June 3, 1998

The Honorable Arthur Levitt, Jr.
Chairman
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549

Dear Chairman Levitt:

This is with further reference to my letter of February 27, 1997 concerning alleged "soft dollar" abuses and your agency's examination of that issue.

On March 19, 1997, you wrote to me promising to keep me informed and to provide me with your report and findings. In the interim, several enforcement actions in this area have been brought and publicly reported. Also, I have noted press reports that the Securities Industry Association formed a panel in June 1997 to develop soft dollar best practices guidelines, and that the Association for Investment Management and Research Blue Ribbon Task Force for Soft Dollar Standards had issued its final report, "AIMR Soft Dollar Standards: Guidance for Ethical Practices Involving Client Brokerage." I renew my request for the information I requested in February of last year, and also ask for your assessment of the adequacy of any industry standards and guidelines to stem improper soft dollar practices. Is there a demonstrated need for the SEC to reinterpret the scope of the safe harbor of Section 28(e) or for Congress to revise or repeal that section of the Exchange Act?

Thank you for your cooperation and attention to this matter. I remain a strong supporter of your efforts to maintain the honesty and integrity of the U.S. securities markets.

Sincerely,

JOHN D. DINGELL
RANKING MEMBER

Enclosures

cc: The Honorable Tom Bliley
The Honorable Michael Oxley
The Honorable Tom Manton

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