information request messages, and for fund companies and their transfer agents to respond in a real-time mode with data messages that fulfill the request. A front-end graphical user interface (GUI) will need to be developed by the firm or its designated service provider to enable the firm, and their registered representatives and back-office personnel to request and retrieve information. The information may be used to manage, monitor, and reconcile client accounts. Depending on the features offered on the GUI and the information available from the fund, the types of information may include:

• Position Summary and Detail
• Financial History Summary and Detail
• CDSC Hypothetical Calculation
• Rights of Accumulation/Letter of Intent
• Money Transfer Options
• Information on Inquiry Requests supported by the Fund

Fund/SPEED Account Inquiry uses a server-based platform, referred to as the XML Switch, which will support messages written in the developing industry standard XML format. The communications interface between members utilizing Account Inquiry and the XML Switch, will have fully secured connections using either point-to-point leased lines through the SIAC Access Network, or using the Internet with digital certificates for user authentication. The systems design document, Fund/SPEED Schema version 1.15, is available on NSCC’s website https://formats.nscc.com. Other supporting documentation, which include Fund/SPEED Message Protocol version 1.15, Fund/SPEED Setup Procedures, and the Fund/SPEED Data Dictionary, are available on NSCC’s other site https://fundserv.nscc.com.

Participation in Fund/SPEED is available only to members. Prospective users may enroll in the service by contacting the Mutual Fund Hotline, at (212) 855-8877. In connection with this new service, NSCC has created a new Data Services Only (DSO) Member category. Members who wish to use Fund/SPEED should note that they will be responsible for any loss or liability that NSCC may incur as a result of, or in connection with, the member’s use of Fund/SPEED. For more information on Data Services Only Membership, please call the Mutual Fund Hotline and refer to Important Notice A 5330, P&S 4900, dated October 2, 2001.

The XML Switch will be available 24 hours a day, 7 days a week with provisions for systems maintenance. Customer service and technical support for problem resolution will be available on regular business days from 8:30 a.m. to 5:30 p.m. EST.

The attached fee schedule for Fund/SPEED services has been approved by the Board of Directors, and an appropriate rule filing will be made with the Securities and Exchange Commission. Subject to such filing, the monthly membership fees will be effective February 1, 2002. The activity fees are anticipated to be effective on April 1, 2002, and will appear in the May 2002 Billing statement. These fees will apply to, and be payable only by, Fund Members and those Settling Members that act as principal underwriters, co-distributors or sub-distributors for funds, or who otherwise are authorized to process transactions through NSCC’s Mutual Fund Services (referred to as "Mutual Fund Processors").

A group of users representing firms, fund companies, and transfer agents are completing their development work for the service, and have inaugurated the processing on the system for limited functionality. Participants are continuing to phase in additional systems coding, and will accommodate more of the functionality throughout next year. Other firms, fund companies, and transfer agents that would like to learn more about or participate in Fund/SPEED should call the Mutual Fund Hotline at (212) 855-8877, or the undersigned at (212) 855-5671.

Paulino B. Bucaoto
Mutual Fund Services

For each participating Fund Member and Mutual Fund Processor, regardless of activity level

• $250 per month for Mutual Fund Members and Mutual Fund Processors that have less than 25 CUSIPS on Fund/SERV
• $1,000 per month for Mutual Fund Members and Mutual Fund Processors that have 25 - 100 CUSIPS on Fund/SERV
• $2,500 per month for Mutual Fund Members and Mutual Fund Processors that have more than 100 CUSIPS on Fund/SERV

Activity Fees:

For each participating Fund Member and Mutual Fund Processor

In addition to the foregoing fees, for alternate settlement transactions (that is, a transaction that will settle directly between the parties outside the facilities of NSCC) that will be sent via Fund/SPEED to Fund/SERV, participants will be charged the usual Fund/SERV fee of $0.175 per side, except that the Fund Member or Mutual Fund Processor will be charged for both sides of the transaction. More details of transaction processing via Fund/SPEED will be provided at a later time.