Approval of Investment Adviser Registration Depository Filing Fees, 59789-59790 [E5-5599]
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Federal Register / Vol. 70, No. 197 / Thursday, October 13, 2005 / Notices
8. For each fiscal period (not to
exceed a fiscal quarter) during the 24
months following the date of the
Substitutions, NYLIAC will, as a
condition of any Commission order
approving the Substitutions, for each
Policy outstanding on the date of the
Substitution, adjust the Policy values to
the extent necessary to effectively
reimburse Policy owners invested in a
MainStay Replacing Fund for their
proportionate share of any amount by
which the annual rate of the MainStay
Replacing Fund’s total operating
expenses (after any expense waivers or
reimbursements) for that fiscal period,
as a percentage of the Fund’s average
daily net assets, plus the annual rate of
any asset-based charges (excluding any
such charges that are for premium taxes,
or for Policy riders added after
December 31, 2004) deducted under the
terms of the owner’s Policy for that
fiscal period, exceed the sum of:
(a) The annualized rate of the
corresponding Replaced Fund’s total
operating expenses, as a percentage of
such Replaced Fund’s average daily net
assets, for the twelve months ended
December 31, 2004; plus
(b) The annual rate of any asset-based
charges (excluding any such charges
that are for premium taxes), deducted
under that Policy for such twelve
months.
9. NYLIAC represents that the
substitution and the selection of the
Fidelity VIP Mid Cap Portfolio was not
motivated by any financial
consideration paid or to be paid to
NYLIAC or its affiliates by the Fidelity
VIP Mid Cap Portfolio, its advisor or
underwriter, or their respective
affiliates. In connection with assets held
under Policies affected by the
Substitutions, NYLIAC will not receive,
for 36 months following the
Substitution, any direct or indirect
benefits from the Fidelity VIP Mid Cap
Portfolio, or its advisor or underwriter
(or their affiliates), at a rate higher than
that which they had received from the
AmSouth Mid Cap Fund, its advisor or
underwriter (or their affiliates),
including without limitation Rule 12b–
1, shareholder service, administration,
or other service fees, or revenue sharing
or other arrangements.
10. All affected Policy owners will be
given notice of the Substitutions prior to
the Substitutions, and will have an
opportunity to make the following
transfers of their accumulated value
without the imposition of any charge or
limitation (except potentially harmful
transfers, as described above) and
without diminishing the number of
charge-free transfers that otherwise may
be made in a Policy year:
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16:14 Oct 12, 2005
Jkt 208001
• Transfers of accumulated value
from a Subaccount investing in a
Replaced Fund to one or more
Subaccounts investing in other Funds
available under the applicable Policy or
the fixed account, from the date of
notice until the date of Substitution, and
• Transfers of accumulated value
from a Subaccount investing in a
Replacing Fund as a result of a
Substitution to one or more
Subaccounts investing in other Funds
available under the applicable Policy or
the fixed account, for 30 days after a
Substitution.
11. Within five days after each
substitution, NYLIAC will send to the
affected Policy owners written
confirmation that the Substitutions have
occurred and identify the shares of the
Replaced Funds that have been
eliminated and the shares of the
Replacing Funds that have been
substituted.
12. The Substitutions will in no way
alter the insurance benefits to Policy
owners or the contractual obligations of
NYLIAC. The Substitutions will in no
way alter the tax treatment of owners in
connection with their Policies, and no
tax liability will arise for Policy owners
as a result of the Substitutions.
Conclusion
Applicants request an order of the
Commission pursuant to Section 26(c)
of the Act approving the proposed
Substitutions under the terms and
subject to the conditions set forth
herein. Section 26(c), in pertinent part,
provides that the Commission shall
issue an order approving a substitution
of securities if the evidence establishes
that it is consistent with the protection
of investors and the purposes fairly
intended by the policy and provisions of
the Act. For the reasons and upon the
facts set forth above, Applicants
respectfully submit that the
Substitutions meet the standards set
forth in Section 26(c) and that the
approval requested therefore, should be
granted.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5–5598 Filed 10–12–05; 8:45 am]
BILLING CODE 8010–01–P
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59789
SECURITIES AND EXCHANGE
COMMISSION
[Release No. IA–2439]
Approval of Investment Adviser
Registration Depository Filing Fees
Securities and Exchange
Commission.
ACTION: Order.
AGENCY:
SUMMARY: The Securities and Exchange
Commission (Commission or SEC) is
waiving for one year Investment Adviser
Registration Depository (IARD) annual
filing fees for all advisers.
EFFECTIVE DATE: October 7, 2005.
FOR FURTHER INFORMATION CONTACT:
Jennifer L. Sawin, Assistant Director, at
(202) 551–6787, or Iarules@sec.gov,
Office of Investment Adviser
Regulation, Division of Investment
Management, Securities and Exchange
Commission, 450 Fifth Street, NW.,
Washington, DC 20549–0506.
Discusson
Section 203A(d) of the Investment
Advisers Act of 1940 (Advisers Act)
authorizes us to require investment
advisers to file applications and other
documents through an entity designated
by the Commission, and to pay
reasonable costs associated with such
filings.1 In 2000, we designated the
NASD as the IARD system operator and
approved filing fees,2 and later required
advisers registered or registering with us
to file Form ADV through the IARD.3
Approximately 9,000 advisers now use
the IARD to register with us and make
State notice filings electronically
through the Internet.
IARD filing fee revenues from
advisers registering or registered with
the SEC (SEC-associated IARD revenues)
have exceeded projections made in 2000
when the current fee schedule was
approved. Pursuant to that schedule,
filing fees vary according to the
adviser’s assets under management. The
number of SEC-registered advisers has
grown from an estimated 8,100 in 2000
to approximately 9,000 today. More
significantly, advisers’ managed assets
have increased, which has moved many
investment advisers to higher fee
1 See
15 U.S.C. 80b–3a(d).
of NASD Regulation, Inc., to
Establish and Maintain the Investment Adviser
Registration Depository; Approval of IARD Fees,
Investment Advisers Act Release No. 1888 (July 28,
2000) [65 FR 47807 (Aug. 3, 2000)]. Following a
corporate restructuring in 2002, the name of the
IARD system operator was changed to ‘‘NASD.’’
3 Electronic Filing by Investment Advisers;
Amendments to Form ADV, Investment Advisers
Act Release No. 1897 (Sept. 22, 2000) [65 FR 57438
(Sept. 22, 2000)].
2 Designation
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59790
Federal Register / Vol. 70, No. 197 / Thursday, October 13, 2005 / Notices
categories. In 2000, the filing fees were
set based on estimates that nearly half
of SEC-registered advisers were in the
smallest fee category. As of the end of
the 2004 fiscal year, however, fully half
of SEC-registered advisers were in the
highest fee category. Furthermore, IARD
expenses associated with SEC filings
(SEC-associated IARD expenses) have
been less than was projected in 2000.
As a result, SEC-associated IARD
revenues have exceeded SEC-associated
IARD expenses, generating a surplus. As
of June 30, 2005, the cumulative surplus
of SEC-associated IARD revenues over
SEC-associated IARD expenses was
approximately $8.5 million (SECassociated surplus). Following
discussions among Commission staff,
representatives of the North American
Securities Administrators Association,
Inc. (NASAA) on behalf of the State
securities authorities,4 and NASD,
NASD wrote our staff a letter that
‘‘recommends that the annual IARD fee
for SEC-registered advisers be waived
for a one-year period from November 1,
2005 to October 31, 2006.’’ 5 Advisers
registered with us pay their IARD
annual fees when they file their annual
updating amendment to Form ADV, due
within 90 days of their fiscal year end.
In light of the SEC-associated surplus,
we have determined to waive for one
year annual filing fees for all SECregistered advisers. This action is
expected to waive approximately $3.9
million in IARD system fees. The fee
waiver will apply to all annual updating
amendments filed by SEC-registered
advisers from November 1, 2005
through October 31, 2006. Based on
current projections of expected SECassociated IARD revenues and SECassociated IARD expenses in the next
several years, the Commission believes
that the current surplus exceeds the
amount of surplus needed for system
enhancements. Accordingly, the
Commission believes that a one-year
waiver of IARD annual updating
amendment filing fees is appropriate.
4 The
IARD system is used by both advisers
registering or registered with the SEC and advisers
registered or registering with one or more State
securities authorities. NASAA represents the State
securities administrators in setting IARD filing fees
for State-registered advisers. State-registered
advisers pay their annual system renewal fees in
December each year, regardless of their fiscal year.
5 A copy of the letter is available on our website.
NASD has not suggested changes to the initial IARD
filing fees, which are intended to cover the costs
associated with entitling new registrants on the
IARD system. NASD represents that the costs per
adviser have not changed substantially. We are not
changing or waiving these IARD initial set-up fees,
which remain $150 for advisers with assets under
management under $25 million; $800 for advisers
with assets under management between $25 million
and $100 million; and $1,100 for advisers with
assets under management over $100 million.
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16:14 Oct 12, 2005
Jkt 208001
In addition, we note that NASD’s
letter further ‘‘recommends that annual
IARD fees for SEC-registered advisers be
reduced 30% beginning November 1,
2006.’’ 6 In this regard, current
projections of fee revenues and system
expenses cause us to believe that a
reduction in annual filing fees will be
necessary to more closely align the
IARD filing fees with the costs of those
filings. Under Advisers Act section
203A(d), the Commission may require
advisers to pay filing fees that reflect the
reasonable costs associated with filings
made by SEC-registered advisers
through the IARD.
Accordingly, we plan to issue shortly
a notice soliciting comment on the
appropriate level of IARD filing fees for
the period after the expiration of the
one-year waiver. Among the alternatives
on which we plan to seek comment are
a percentage fee reduction for annual
updating amendments filed by SECregistered advisers beginning November
1, 2006 and a second one-year waiver of
annual updating amendment fees.
It is therefore ordered, pursuant to
sections 203A(d) and 206(A) of the
Investment Advisers Act of 1940, that:
For annual updating amendments to
Form ADV filed from November 1, 2005
through October 31, 2006, the fee
otherwise due from SEC-registered
advisers is waived.
By the Commission.
Dated: October 7, 2005.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5–5599 Filed 10–12–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release Nos. 33–8623; 34–52575, File No.
265–23]
Advisory Committee on Smaller Public
Companies
Securities and Exchange
Commission.
ACTION: Notice of Meeting of SEC
Advisory Committee on Smaller Public
Companies.
AGENCY:
The Securities and Exchange
Commission Advisory Committee on
Smaller Public Companies is providing
notice that it will hold a public meeting
on Monday and Tuesday, October 24 &
25, 2005, in Multi-Purpose Room L006
of the Commission’s headquarters, 100 F
6 We note that NASAA has announced a one-year
waiver of annual filing fees and a subsequent
reduction of 30% in annual filing fees for State
registered advisers.
PO 00000
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Street, NE., Washington, DC 20549,
beginning at 9 a.m. on each day. The
meeting is expected to last until
approximately 4 p.m. on each day, with
a lunch break from approximately noon
to 1 p.m. The meeting will be audio
webcast on the Commission’s Web site
at https://www.sec.gov.
The agenda for the meeting includes
consideration of proposals of the
Advisory Committee’s four
subcommittees on possible
recommendations for changes to the
current securities regulatory system for
smaller companies. The public is
invited to submit written statements for
the meeting.
DATES: Written statements should be
received on or before October 17, 2005.
ADDRESSES: Written statements may be
submitted by any of the following
methods:
Electronic Statements
• Use the Commission’s Internet
submission form (https://www.sec.gov/
info/smallbus/acspc.shtml); or
• Send an e-mail message to rulecomments@sec.gov. Please include File
Number 265–23 on the subject line; or
Paper Statements
• Send paper statements in triplicate
to Jonathan G. Katz, Committee
Management Officer, Securities and
Exchange Commission, 100 F Street,
NE., Washington, DC 20549–9303.
All submissions should refer to File
No. 265–23. This file number should be
included on the subject line if e-mail is
used. To help us process and review
your statement more efficiently, please
use only one method. The Commission
staff will post all statements on the
Advisory Committee’s Web site (https://
www.sec.gov./info/smallbus/
acspc.shtml).
Statements also will be available for
public inspection and copying in the
Commission’s Public Reference Room,
100 F Street, NE., Room 1580,
Washington, DC 20549. All statements
received will be posted without change;
we do not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly.
FOR FURTHER INFORMATION CONTACT:
Kevin M. O’Neill, Special Counsel, at
(202) 551–3260, Office of Small
Business Policy, Division of Corporation
Finance, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–3628.
SUPPLEMENTARY INFORMATION: In
accordance with section 10(a) of the
Federal Advisory Committee Act, 5
U.S.C.-App. 1, § 10(a), and the
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[Federal Register Volume 70, Number 197 (Thursday, October 13, 2005)]
[Notices]
[Pages 59789-59790]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-5599]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. IA-2439]
Approval of Investment Adviser Registration Depository Filing
Fees
AGENCY: Securities and Exchange Commission.
ACTION: Order.
-----------------------------------------------------------------------
SUMMARY: The Securities and Exchange Commission (Commission or SEC) is
waiving for one year Investment Adviser Registration Depository (IARD)
annual filing fees for all advisers.
EFFECTIVE DATE: October 7, 2005.
FOR FURTHER INFORMATION CONTACT: Jennifer L. Sawin, Assistant Director,
at (202) 551-6787, or Iarules@sec.gov, Office of Investment Adviser
Regulation, Division of Investment Management, Securities and Exchange
Commission, 450 Fifth Street, NW., Washington, DC 20549-0506.
Discusson
Section 203A(d) of the Investment Advisers Act of 1940 (Advisers
Act) authorizes us to require investment advisers to file applications
and other documents through an entity designated by the Commission, and
to pay reasonable costs associated with such filings.\1\ In 2000, we
designated the NASD as the IARD system operator and approved filing
fees,\2\ and later required advisers registered or registering with us
to file Form ADV through the IARD.\3\ Approximately 9,000 advisers now
use the IARD to register with us and make State notice filings
electronically through the Internet.
---------------------------------------------------------------------------
\1\ See 15 U.S.C. 80b-3a(d).
\2\ Designation of NASD Regulation, Inc., to Establish and
Maintain the Investment Adviser Registration Depository; Approval of
IARD Fees, Investment Advisers Act Release No. 1888 (July 28, 2000)
[65 FR 47807 (Aug. 3, 2000)]. Following a corporate restructuring in
2002, the name of the IARD system operator was changed to ``NASD.''
\3\ Electronic Filing by Investment Advisers; Amendments to Form
ADV, Investment Advisers Act Release No. 1897 (Sept. 22, 2000) [65
FR 57438 (Sept. 22, 2000)].
---------------------------------------------------------------------------
IARD filing fee revenues from advisers registering or registered
with the SEC (SEC-associated IARD revenues) have exceeded projections
made in 2000 when the current fee schedule was approved. Pursuant to
that schedule, filing fees vary according to the adviser's assets under
management. The number of SEC-registered advisers has grown from an
estimated 8,100 in 2000 to approximately 9,000 today. More
significantly, advisers' managed assets have increased, which has moved
many investment advisers to higher fee
[[Page 59790]]
categories. In 2000, the filing fees were set based on estimates that
nearly half of SEC-registered advisers were in the smallest fee
category. As of the end of the 2004 fiscal year, however, fully half of
SEC-registered advisers were in the highest fee category. Furthermore,
IARD expenses associated with SEC filings (SEC-associated IARD
expenses) have been less than was projected in 2000.
As a result, SEC-associated IARD revenues have exceeded SEC-
associated IARD expenses, generating a surplus. As of June 30, 2005,
the cumulative surplus of SEC-associated IARD revenues over SEC-
associated IARD expenses was approximately $8.5 million (SEC-associated
surplus). Following discussions among Commission staff, representatives
of the North American Securities Administrators Association, Inc.
(NASAA) on behalf of the State securities authorities,\4\ and NASD,
NASD wrote our staff a letter that ``recommends that the annual IARD
fee for SEC-registered advisers be waived for a one-year period from
November 1, 2005 to October 31, 2006.'' \5\ Advisers registered with us
pay their IARD annual fees when they file their annual updating
amendment to Form ADV, due within 90 days of their fiscal year end.
---------------------------------------------------------------------------
\4\ The IARD system is used by both advisers registering or
registered with the SEC and advisers registered or registering with
one or more State securities authorities. NASAA represents the State
securities administrators in setting IARD filing fees for State-
registered advisers. State-registered advisers pay their annual
system renewal fees in December each year, regardless of their
fiscal year.
\5\ A copy of the letter is available on our website. NASD has
not suggested changes to the initial IARD filing fees, which are
intended to cover the costs associated with entitling new
registrants on the IARD system. NASD represents that the costs per
adviser have not changed substantially. We are not changing or
waiving these IARD initial set-up fees, which remain $150 for
advisers with assets under management under $25 million; $800 for
advisers with assets under management between $25 million and $100
million; and $1,100 for advisers with assets under management over
$100 million.
---------------------------------------------------------------------------
In light of the SEC-associated surplus, we have determined to waive
for one year annual filing fees for all SEC-registered advisers. This
action is expected to waive approximately $3.9 million in IARD system
fees. The fee waiver will apply to all annual updating amendments filed
by SEC-registered advisers from November 1, 2005 through October 31,
2006. Based on current projections of expected SEC-associated IARD
revenues and SEC-associated IARD expenses in the next several years,
the Commission believes that the current surplus exceeds the amount of
surplus needed for system enhancements. Accordingly, the Commission
believes that a one-year waiver of IARD annual updating amendment
filing fees is appropriate.
In addition, we note that NASD's letter further ``recommends that
annual IARD fees for SEC-registered advisers be reduced 30% beginning
November 1, 2006.'' \6\ In this regard, current projections of fee
revenues and system expenses cause us to believe that a reduction in
annual filing fees will be necessary to more closely align the IARD
filing fees with the costs of those filings. Under Advisers Act section
203A(d), the Commission may require advisers to pay filing fees that
reflect the reasonable costs associated with filings made by SEC-
registered advisers through the IARD.
---------------------------------------------------------------------------
\6\ We note that NASAA has announced a one-year waiver of annual
filing fees and a subsequent reduction of 30% in annual filing fees
for State registered advisers.
---------------------------------------------------------------------------
Accordingly, we plan to issue shortly a notice soliciting comment
on the appropriate level of IARD filing fees for the period after the
expiration of the one-year waiver. Among the alternatives on which we
plan to seek comment are a percentage fee reduction for annual updating
amendments filed by SEC-registered advisers beginning November 1, 2006
and a second one-year waiver of annual updating amendment fees.
It is therefore ordered, pursuant to sections 203A(d) and 206(A) of
the Investment Advisers Act of 1940, that:
For annual updating amendments to Form ADV filed from November 1,
2005 through October 31, 2006, the fee otherwise due from SEC-
registered advisers is waived.
By the Commission.
Dated: October 7, 2005.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5-5599 Filed 10-12-05; 8:45 am]
BILLING CODE 8010-01-P
